Volume Profile: Part 1

this is painting the tape a podcast by traitors for traitors join us as we embark on the journey of the game we love tick-by-tick what's up guys this is Leo from painting the tape we're on episode 11 and we're here to talk about the volume profile I don't know if this is a multi-session episode or series but I've got AJ and Stowe what's up guys what is it what is good yeah I can I can see this potentially going too long so we might have to do two parts we'll see well the thing is is that we could make you listen for an hour and a half to two hours or we can break it up into two 45 minutes at one hour sessions so we'll let you decide no we won't because we're we're just figured out right now I think Stowe's probably going to make that call he's the editor before we dive into the volume profile do you guys have any new information new updates how's life life is good the baby is babying yeah how's baby world you want out of town right how that yes he was honestly so good the entire time he was like he like he smiled before but like as soon as we got there he decided that like smiling was like his new thing so that just increased the vibes of the little vacation and tell you so do you have feelings for him now yeah he could stay okay okay he's he's earned the he's earned the right to be one of this household for sure now I want to eat one one once he smiled my cold dead heart like definitely was like that scene in what is it is that Christmas movie Dr. Seuss the Grinch the Grinch know in his heart like grew like four sizes from being a dead stone yes so it's good so you recently share some information about the challenge I did yes what's how's that going oh really good that was a weird that was a weird time to like have to sit in that for that long but it was like the most productive thing I've ever done I think I'm trading wise was like just slowly grind get back to pure grinding and have that daily profit limit I don't know I never thought that that would help me that way but like I yeah now I'm gonna keep that forever and just having that perspective on how much money I'm actually making how much money do I really need to make how much time do I need to give the market like all those different questions is stuff that like we don't really talk about or people on the internet don't really talk about when they're talking about trading all the time and it was super beneficial to me to just like not fucking trade if I didn't need to and that turned out to be like a big solution to it's on the problems I had so yeah it's awesome man good job it was fucking weird it was so weird I was like oh I don't need to fucking look at this nightmare machine all the time you know because like if you stare at the if you stare at the market for like six hours and you're having a bad time like it's not fun and then if you have to do that for four days or five days like that's not a fun time but yeah so having those set limits and it also got me into thinking about my daily lost limit a little differently as well whereas like I went back through like the entire summer even back into the spring and did like total average like normal day how much volume am I doing how many trades am I doing some of those days are very embarrassing to go back and look at I don't know if you've ever come back and look at I'm stopping yeah just usually sure yeah no no I'm not really I have no idea just talking about stuff all right cool anyway it's next topic but it was it was cool to be able to draw like I was like oh okay so instead of because a common correlation with like the amount of money that you make when you see it on the internet is well what is the most amount of money that someone has lost in a day and I realize that instead of like deleting an entire month's worth of work if I just set that daily lost limit at I don't know two two and a half times my normal daily win rate then I only have to claw back two or three days and then I'm right back in there and that was also really helpful I think it's really cool you took a took a bit of a leap of faith because I know it's it's something that's I think counterintuitive to a lot of to a lot of folks for different reasons to like just walk away once you hit a certain number I think a lot of people kind of discourage that but I think it just goes to show that not everything works for everybody some people got to try different things and yeah it's obviously working for you so that's that's the goal here right figure out how to get to make more than you put in to the market like by any means necessary yep these are your means now but not it's been cool it was it was a cool month it was weird like it was mostly weird because my drawdown month wasn't like a proper drawdown month I didn't lose a ton but like I lost my process and lost my confidence and lost my footing I think and just being able to recenter it around like reset my daily loss limit based on something that is tangible to me and then to also be able to like no one to walk away because I've only been trading prop accounts this entire time I don't know for two at least three years just trading props I'm programmed into this like you have a finish line bro so I just I gave myself a finish line every day and then I quit when I get there I'm glad you I'm glad you found yourself I mean you found your mojo it is yeah my mojo is back okay well let's talk about the volume profile what is the volume profile I think the simplest like explanation is that it's just like a visual representation of of all the contracts traded at you know each price whether that you know like each take in the market and that's like in the it's displayed basically in the form of like a histogram right so you can just as the at the end of the session and throughout the session you can as contracts are traded every price this this histogram develops and you could use it for decision-making let's a bit the most basic explanation were a lot of people that probably look at or don't know the volume profile consider they look at volume and they were they think of like volume at the bottom of the chart hmm true yes so what I was talking about was like volume by price but obviously you can look at volume like over time right the like through each candle I just is the is the volume over time consider the volume profile to I've never heard of it like referred to that no no I just think they when most people think about volume they think about it as some type of histogram at the bottom of the chart that represents the number of contracts or the amount of volume in that candle yeah right and they don't necessarily think about volume horizontally traded at each price level right right and this I mean these are concepts for not only you know futures trading which is I think probably most of our audience but this could also apply to stocks and crypto and you know I don't know 4x probably but I know that you know people that know the volume profile know that the concepts transfer from instruments instrument that's not it's not a it's not necessarily a thing that's unique or or only available or usable in the futures world right with the caveat that what is unique to futures is that you when you're looking at any markets volume profile you're actually seeing like pretty much 39.9% of all the contracts traded in that market whereas like a crypto one you're gonna your profile might vary by exchange kind of like the same with a stock so to see yeah right yeah I mean it's not centralized but at least you're getting you're probably getting the same similar picture right right for sure and there's got to be like a moment in every trader's life where they realize that they have to put the volume by price right you know what I mean like everybody starts with it at the bottom well I think I think that it's actually a very futures oriented okay I know that a lot of stock traders use use a volume profile because they don't understand the power of it okay I do not understand its power it's power there's power in the profile there's power in the power in the P okay so like there's some basic concepts that you need to know about the volume profile right we know that it's an analysis of volume done or transacted that price so it's represented vertically instead of at the bottom of your chart I guess I don't know horizontally vertically well you know with this post we're gonna share an image of the volume profile but for those that don't know what it is so we have volume profile and in that profile there's a few things do you guys want to go over some of the basics yes sure so I would say there's like low what some people call low volume nodes or you know we'll call them LVNs for short high volume nodes which are HVNs then there's also like ledges and tapers and I would say those are all like they're all things that you can visually see on the profile don't forget about my boy excess excess sure yes excess indeed so like basically all these phrases of words are just like things that you can see on the profile so for example like a low volume node would be an area where not a lot of volume of contracts have been put in and so the histogram is going to be very thin in that area it's going to be because there's no volume there and conversely like a high volume node it's going to be a very very fat area of the histogram because there's been a lot of volume and interest training there so like the more training that happens in a high volume node the bigger it's gonna get because volume's obviously increasing before we go on to anything else you guys want to add anything to that just like the the biggest thing that volume profiled to me right out the gate was to be able to visualize the idea that the market is an auction and that wherever the most people feel price is the fairest there's going to be the most amount of participants and you can watch that develop over the course of a session over the course of a week whatever time frame you want to put that on and you can see where just because you can see high volume nodes which are large amounts of volume where lots of participants feel like prices fair to transact that and then low volume nodes where no one wanted to make a trade either no one wanted to make a trade and price went higher no one wanted to make a trade price went back lower it doesn't matter necessarily it's just like that's just places where people didn't want to buy and sell shit and that is one of the biggest things that clicked with me when trying to understand auction market theory so great points not taking away from that the highest volume areas high volume nodes the lowest volume areas low volume nodes we'll talk about how we can work around those zones but in addition to high volume low volume we also have this concept of value right value is very simply put if you looked at a perfect bell curve Gaussian bell curve my volume profile home is just got raging hard if you look at a perfect bell curve 70% of the from the top of the curve down to the 70% on each side so 70% of the volume that's transacted would be considered the value areas so that's where the most value is perceived for that day for that session or whatever time frame you're looking at some important concepts can be pulled from established to value value migrating higher on a you know daily session or weekly value overlapping you know things like that so we'll get into that at some point but I'm yes I'm going off on a tangent a little bit in addition to value areas we have this concept called point of control and the point of control is where the most volume was transacted and I remember when I first started to learn about the volume profile that people referred to the volume point of control as the most unstable area and I couldn't now that I actually know what I'm talking about I couldn't disagree more the volume point of control who the fuck said that I'm telling a story dude shut up now I could I'm just saying I couldn't disagree more the volume pro the volume point of control is where the fairest price is across the entire set of distributions right yeah so that's where everybody wanted to do the most business and that's sequentially or not sequentially but that is by default the areas that we get stuck in is that high volume node where the most contracts have occurred and the edges of that volume so the volume high volume edge on the upside and the downside you know we typically rotate around that high volume node from those edges back the middle etc until we leave it so it's actually a kind of a point where yeah trading kind of gets stuck yeah I mean it's the worst place to trade typically right because it's like it's the most congested part of of the I don't know I also just realized this is gonna take like four episodes I think we're gonna have to get Joe been here at some point I think Pock is a it's it's a little bit more sticky for on the intraday perspective like I think as time goes on I don't put a whole lot of weight on Pock in the first like hour two because yeah for sure unless it's like we've we oh unless with the exception being that you know the first hour two is spent like in full blown tight balance and and Pock happens to be very well did very well developed like spot of a value area but like Pock changes so many times early in the session because the profile is not is so we complete at the beginning so I think it depends on the time it depends of the time of day because you could get some really good trades from away from at and around oh yeah totally agree yeah and I think the whole concept of like don't diddle in the middle what at what time is the middle the middle yeah exactly right you don't like you don't just wait a few minutes yeah yeah now I agree in the first like two hours at least watching where that point of control moves around as it develops higher develops lower like those are contacts clues because you're trading a moving market but if you're looking at a higher time frame it's different for sure so I guess intraday volume profiles versus hard time frame volume profiles yeah I think it just it really depends on how well of how well the range has been established because like if you get a really clean clean balance day relatively very like the first couple hours of the session and you do get that Gaussian curve then and like the markets actually kind of established a range meaning we made a high we made a low we rebad re offered like it's it's in pure balance on the intraday time frame sure of trading from back in that area is is not great but I think it it's not necessarily the higher time frame ones for sure are choppy are to trade around but even intraday as soon as you don't want to you really don't want to it's harder definitely tricky to trade for the middle out when the when the balance is well established it's just I think it depends on how well established it is you know all right so we have a volume profile on a session we have a value area we have a volume point of control what is the value what do you guys do for that 70% 70% yes cool I don't think it's something that you play with yeah 70% so the value area is 60% like that it's weird exactly we have the session volume profile and AJ you and I were doing a live stream on OFL today and we talked about some leg to leg volume stuff yes you want to dig into a little bit about what you use the leg to leg volume profile what that actually means sure so obviously volume profiles as you mentioned come across various time frames with the I think the lowest time frame that most people use are familiar with being the session like you said however I think that as an intraday trader there's a ton of value in going a bit a bit deeper than that and that's where leg to legs come in so we say leg to leg we're talking about you know if you if you look at a volume a tick chart or a volume chart you can observe the intraday rotations like pretty cleanly so there's intraday swing highs and lows which create legs up and down as the market moves around all day long and if you would isolate the volume profile the volume of that leg into a profile you would be able to just look at how volume is building in a particular rotation up or down and I think that that is something that at least I know three of us some of the guys we talked to and a ton of people know of fell I've put a lot of we use that a lot in our trading because we're I think we're all the philosophy that we all look at different contextual things but the most recent data is the most important as an intraday trader so that would lend itself to mean that the most import the most recent volume data meaning the most recent legs that you have in your chart those are the most important ones to look at so being able to isolate the volume that profile data that's happened most recently for each leg is something that I know I I know a lot of the OFO guys like we said and all of us on here ticket advantage of for decision making because it's going to it can show you a whole bunch of the things like everything to show you everything that we you know I think we see there's still really a basically said that the vote volume profiles are is our way of kind of determining where the market is interested in trading right is it is it interested in trading in a certain area or is it interested in trading in a certain direction like these are things these are kind of things that you can get from volume profile analysis so you can look at how volume is building in a leg or where it's building in a leg and kind of gauge where the market is really interested in trading in real time I've rambled a bit if any of you guys want to jump in with something I mean that's perfect and that stone referred to we're all gonna talk over each other because we're super volume nerds and that's fine we'll figure it out just hang in there with us so still earlier talk mentioned the word excess and when I heard we're here excess I think of the market profile excess you know like a big wick and terms of volume profile that translate that to taper you know which is another you know thing that you can get from the volume profile age ages mentioned interest right so how many participants are interested in doing business I always heard the term doing business you know what I was first learning about like auction market theory and I'm like oh yeah doing business we're we stand up business we stand up business the profile no but the volume profile tells you where that excess and excess is basically a rejection right lack of volume you know where you have like a big volume distribution you know fat volume you create a push away from that and then that's immediately rejected what that leaves behind is not just a low volume node it just leaves behind this tail or this little taper of excess volume where it's like nobody wants to do business there at the at the current time whether it's yeah yeah that's how I always feel like that that shows up to me and that's powerful information because when you when you're able to recognize excess in the market that tells you something significant has changed in the time frame that you're working in right and so if we're turning up and we have this huge push to the upside that creates some excess in the volume profile and then a big wick on you know like a can't just a can't stick chart that might be a clue for you to you know take some profit if you're long or maybe look for a short trade or something like that or vice versa when we're you know selling off so the the excess and the volume profile are the taper and the volume profile where you know we don't do a lot of business that's a very powerful piece of information I don't if I have I've predicted that to that that was those well said how do you and I say something and AJ has nothing to say I know that I nailed it so let's let's talk about we're so would you say that you were kind of a little bit were you talking about the context of leg to legs a little bit like the excess and a leg both I think yeah you know in your time like whatever time frame you're looking at I think that leg to leg intraday you know to be honest I look for more absorption than I do excess on a leg for like it's exactly what I want I'm glad you said that because that's what I wanted to go into yes you just talked about how you one of the things that you can use for to gauge like a lack of interest is a taper but also sometimes at the higher low of both you know intraday like to legs or even on the session or you know whatever time frame you want you actually don't get see an excess at the higher low you actually see a large like kind of a large build almost so why don't you kind of want to speak to that Leo since you did the first time around so I mean that really goes back to each other today is this like you guys go to the quick therapy we just we love we love volume profile we do love it we're gonna excited no so I mean that really just goes back to or at probably our last episode on Delta right so you know Delta takes time and volume to occur so it's not like I've said this before I'll say a thousand times Delta like absorption based on Delta or just pure absorption I guess absorption it is a process right it doesn't it's not any vent right like in like a huge spike that comes you know immediately back down or back up that's an event right like you know we talk about how like a good low or a good high is made that's an event based thing absorption is a process where I know if you're looking at a leg to leg profile from like a swing high to building into a low that absorption would be we are actually building volume in that low of that leg and in that leg you're also looking at a Delta profile and you're seeing that lots of let's say you're coming let's say you're going down right and you're looking at a leg to leg from the swing high to where you're currently at if you're looking at the volume profile and Delta together then what you'll see an absorption sequence is a lot of volume is being built and then also a considerable amount of Delta which we covered in the last episode being built as well and so you're not necessarily looking in that scenario on a leg to leg profile for or a taper or a lack of interest but you're looking for potentially absorption of one side or the other to where when price starts to move against that large volume or and Delta that you want to trade in the opposite direction of it so a leg to leg I'm not necessarily looking for like a great taper necessarily more than I am looking for buyers absorbing you know cell pressure or cellar is absorbing by by pressure etc no I definitely agree I think I think looking for absorption is the is the move as the move on the leg to leg I like like you said I just think tape like kind of tapers to an excess is something I want to look at like a higher higher time frame I've just absorption is such a I think a key key um execute I guess execution signals the right word for it um it's like it's the the activity that we see to get into a trade I think it's something that is one of the main things all all of us look for so just really leaning on the leg to leg profile for that is super helpful and we I don't know if do you have the leg to leg profile on your dom two or is it or do you have it on like where do you use mine's dom okay so let's have down the ribahoy man I'm down with the leg to leg stuff he's got he's got he's got he's got secrets it's on my doms I have a leg to leg volume profile and delta on the dom and then I have a leg to leg delta and volume profile on the execution chart mm-hmm oh and then I on my higher time frame I have a leg to leg based on the balance areas from autopilot so you have almost as many as I do at this point sounds like no no no I don't have 37 I just have you I don't have 37 I've got like I don't know somewhere between a half and a full dozen but yeah I think they're helpful on both the dom and the execution chart my my like the dom ones for me are like the smallest you know for NQ I think they would reset every 15 to 20 point rotation for NQ for ESM using seven points and on the execution chart you know we set it to that to the average rotation so that could kind of that varies based on the on the environment right so yeah yeah okay so we're literally only 30 minutes in and we have one day of time to go through some more stuff so why don't we talk about some some strategy stuff I mean I just gave away some huge huge alpha now escape leg to leg look for absorption okay so there was like hardly a better example other than today of a good RR trade with using volume profile and I don't use the leg to leg volume profile at all like you guys do this was just general RTH volume profile this is a stoke counter move here let's hear it yeah I mean that's to I use leg to leg delta but I don't use leg to leg volume profile I don't know it's too much hit to look at you guys do it tell us about tell us about your your setup from today so you're looking at a possible trend day right today is October 9th you get this big push out of 20,000 315s big giant push whenever I see a push that big I'm definitely putting a view up anchor on it and just try to see what it's going to be up to but it got to 375 380 and it wouldn't leave and the combination of like the volume profile and the delta profile building up there there's no reason not to buy that like everyone is buying it and your your R is extremely limited and control like you can take a tight stop there and be wrong if you're buying the top but like I don't know that there was a ton of opportunity at the top there often is and a j top in that a long time ago to buy the top whenever I can see it yeah but yeah I mean that was a good example of like leaving value creating a instead of creating an excess it creates a build above a breakthrough spot so I guess like looking back at that daily profile it's like 20,000 350 to 20,000 370 is kind of the and there's some single prints in there as well um but that's oh yes that's yeah that's absolutely 100% and so like as soon as I'm on the uh on the live stream today that spot there you go so yeah it's like I mean obviously this is going to be a spot to be revisited retested there's tons of ways to play spots like that when you're looking at a volume profile when volume builds above a spot that it quickly left it's it's it's I don't know that that's how you can use that to come up with trade ideas again and for those that are listening it's October the 9th so it's the FOMC minutes day if you want to go look at a volume profile chart okay so um you kind of brushed into a little bit of you know detail there with the low volume node I think AJ is a low volume node conno sewer so AJ can you describe how you treat low volume nodes on a low time frame and high time frame co I'm just kind of curious sure your perspective is there so the development of the volume profile over the session it's obviously something that's actively going on right because prices up orders are being tracked turns acted as constantly um so the way that the volume to the volume profile develops over time it changes and and as positions come in to a certain area um you create like we said areas of high volume and areas of low volume so the way that I look at high volume uh low volume nodes I guess there's a couple of ways to look at it um in both in both examples um do the the assumptions as there's no there wasn't a lot of interest in trading there for one reason or another so uh LVN can be created created let's say the market has like an open auction so we chop around building a high volume node off the open and then eventually one side breaks creating some kind of impulsive move um let's just say it's to the upside because that's what happened today and but prices and continue uh forever eventually it pauses and starts to put in another high volume node but like above that first one and eventually what's going to happen it's going to chop around theoretically and in the middle of two distributions in the middle of two high volume nodes you're left with this little uh low volume node and what you'll notice if you were to like take your mouse cursor and like put it on a low volume node between uh two distributions um what are two things have happened there um basically this area would have acted as either supporter resistance so price came in to that spot from the downside it couldn't get below it or price came into it from the upside it couldn't get above it or it did move through that LVN but like it happened so fast there there was really no transactions that that took um that took place there so the LVN is basically going to be a spot that you know is gonna can you know that may hold as supporter resistance when it comes into it or it's going to move through that area very quickly and that logic applies to any time frame from from like to legs to sessions to to multi session profiles um you can see that price always has some kind of reaction at an LVN either either from a testing it or moving through it very quickly so you can use those LVNs as and I this is what I do I I'm often looking for them as kind of starting points um for my for a lot of my trades because yeah I want to be um I want to be positioning myself at a spot that I think is likely to be defended by one person or another and when an LVN has developed I've already it's already been established that participants have deemed this kind of an important area to hold one way or the other and if and it gives me something visual that I can lean on for my entry and I can use the rest of the profile to kind of define my risk and in place might stop um yes want me to keep going do you want jump in on anything yeah I the only thing I have to add to that is that like it has been extremely beneficial to me to not lean on the LVN itself but instead to find some spot that like was originally the the spot that was created as resistance and then see a reaction off of that spot to see if that's a true LVN that's going to hold for the day um for the week etc because often I see like volume profile people put out stuff that it's like uh yeah like lean on this LVN this LVN is a thing this is this is where no stuff has been transacted but price will chew down there and try to wiggle around a little bit so you can't lean on the LVN itself as a stop you need to see price go in there and then reject and then come back out of it and then use that as your your stop spot maybe I think what you're saying is very specific to NQ maybe I think I think I think I think he is listen listen listen let's hear you can't turn into an ES apologist after two weeks of trading ES I'm simply I'm simply today I'm simply conveying a nuance that I have observed and other you know other folks have observed this as well um listen NQ for sure what's the issue have I have an entire I have entire separate ES discord that you guys aren't aren't you aware of this point of it just out of a second family does it have a cool emojis literally don't care no with I only care of this because they're ES traders they're like old school memes they're not on pepe's yeah no I think I understand what you're saying and it's definitely true for NQ for ES you can lean on them a little harder um but and that there's like obviously some people in here don't trade ES or NQ so I think looking at your specific market and you know finding if there's a there's a bit of nuance there um in terms of how the volume profile is treated and that that's that's something you don't have to have to look at because we can't speak for every market you you bring up a decent point that like you can't just lean on an LVN because to be fit like full disclosure when I first like learned volume profile the way well that's the person I learned from profile with from I've learned volume profile from like a bunch of like old video old course videos but then the person that taught me how to treat around them basically had me marking them on my chart with a line those were my levels and you just fucking fade price every time it comes into one of those LVNs and that that's not quantitative that was not that was not the thing to do so I think your point Stowe is that like you can't just like oh great they've painted the tape told me when LVN was like that's my system now I feel like I just trade LVNs it's not that straightforward yes um but yeah I think they are use even if you're not going to trade around them seeing how price reacts at them is going to give you useful information one way or another and please go back and look at today October 9th and just see how you know price began to react at 375 380 like it couldn't buyers were just there the bid was fucking crazy yeah like that's the stuff you have to yeah that's the stuff you have to fucking lean on um in context it's not just the LVN itself I guess is what oh so all of a sudden context matters do oh the context is always better 100% I agree with you think that so many people are looking for a signal without a context that applied there's nothing on the volume profile by itself that is the signal on its own but that's what people people want a signal well people want the easy way out and people want the whole grail baby yeah the volume profile is something that is that every single trader and their grandmother has access to there's no there's no like quantifiable edge and simply looking at the volume profile you got to put it together with with context um we use obviously order flow to supplement that there's so many things that you can use with it it's but it's a good place to have a foundation can I make a quick public announcement on that yes um if you're listening and you're 11 episodes in and you're looking for the holy grail um I have bad news we don't have it um actually we do have it yeah I'm just gonna say actually holy grail if you want episode 20 if you want access to the holy grail of trading it's gonna cost you a modest 7999 a month on WAP which is coming up soon um and you will never for 7999 a month you will never miss a single trade again so please sign up wow there it is well we couldn't get any sponsors so now we have to pretend that we are a few words there we go cool so we did we did LVN's what about their beautiful brother high volume nodes or you mean disgusting brother disgusting brother indeed all right so yeah yeah yeah so high volume node is where lots of interest and uh activity happens and that's where you have um the most frustrated traders you know a lot of traders are looking for directional moves right you want price to go from A to B you want to add you want to dead it uh and that you want to take a directional bet you want to take a directional move and get you know 100 points 200 point move and you or what's the equivalent a day like five points you want a five point move or something like that yeah um brother points are two and a half times as strong so it's technically like okay okay so anyways AJ um you know trying to justify his yesterday dude your handle is ESF Leo I don't know what you're like bitch to me and I learned my lesson I learned see this is called learning moving on shows you have no loyalty he in this game right I have loyalty is your or yourself out to any tick my loyalty is to the green back my loyalty is to the green back okay um anyways a high volume node is where everybody wants to do business right it's the most interest and yeah I think the interest is something we'll probably have to come back to at some point but um there's that's where price is kind of it's a magnet right it's hard to get away from that um on a high volume node you'll also have two other areas that you want to pay attention to which are the edge of the high volume node to the upside and the the edge of the high volume node to the downside and so those would be hvn edges essentially what usually happens until we have a break is we'll test the upper edge and we'll come back in the middle and we'll test the lower edge and we'll come back in the middle and that's basically like a balance trading to a tea very simplified um and then when we break that balance that's when new value new we'll find a new hvn essentially and so usually what happened I know what aj looks for on trend days is we'll have an hvn we'll build a lot of volume and then we'll have an impulsive move away from that hvn it will leave behind it in a low volume node um just by nature of what happened and it will build volume above that old hvn and so what you know aj is looking for a lot in those trend type moves as we have a high volume node we build volume we build interest we push away from it we leave a low volume node behind us we create a new volume node hvn and then we do that process over and over and that's basically what you know what um well that's what a trend day kind of looks like if you looked at the volume profile by itself yeah um so yeah high volume node lots of interest a lot of chop around it um when we leave a high volume node it's not the time to be revert trading reversion error trading right that's good i mean you can look at like a i know aj really likes yes so i'd like to give a yes example um because it's often a lot cleaner and easier to see but um there was this uh 5785 dick like all week all week this the somebody just piling in doing a bunch of business and whenever i see that like it's extremely annoying like you understand this is going to become a magnet somebody's obviously trying to do like a bunch of contracts somewhere and we talked about before we don't know what they're trying to accomplish if they're sellers if they're buyers it just becomes an area of congestion and annoyance and there's no really there's no way to know which way that thing is going to break um but that becomes like an area of okay a bunch of people a lot more money than me are piling into a spot and that area ended up being uh i guess it's like 5780 was the point of control for the last five days but i mean same general area and then we left that to the upside and when you leave that to a direction then you can kind of have a a clue of i guess maybe their intention but that doesn't really matter it's just like that's where price is moving from there so you can now you're in price discovery mode instead of price suck into this singular level mode and i mean there was so many just heard me turn we're gonna have to get into it at some point price discovery a little price discovery that sounds super interesting market emotion market in i think what we should do is we are one hour in we're at a perfect spot to wrap this up and assume that we're gonna do another episode on volume where we dive into some of the higher time frame concepts like overlapping volume balance imbalance this this could be like a three-part series yeah i'm just like this is like season two volume profile it's fucking tape episodes it's free i don't know i mean what what do you want no for sure just like we have to cover it we have this stuff happens with uh whenever i think about like any of these concepts i'm like fuck how did i learn so much about this dumb shit and how do i explain it to anybody well i mean there's a guy that's read like four books on just market profile i mean the same thing is a bookable to volume profile yeah for sure absolutely and he's still selling courses god bless him we're next we're next that's right yes the next nine episodes of this volume profile course will be 49 99 79 79 what hey actually it does cost money how much is your Spotify subscription to have five bucks a month um this podcast costs me 39 bucks a month wow wow front of back yeah and you're getting paid for that certainly not because we don't chill shit so we start to change we start to know where to leave well here's a thing it keeps it keeps it very if it keeps it very even keeled keeps like you know we can say whatever we can say whatever we want i mean we're doing okay for free for a free thing there's lots of great information being shared whether you like it or not better like it it's um it's it's certainly worth it to me to pay 30 bucks a month to um not have to give a fuck so that's that's that's enough to buy me some peace of mind i like it if you're listening to this and it's um you're worried about so paying 30 bucks a month yeah if you're ready to hang up listen just get just give us a five star review tell us how great we're doing and uh move on and listen to the next episode that's all it takes to send AJ your credit card information (upbeat music)