Great video, I think too many people are interested primarily in high volume nodes/POCs you're the first person I've heard talking about the significance and explaining action around gaps
That was interesting and you are correct. Every volume profile teacher teaches that the low volume nodes are areas of quick pass thru with little resistance and to look for those areas of support/resistance only at the higher volume nodes. I have to rewatch your video and take note. Thanks!
What a nice, easy to understand explanation! And thank you for showing the indicator settings too. Well, I'm off to explore your channel. And don't worry, I won't forget to subscribe. 😉
I agree that market needs liquidity to go through the volume gaps but price takes support or resistance at high volume candle clusters only, because that is where buyers and sellers are having a rigorous fight
@@FattyTrades I went back to your vol. price videos. I'm watching each of the videos. I'm an audio-visual learner so it's helping me. Again, thank you!
These "low volume gaps" that your referring to are area's where market makers had to mitigate there positions. Whenever there is a imbalance between buyers and sellers the market makers are buying/selling to complete orders then they use different orders to move price back to those zones to fill in the imbalance. If you go to this video at roughly 10:18 price didn't bounce from that zone because it was a "low volume gap" It dipped to that zone because of the imbalance from the over buying. So market makers are holding there, people who wanted to buy or sell may not have been able to because of sharp movement. So that means there is liquidity down there that market makers want to grab. Also again if you take time directly to 10:18 you see how price bounced and then went up to your next "low volume gap". It went to that price level because of the sell imbalance at 10:55. If you see a high volume node and a low volume node right above it that means someone with money is holding it above or below that level. Market makers move price to where there are the absolute most amount of orders at all times. Orders are what drives the markets. Nothing else matters. I've watched a few of your videos and I'm going to keep watching because I see potential in your content and knowledge. But if I'm being honest I see a lot of adding indicators and finding charts in replay mode that makes your setup look better than it really is. If a stock is trending up that just means it's done running downside liquidity and it's going back up and it's going to trend up until it hits the final liquidity pocket that it was targeting before it even trended up. The final reversal spot is usually a imbalance and a area where people have been trapped for awhile and they want to clear up some liquidity and have more order flow. Like I said though I'm going to keep watching and I subscribed to your channel and look forward to more content but as someone who's been trading this concept for 5 years I'm not seeing what your seeing. I spent a couple years on this method and it failed and that's when I learned it's all about orders and filling imbalance. Sorry for being a douche. I hope I didn't offend you. Cheers.
Definitely did not offend, this video was meant to be a super short video to show you can use LVN/HVN's to get insight into the response, but you are totally right, when you pair volume profile with order blocks, FVG's and other smart money concepts, that's where it truly shines. I get into that a lot in my later videos that are much longer. I always appreciate the feedback :-)
I think the PVP you are talking about is after the fact the day is closed but as the day progress of the day of trading, those volume profile hasn't been built yet.
Use previous day, previous week, or set the session to hour or 2 hour when backtesting. All can work. Also can use a rolling point of control indicator. I find live profiles harder to be exact. Volume of previous ranges I find more predictive.
Question: When you're trading options and your plan is to trade 50 or 100 contracts, do you enter that trade with 20 contracts and scale up to 50 to 100 contracts or do you start out with the 50 contracts or the 100 contracts? I know you can do either or, but I'm asking "What do you do?"
Thank you. I've been studying this and this makes sense. Prior to this I've been marking one or more daily vPOC from multiple daily VP. They get respected at times but not consistent, but they represent high volume areas. But now I'm looking more towards this at the gaps on the lower TF and across a period. Would you say this would be a better way to identify "supply" and "demand", since its an area of lack of liquidity. S/D is often taught with identifying down bars as demand and up bars as supply where price moves away from (and less times do is fresh)... Which works at times...
Yes that’s exactly correct, those liquidity gaps form the basis of what we hear commonly referred to as supply and demand and are very useful reference points on higher time frames as well. I’m going to make a follow up video about how we can use prior day and week profiles to identify all the key areas that we can expect price to react for the upcoming days/weeks.
@@FattyTrades 1) Noticing that the Low liquidity Gaps are more consistent levels, than Periodic (say Daily) PoC (highest volume node) in terms of price reaction. However, sometimes PoC react (like you've mentioned for BTC, but that is a VP for a larger move indicating where most volume has been traded. Is the conclusion to use both and the PoC measured from a larger range of time in a significant move area 2) I see sometimes the low liquidity gaps act like volume vacumns - ghost zones, where the price just moves quickly one way or the other. How do you determine whether it's a real level with resistance vs just a zone where price can move through quickly up or down 3) In S/D the levels once tested one or multiple times could be considered "used", is it the same way for low liquidity gaps after they have been tested or the price trades through - that less likely they'll be come relevant? Or, will we actually see the VP fill out the volume gap with volume if price / volume spends enough time there.
Think of it this way.. where you see lots of volume you have an agreement on price. You know you have an agreement because. Many people chose to open and close their orders there (volume) In the low volume nodes (lvn) You have a disagreement in price... Because when the prices were up for discussion only one side saw it as a place to open and close their orders. If it came up to an area and rejected it mostly sellers saw that as a place to sell.. now some buyers also saw it as a place to buy because you need a buyer and a seller to transact and to print on the chart. But, more sellers saw it as a place to sell them buyers that's why the price did not stay there very long because the sellers overwhelmed any buying at that price. And pulled away. You only make money in the market when there is a disagreement on price. Because if you're in an uptrend and you want to buy you're only going to get your order from someone that wants to sell, so that someone that wants to sell has to believe that they're getting a good price to sell, and if they believe that then they also believe that the price is not going to go much higher. If they thought it would go much higher they would wait to sell and you would have to buy higher. So you would do best to Target the areas of disagreement and price and stay out of the areas where everyone else is trading trade at the extremes.
I have been using fvg strategy It has been working for me plus it is easy for me to understand. My only issue is when it tries to fill in the fvg. At times it does a fake out or stops me out. I have to use ema to see if it is going to pass the FVG. At times it is easy to read and a lot of times it is hard to read. Where it might go once it hit the FVG. I know there not a magic indicator out there..but I want like to find something that is easy for me to ID where it might head before placing a trade..can this indicator help me?
Try 1m charts with 30 bar profiles or 5m charts with 48 (4hr) profile. Or whatever time frame you want, but youll want a high TF and a lower TF (for entry).
If the low end of a volume gap or inefficiency at $10.10 and the top of the gap is at $10.40. The idea is there’s little to no liquidity between those 2 price points, if I market buy at $10.10 (market orders move price and are matched with limit orders) and there arent any limit orders until until $10.40, wouldn’t price just shoot up to the next limit sell at $10.40 and match my market buy?
It will if it brings enough momentum with it, those low volume gaps require that the buyers/sellers bring enough pressure to essentially push right though it. When trading with volume profile you’ll find that often times it looks like we are about to push right through the low volume gap and then just fall off, back down to the base of the high volume node area, stopping at the gap below. Check out the term, “volume shelf launchpad”. It’s the best term I’ve heard to describe this behavior and it happens all day across all time frames. Typically when we get through a volume gap, it leaves behind a fair value gap, but it doesn’t happen easily without the buyers or sellers bringing their own momentum/volume.
@@FattyTrades Thanks for the reply. I still struggle with understanding the actual mechanics of how price actually moves on exchanges esp. with relation to volume because for every market order there's an opposing limit order on the other side. If there's more buys than sells, then market orders are matched to the next highest price. So how can price move up on low volume? We're told that price rising on low volume is bearish, but if it's due to lack of sellers/thin orderbooks...I would think this is bullish because there's no sellers resisting.
@@jroon5146 i think price can go up on low volume and its considered bearish because heavier sell orders will skew the bid ask orders a lot more easily to said lower price
Excellent video, I’ve watched a few times. Wondering: are there ways to determine which gaps and ledges might be the most significant? Some ledges are definitely steeper than others. Some volume gaps are shallower than others while some are found on high volume mountains. I’m assuming the low volume gaps that are the shallowest could create the largest reactions (especially when found on larger timeframes, like 4200-4240 on ES, for example). I’m learning more with experience of watching price reaction at the various types of gaps/ledges, just wondering if you had any comments 😁
Yeah exactly, higher time frames, gamma exposure, and dark pools can help us determine the best levels & when those ledges line up we can exact price to have big reactions. Also, value areas or PoC’s from days prior tend to fall right on these key levels where MM’s will react. It’s really a matter of trying to figure out where smart money algo’s will inject the most volume pushing us higher or lower depending on overall sentiment & trend direction.
That RS hedge pressure level literally takes all the difficulty out of it finding where they will enter in. I’ve never seen anything like it. We can use Tradyfics to find the plays that are most bearish or bullish then use RS to know exactly where big money will enter in.
Nice video bro I'm expanding my own series on vp, so I'm watching other videos so I'll have others to recommend after that watch mine. You're top of my list, we use it similarly and you're confuse l concise nice job
Awesome! Outside of value areas and ledges, I’m going to do a video soon on using volume profile to identity before the day begins if we will likely be a trend day or a range day (along with macro economic data releases coming up)
I enjoy every video you make... Can you try to talk Tradyticks and ask him NOT to implement "Journal"? This is totally none-tradable feature ... There are dedicated providers that exist for this purpose ONLY. And do this pretty well...
Unfortunately, I don’t have much say in what they focus on for their upcoming features, I’ve been trying to get a dedicated Russell 2000 version of Market Net Flow along with deeper insight into the exact levels MM’s will step in (I.e. hedge pressure). At least it’s something else that can be used in one place to avoid needing a separate provider for complex journaling features. I might dump my excel sheet depending on what they come up with 😉. They are very fast so it probably won’t take their focus for very long.
Roughly 30min in on this video. Closer to the end I show my fav way of setting up TOS & Tradovate to match what I was showing in Tradingview Nailing Trades with Volume Profile - Volume Price Analysis - Part 3 ua-cam.com/video/jFHTTcHJGko/v-deo.html
Kevin...I'm on a trial of TradingView to try out some of the volume profile stuff and playback features you highlight. I've been playing with it for 24 hours now and here is what has me confused...I can send screen shots if You Tube will let me...on Trendspider, the daily candle for SPY on Friday is a hammer and the open, high, low, close would makes that right. When I look at the daily chart for SPY on Trading View, Friday's candle is not a hammer. The OHLC number data in header is correct, however, the daily candle itself is not representative of those price ranges from Friday. On my screen it doesn't look like a hammer at all. Any way I can send you a snapshot of what I'm seeing? When you look on a daily chart in Trading View does Friday's candle look correct to you? Wondering if I've got something set up incorrectly.
@@FattyTrades I've sent the question off to Trendspider and will probably hear back on Monday. I've not noticed this before, but it can realllllly give you a misleading daily candle if the open price is off by several points. I'm playing around with volume profile and layering it with the Saty ATR levels that I've been recently using to see where/if they coincide. Thanks for all the great videos you put out; I look forward each weekend to getting caught up on them and taking notes.
@@karenlehmberg1212 let me know what they say, I’d be curious about the answer. Where was their open? Also, be cautious with the default style of trading you see so often when an indicator or individual encourages breakout trades via “puts < $XXX” or calls > “$XXX” like SATY ATR does. I only caution this from both personal experience and learning from some incredible pro traders. When you watch how hedge funds & bank algo’s trade (which we always want to piggy back on) they inject liquidity at certain price points. So if the underlying flow & gamma exposure indicates market makers will be bullish, we will typically see price pull back to certain level (SPY on 8/2/22 for example - roughly 406.80) at which point we clearly see hedge funds inject a ton of volume and rapidly push price higher. This means, if we are bullish we’d want calls as SPY pulls back into 406.80, we hit “hedge pressure” with candle and volume confirmation, then enter our calls. If something indicated to take puts < $407 that day, it would’ve cost you a lot of money. The same is true for puts. On SPY 8/5/22, we saw a clear gap/seller imbalance form at 413.63 from macro news that caused a massive drop. This was likely to fill due to market auction theory then hold, therefore optimal put entries were as we came into 413.63 and showed signs of rejection. If someone said calls over $413 we would’ve been burned. I never ever want to knock someone’s style, as long as it’s working for them, just something to keep in the back of your mind about how smart money algo’s work. Often times chasing intraday breakouts are the opposite of what we should be doing. Hopefully that makes sense. I did a pro trader framework video about this concept but plan to go much deeper into “hedge pressure” in my next videos. Here is that video I’m referring to. For sake of the video not being 4 hours long, I had to leave a lot out. However, I did a lot of videos on figuring out daily sentiment. The next videos will focus on finding those best entry levels that we can anticipate these big money algo’s triggering at. ua-cam.com/video/EHb0LFYS2u8/v-deo.html
@@FattyTrades So, here was the issue...I thought (incorrectly) that if I was looking at a daily chart that it would show me a candle shape representative of the market hours trading day. Since I use and look at extended and premarket hours, however, on my smaller timeframe charts, my setting is "include extended hours". So, because of this, the candle I was seeing on the TS daily chart included all the pre and post market activity and rendered a very different looking candle than what I was expecting. So, I have to be sure to turn that OFF when I want a daily chart. As to the SATY indicator, I never use it for the calls/puts triggers. What I have found, however, is that since it autopopulates the close line for the prev day and 1/2 an ATR above that and 1/2 an ATR below that (along with some other levels such as full ATR), it's those levels that I've found often come into play on SPY. On your comments above, I'll admit that ever since the GEX total per ticker disappeared on Tradytics (I'm a neophyte still with GEX) I've been unsure how to judge "when market makers will be bullish" based on GEX. I suppose in that case you'd recommend we look at the highest gamma levels for the ticker relative to existing price. Honestly, I loved that little easy GEX total as a quick gauge but can't seem to find it anywhere now. I always look forward to any content you put out as it's so thorough, thoughtful and well paced (and you masterly weave in the most important elements of price action/volume).
@@karenlehmberg1212 ah okay that makes sense. I’ve promised and failed to deliver a video on my tradingview settings many times now but need to get to it soon. You just made me think of it taking about SATY - So one cool trick you can do with price action is calculate the half way point between the open of the trading day and the close of the day prior. I recently learned this referred to as the half gap. This will often times become a level we struggle at. You can watch the main SPY sectors & heavily weighed tickers as we approach this level to determine the likelihood of breaking it as we approach, in combination with price action & volume. Also, if the half gap is very close to prior day close and same day open (within .25 cents roughly) if often means we will likely have a mean reversion day, especially if price is between key levels on higher time frames and there is an upcoming catalyst the next day. This is a good time to avoid SPY & look at other things. August 4th, 2022 was a great example of this. The open was very close to prior day close, the half gap was within .25 cents. We had a massive melt up losing momentum as we approached major levels from the daily (previous chop zone from late May/early June) and the next day was NFP & Jobless claims data release - the perfect storm for going no where and creating a very difficult trade day. We also see this often the Tuesday before FOMC minutes.
Great question! The key is to use it in conjunction with price. I am hoping to cover it very soon but when you combine price concepts like fair value gaps & balanced price ranges with it, it'll help you determine the areas that'll actually hold or not. It's also important to be trading with the current market structure. I had to take some time away from social media right after making this video, but i started getting into those nuances in later vids. You might find this one very helpful. ua-cam.com/video/3TiZtz_cZ80/v-deo.html
You won't know. I like to use 15 minute charts with daily (session) profiles with a 5m chart with 48 bar (4hr) profile. The larger profile is for my trade bias and the 5m for entry. But volume profile doesn't give much context to trend. Study smc market structure.
That can happen at times, depending on where a service gets their data from it can display differently, especially on macro economic news days like Friday.
I had to take a step back from the social side of trading when my son was born 4 months ago but am finally getting back into the swing of things. Hit me up on discord - FattyTrades#2424 - I won't be able to get to the message right away because I'm playing catch up but would be happy to chat.
Actually - if you look at those peaks (spikes) and draw a box around those....you will see consolidation....and when it breaks that...then a move happens.
Great video, I think too many people are interested primarily in high volume nodes/POCs you're the first person I've heard talking about the significance and explaining action around gaps
Agreed, the low volume nodes help point out those key fair value gap areas which are far more useful in my opinion.
That was interesting and you are correct. Every volume profile teacher teaches that the low volume nodes are areas of quick pass thru with little resistance and to look for those areas of support/resistance only at the higher volume nodes. I have to rewatch your video and take note. Thanks!
Great video man!!! Could be amazing if you show us (the noobs) how to plan setups!
I love how you show the historical and then “in play” too. Thanks 🙏
Woohooo, I’ve been waiting for this one for awhile! 😎🚀
Excellent lesson! Thanks
What a nice, easy to understand explanation! And thank you for showing the indicator settings too. Well, I'm off to explore your channel. And don't worry, I won't forget to subscribe. 😉
Great work Kfatty!
I agree that market needs liquidity to go through the volume gaps but price takes support or resistance at high volume candle clusters only, because that is where buyers and sellers are having a rigorous fight
great. thanks
Awesome video thanks 🙏
thanks
Another great video
Great video ! 👍🏽
Thank you! I'm going to go find the other video.
Which one are you looking for?
@@FattyTrades I went back to your vol. price videos. I'm watching each of the videos. I'm an audio-visual learner so it's helping me. Again, thank you!
Great! If you have any questions let me know!
These "low volume gaps" that your referring to are area's where market makers had to mitigate there positions. Whenever there is a imbalance between buyers and sellers the market makers are buying/selling to complete orders then they use different orders to move price back to those zones to fill in the imbalance. If you go to this video at roughly 10:18 price didn't bounce from that zone because it was a "low volume gap" It dipped to that zone because of the imbalance from the over buying. So market makers are holding there, people who wanted to buy or sell may not have been able to because of sharp movement. So that means there is liquidity down there that market makers want to grab. Also again if you take time directly to 10:18 you see how price bounced and then went up to your next "low volume gap". It went to that price level because of the sell imbalance at 10:55. If you see a high volume node and a low volume node right above it that means someone with money is holding it above or below that level. Market makers move price to where there are the absolute most amount of orders at all times. Orders are what drives the markets. Nothing else matters. I've watched a few of your videos and I'm going to keep watching because I see potential in your content and knowledge. But if I'm being honest I see a lot of adding indicators and finding charts in replay mode that makes your setup look better than it really is. If a stock is trending up that just means it's done running downside liquidity and it's going back up and it's going to trend up until it hits the final liquidity pocket that it was targeting before it even trended up. The final reversal spot is usually a imbalance and a area where people have been trapped for awhile and they want to clear up some liquidity and have more order flow. Like I said though I'm going to keep watching and I subscribed to your channel and look forward to more content but as someone who's been trading this concept for 5 years I'm not seeing what your seeing. I spent a couple years on this method and it failed and that's when I learned it's all about orders and filling imbalance. Sorry for being a douche. I hope I didn't offend you. Cheers.
Definitely did not offend, this video was meant to be a super short video to show you can use LVN/HVN's to get insight into the response, but you are totally right, when you pair volume profile with order blocks, FVG's and other smart money concepts, that's where it truly shines. I get into that a lot in my later videos that are much longer. I always appreciate the feedback :-)
I think the PVP you are talking about is after the fact the day is closed but as the day progress of the day of trading, those volume profile hasn't been built yet.
That's what annoys me about these volume profile videos. "hey, look how price rejected the level" days, weeks, months after the fact 🙄
Use previous day, previous week, or set the session to hour or 2 hour when backtesting. All can work. Also can use a rolling point of control indicator. I find live profiles harder to be exact. Volume of previous ranges I find more predictive.
thanks for sharing, it's like in the NFC Community
You got my sub bro
Question: When you're trading options and your plan is to trade 50 or 100 contracts, do you enter that trade with 20 contracts and scale up to 50 to 100 contracts or do you start out with the 50 contracts or the 100 contracts? I know you can do either or, but I'm asking "What do you do?"
what is the recommended row size for SPX and similar products?
Interesting. I put my zones on the high volume nodes rather than low, maybe I’ll try low
Thank you. I've been studying this and this makes sense. Prior to this I've been marking one or more daily vPOC from multiple daily VP. They get respected at times but not consistent, but they represent high volume areas.
But now I'm looking more towards this at the gaps on the lower TF and across a period.
Would you say this would be a better way to identify "supply" and "demand", since its an area of lack of liquidity. S/D is often taught with identifying down bars as demand and up bars as supply where price moves away from (and less times do is fresh)... Which works at times...
Yes that’s exactly correct, those liquidity gaps form the basis of what we hear commonly referred to as supply and demand and are very useful reference points on higher time frames as well. I’m going to make a follow up video about how we can use prior day and week profiles to identify all the key areas that we can expect price to react for the upcoming days/weeks.
@@FattyTrades
1) Noticing that the Low liquidity Gaps are more consistent levels, than Periodic (say Daily) PoC (highest volume node) in terms of price reaction. However, sometimes PoC react (like you've mentioned for BTC, but that is a VP for a larger move indicating where most volume has been traded. Is the conclusion to use both and the PoC measured from a larger range of time in a significant move area
2) I see sometimes the low liquidity gaps act like volume vacumns - ghost zones, where the price just moves quickly one way or the other. How do you determine whether it's a real level with resistance vs just a zone where price can move through quickly up or down
3) In S/D the levels once tested one or multiple times could be considered "used", is it the same way for low liquidity gaps after they have been tested or the price trades through - that less likely they'll be come relevant?
Or, will we actually see the VP fill out the volume gap with volume if price / volume spends enough time there.
Think of it this way.. where you see lots of volume you have an agreement on price.
You know you have an agreement because. Many people chose to open and close their orders there (volume)
In the low volume nodes (lvn)
You have a disagreement in price...
Because when the prices were up for discussion only one side saw it as a place to open and close their orders.
If it came up to an area and rejected it mostly sellers saw that as a place to sell.. now some buyers also saw it as a place to buy because you need a buyer and a seller to transact and to print on the chart.
But, more sellers saw it as a place to sell them buyers that's why the price did not stay there very long because the sellers overwhelmed any buying at that price. And pulled away.
You only make money in the market when there is a disagreement on price.
Because if you're in an uptrend and you want to buy you're only going to get your order from someone that wants to sell, so that someone that wants to sell has to believe that they're getting a good price to sell, and if they believe that then they also believe that the price is not going to go much higher. If they thought it would go much higher they would wait to sell and you would have to buy higher.
So you would do best to Target the areas of disagreement and price and stay out of the areas where everyone else is trading trade at the extremes.
I have been using fvg strategy It has been working for me plus it is easy for me to understand. My only issue is when it tries to fill in the fvg. At times it does a fake out or stops me out. I have to use ema to see if it is going to pass the FVG. At times it is easy to read and a lot of times it is hard to read. Where it might go once it hit the FVG. I know there not a magic indicator out there..but I want like to find something that is easy for me to ID where it might head before placing a trade..can this indicator help me?
Try 1m charts with 30 bar profiles or 5m charts with 48 (4hr) profile. Or whatever time frame you want, but youll want a high TF and a lower TF (for entry).
What is the link for previous video as reference?
If the low end of a volume gap or inefficiency at $10.10 and the top of the gap is at $10.40.
The idea is there’s little to no liquidity between those 2 price points, if I market buy at $10.10 (market orders move price and are matched with limit orders) and there arent any limit orders until until $10.40, wouldn’t price just shoot up to the next limit sell at $10.40 and match my market buy?
It will if it brings enough momentum with it, those low volume gaps require that the buyers/sellers bring enough pressure to essentially push right though it. When trading with volume profile you’ll find that often times it looks like we are about to push right through the low volume gap and then just fall off, back down to the base of the high volume node area, stopping at the gap below. Check out the term, “volume shelf launchpad”. It’s the best term I’ve heard to describe this behavior and it happens all day across all time frames. Typically when we get through a volume gap, it leaves behind a fair value gap, but it doesn’t happen easily without the buyers or sellers bringing their own momentum/volume.
@@FattyTrades Thanks for the reply.
I still struggle with understanding the actual mechanics of how price actually moves on exchanges esp. with relation to volume because for every market order there's an opposing limit order on the other side. If there's more buys than sells, then market orders are matched to the next highest price.
So how can price move up on low volume? We're told that price rising on low volume is bearish, but if it's due to lack of sellers/thin orderbooks...I would think this is bullish because there's no sellers resisting.
Do you have a video explaining this concept?
@@jroon5146 i think price can go up on low volume and its considered bearish because heavier sell orders will skew the bid ask orders a lot more easily to said lower price
So how could you use this when price goes to all time highs ?
wow its so amazing volume brother. how can I get this platform brother
I've noticed that this gaps are usually formed where are the FVG formed as well...
Excellent video, I’ve watched a few times. Wondering: are there ways to determine which gaps and ledges might be the most significant? Some ledges are definitely steeper than others. Some volume gaps are shallower than others while some are found on high volume mountains. I’m assuming the low volume gaps that are the shallowest could create the largest reactions (especially when found on larger timeframes, like 4200-4240 on ES, for example). I’m learning more with experience of watching price reaction at the various types of gaps/ledges, just wondering if you had any comments 😁
Yeah exactly, higher time frames, gamma exposure, and dark pools can help us determine the best levels & when those ledges line up we can exact price to have big reactions. Also, value areas or PoC’s from days prior tend to fall right on these key levels where MM’s will react. It’s really a matter of trying to figure out where smart money algo’s will inject the most volume pushing us higher or lower depending on overall sentiment & trend direction.
@@FattyTrades Forensic trading essentially, love it :D
That RS hedge pressure level literally takes all the difficulty out of it finding where they will enter in. I’ve never seen anything like it. We can use Tradyfics to find the plays that are most bearish or bullish then use RS to know exactly where big money will enter in.
@@FattyTrades what's Rs Hedge pressure per VP
Nice video bro I'm expanding my own series on vp, so I'm watching other videos so I'll have others to recommend after that watch mine. You're top of my list, we use it similarly and you're confuse l concise nice job
Awesome! Outside of value areas and ledges, I’m going to do a video soon on using volume profile to identity before the day begins if we will likely be a trend day or a range day (along with macro economic data releases coming up)
I enjoy every video you make...
Can you try to talk Tradyticks and ask him NOT to implement "Journal"? This is totally none-tradable feature ... There are dedicated providers that exist for this purpose ONLY. And do this pretty well...
Unfortunately, I don’t have much say in what they focus on for their upcoming features, I’ve been trying to get a dedicated Russell 2000 version of Market Net Flow along with deeper insight into the exact levels MM’s will step in (I.e. hedge pressure). At least it’s something else that can be used in one place to avoid needing a separate provider for complex journaling features. I might dump my excel sheet depending on what they come up with 😉. They are very fast so it probably won’t take their focus for very long.
Which video shows how to do this in thinkorswim? Thank you!
The end of this video (timestamped link) will show you how to add in volume profile to your charts.
ua-cam.com/video/jFHTTcHJGko/v-deo.html
Which video has the tos setup for profile? Couldn't find it
Roughly 30min in on this video. Closer to the end I show my fav way of setting up TOS & Tradovate to match what I was showing in Tradingview
Nailing Trades with Volume Profile - Volume Price Analysis - Part 3
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@@FattyTrades thanks Fatty😁
Kevin...I'm on a trial of TradingView to try out some of the volume profile stuff and playback features you highlight. I've been playing with it for 24 hours now and here is what has me confused...I can send screen shots if You Tube will let me...on Trendspider, the daily candle for SPY on Friday is a hammer and the open, high, low, close would makes that right. When I look at the daily chart for SPY on Trading View, Friday's candle is not a hammer. The OHLC number data in header is correct, however, the daily candle itself is not representative of those price ranges from Friday. On my screen it doesn't look like a hammer at all. Any way I can send you a snapshot of what I'm seeing? When you look on a daily chart in Trading View does Friday's candle look correct to you? Wondering if I've got something set up incorrectly.
Hey did you get this figured out? Saw the last comment.
@@FattyTrades I've sent the question off to Trendspider and will probably hear back on Monday. I've not noticed this before, but it can realllllly give you a misleading daily candle if the open price is off by several points. I'm playing around with volume profile and layering it with the Saty ATR levels that I've been recently using to see where/if they coincide. Thanks for all the great videos you put out; I look forward each weekend to getting caught up on them and taking notes.
@@karenlehmberg1212 let me know what they say, I’d be curious about the answer. Where was their open? Also, be cautious with the default style of trading you see so often when an indicator or individual encourages breakout trades via “puts < $XXX” or calls > “$XXX” like SATY ATR does. I only caution this from both personal experience and learning from some incredible pro traders. When you watch how hedge funds & bank algo’s trade (which we always want to piggy back on) they inject liquidity at certain price points. So if the underlying flow & gamma exposure indicates market makers will be bullish, we will typically see price pull back to certain level (SPY on 8/2/22 for example - roughly 406.80) at which point we clearly see hedge funds inject a ton of volume and rapidly push price higher. This means, if we are bullish we’d want calls as SPY pulls back into 406.80, we hit “hedge pressure” with candle and volume confirmation, then enter our calls. If something indicated to take puts < $407 that day, it would’ve cost you a lot of money. The same is true for puts. On SPY 8/5/22, we saw a clear gap/seller imbalance form at 413.63 from macro news that caused a massive drop. This was likely to fill due to market auction theory then hold, therefore optimal put entries were as we came into 413.63 and showed signs of rejection. If someone said calls over $413 we would’ve been burned. I never ever want to knock someone’s style, as long as it’s working for them, just something to keep in the back of your mind about how smart money algo’s work. Often times chasing intraday breakouts are the opposite of what we should be doing. Hopefully that makes sense. I did a pro trader framework video about this concept but plan to go much deeper into “hedge pressure” in my next videos. Here is that video I’m referring to. For sake of the video not being 4 hours long, I had to leave a lot out. However, I did a lot of videos on figuring out daily sentiment. The next videos will focus on finding those best entry levels that we can anticipate these big money algo’s triggering at.
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@@FattyTrades So, here was the issue...I thought (incorrectly) that if I was looking at a daily chart that it would show me a candle shape representative of the market hours trading day. Since I use and look at extended and premarket hours, however, on my smaller timeframe charts, my setting is "include extended hours". So, because of this, the candle I was seeing on the TS daily chart included all the pre and post market activity and rendered a very different looking candle than what I was expecting. So, I have to be sure to turn that OFF when I want a daily chart. As to the SATY indicator, I never use it for the calls/puts triggers. What I have found, however, is that since it autopopulates the close line for the prev day and 1/2 an ATR above that and 1/2 an ATR below that (along with some other levels such as full ATR), it's those levels that I've found often come into play on SPY. On your comments above, I'll admit that ever since the GEX total per ticker disappeared on Tradytics (I'm a neophyte still with GEX) I've been unsure how to judge "when market makers will be bullish" based on GEX. I suppose in that case you'd recommend we look at the highest gamma levels for the ticker relative to existing price. Honestly, I loved that little easy GEX total as a quick gauge but can't seem to find it anywhere now. I always look forward to any content you put out as it's so thorough, thoughtful and well paced (and you masterly weave in the most important elements of price action/volume).
@@karenlehmberg1212 ah okay that makes sense. I’ve promised and failed to deliver a video on my tradingview settings many times now but need to get to it soon. You just made me think of it taking about SATY - So one cool trick you can do with price action is calculate the half way point between the open of the trading day and the close of the day prior. I recently learned this referred to as the half gap. This will often times become a level we struggle at. You can watch the main SPY sectors & heavily weighed tickers as we approach this level to determine the likelihood of breaking it as we approach, in combination with price action & volume. Also, if the half gap is very close to prior day close and same day open (within .25 cents roughly) if often means we will likely have a mean reversion day, especially if price is between key levels on higher time frames and there is an upcoming catalyst the next day. This is a good time to avoid SPY & look at other things. August 4th, 2022 was a great example of this. The open was very close to prior day close, the half gap was within .25 cents. We had a massive melt up losing momentum as we approached major levels from the daily (previous chop zone from late May/early June) and the next day was NFP & Jobless claims data release - the perfect storm for going no where and creating a very difficult trade day. We also see this often the Tuesday before FOMC minutes.
These ledges and volume gaps look like the supply and demand zones I draw!
Exactly, it’s a nice way of confirming your supply and demand zones are exactly where they should be.
How do you know which low volume areas it will hold & which ones it will skid through ? It seems inconsistent to me
Great question! The key is to use it in conjunction with price. I am hoping to cover it very soon but when you combine price concepts like fair value gaps & balanced price ranges with it, it'll help you determine the areas that'll actually hold or not. It's also important to be trading with the current market structure. I had to take some time away from social media right after making this video, but i started getting into those nuances in later vids. You might find this one very helpful.
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You won't know. I like to use 15 minute charts with daily (session) profiles with a 5m chart with 48 bar (4hr) profile. The larger profile is for my trade bias and the 5m for entry. But volume profile doesn't give much context to trend. Study smc market structure.
I use 33% as value area. I find 70 is too big of a range.
I take the previous comment back! I think it's the Trend Spider daily candle that doesn't make sense...
That can happen at times, depending on where a service gets their data from it can display differently, especially on macro economic news days like Friday.
How similar is this on webull? The indicators aren't exactly titled the same.
In webull it should also be named volume profile. Here is a video on how to add it.
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Hey bro how can I schedule a 1-1 with you
I had to take a step back from the social side of trading when my son was born 4 months ago but am finally getting back into the swing of things. Hit me up on discord - FattyTrades#2424
- I won't be able to get to the message right away because I'm playing catch up but would be happy to chat.
Im eatin haggis
Actually - if you look at those peaks (spikes) and draw a box around those....you will see consolidation....and when it breaks that...then a move happens.
Great call out!
@@FattyTrades And thanks to you and this video....I realized this logic!
god d the je wish people
thanks