Hi everyone!

After trying ICT trading, i've now decided to do volume profile trading. However, most courses ive seen on volume profile is very vague, doesnt teach building context narrative and key levels much.

I want to learn how to build context/narrative, what key levels to use etc

Which course should i take?

Please send some names so i can go and find it and watch it, free or paid. All i need is names.



Thanks in advance

Try the Axia Futures Youtube videos. Most of their videos contain some volume profile content. It'll give an initial idea.

I think they have a Profile course on their website. I don't know the cost, and I have not taken the course.

good luck

ragic 

Try the Axia Futures Youtube videos. Most of their videos contain some volume profile content. It'll give an initial idea. I think they have a Profile course on their website. I don't know the cost, and I have not taken the course. good luck

thanks, i know the components etc but not how to build narrative/context.

justinlove 

thanks, i know the components etc but not how to build narrative/context.

ChatGPT: can you explain how to build narrative / context using volume profile in futures trading?

Absolutely! Building narrative and context using **Volume Profile** in **futures trading** is a powerful technique that helps traders understand the underlying auction process, market sentiment, and potential turning points. Let’s break this down step by step.

---

### 📌 What Is Volume Profile?

Volume Profile is a charting tool that shows how much volume was traded at each price level (not time-based). It reveals where the market has *spent time* and *transacted most heavily* — key information in futures markets.

---

## ✅ Step-by-Step: How to Build Narrative / Context with Volume Profile

---

### **1. Define the Time Frame Context**

Before interpreting volume, decide the **scope of your context**:

* **Macro**: Weekly/monthly profile → institutional behavior
* **Micro**: Daily/intraday profile → short-term participants (scalpers, day traders)
* Combine both to understand broader and immediate forces.

---

### **2. Identify Key Volume Profile Features**

Here’s what to look for in the profile:

| Feature | Meaning |
| -------------------------- | -------------------------------------------------------- |
| **POC (Point of Control)** | Price with highest traded volume — fair value |
| **Value Area (VAH/VAL)** | 70% of volume traded — defines where price is "accepted" |
| **High Volume Node (HVN)** | Areas of consolidation — acceptance zones |
| **Low Volume Node (LVN)** | Areas of rejection — often act as support/resistance |

---

### **3. Understand the Auction Process**

Markets move between **balance** (consolidation) and **imbalance** (trending):

* **Balance**: Price is accepted → look for breakouts
* **Imbalance**: Price is searching for new value → look for continuation or reversion

Use this to frame narrative like:

> "The market is currently in balance between 4400–4450 (value area). A breakout above VAH with volume suggests a new auction higher."

---

### **4. Build Context with Market Structure**

Layer Volume Profile with price action:

* **Previous day/week's value area**: Where was value previously accepted?
* **Current profile shape**:

* **D-shape**: Balance → wait for breakout
* **P-shape**: Short covering → likely up continuation
* **b-shape**: Long liquidation → likely down continuation

This lets you say things like:

> “Yesterday’s profile was a b-shape indicating liquidation. Today, price opened above that value area — short covering may drive it higher.”

---

### **5. Monitor Transitions Between Value**

Watch how price reacts to:

* **Rejection of previous value** → potential breakout
* **Acceptance within prior value** → likely mean reversion
* **New value developing** → possible trend

This helps form a narrative:

> “Price opened below value and was quickly rejected — the market is likely trying to find lower value.”

---

### **6. Combine with Other Tools**

Context gets stronger when Volume Profile is combined with:

* **Order flow / footprint charts**
* **VWAP and moving averages**
* **Price levels like previous day’s high/low**
* **News or economic events**

---

### 📘 Example Narrative

> "We’re trading below yesterday’s value area and building volume at lower prices, suggesting sellers are in control. The current profile shows a developing b-shape — likely long liquidation. If price continues to build value lower, I’ll look for continuation shorts targeting the next major LVN at 4305."

---

### 💡 Pro Tips

* Volume Profile is not predictive alone — use it to **frame hypotheses**, not certainties.
* Stay **neutral** — build a "if this, then that" mindset.
* **Adapt your narrative** as the session evolves.

---

If you want, I can walk you through a live example using current market data (just let me know the futures contract you're trading). Or I can help you build a Volume Profile-based trading plan.

Thanks guys i will have a look at the above materials.

Great thread on how to learn the language. Took me s long time stumbling through bits and pieces.

Several sources are around for a before the open view. Smash Elito does a daily and weekly with targets. Ninja Trader Live does daily targets and of course Ft 71 has a a premarket.

News services are out there and there are apps that will put upcoming data releases on your screens.

The issue this year is the pronouncements from the administration. Go look at the chart from when we will have a deal with the European Union hit.

You have to trade what is in front of you but market profile is like having google maps going where it alerts to where there was a speed trap or junk in the road.

justinlove 

thanks, i know the components etc but not how to build narrative/context.

@justinlove,

I completely understand your question - knowing POC, VAH/VAL, and HVN/LVN is just the foundation. Many traders find that developing market context involves understanding auction theory and participant behavior rather than just identifying levels.

The Context-Building Approach:

The difference between knowing components and building narrative often involves thinking like an auctioneer rather than a pattern trader. Market participants frequently ask: "What story is this auction telling about participant behavior?"

Educational Resources for Context Development:

1. **Market Profile and Auction Theory Literature** - Educational materials that focus on auction market theory rather than linear component identification. These resources typically emphasize understanding market psychology through price discovery concepts.

2. **Volume Profile Educational Content** - Various courses and materials cover narrative construction through auction market theory. Many emphasize building context through multiple timeframe analysis and participant behavior studies.

3. **Order Flow Education** - Educational resources that explain how to analyze market structure using volume clusters and institutional activity patterns. These approaches often frame volume analysis as understanding market participant footprints.

Common Analytical Framework:

Traders often consider these relationships:
- **Yesterday's value area** vs **today's opening** = participant acceptance/rejection concepts
- **Profile shapes** (P-shape, b-shape, D-shape) = common institutional behavior pattern studies
- **Volume migrations** = areas where significant activity typically occurs
- **Single prints and poor highs/lows** = failed auction concepts that may create future reference points

Example Narrative Development:

Instead of: "POC at 4,400, VAH at 4,420"
Market participants might observe: "Yesterday's value established 4,400 as a reference point, while overnight markets opened above 4,420. Traders often monitor whether markets return to previous value areas or continue price discovery toward new levels."

Building on dakine's YouTube Suggestions:

Educational video content can be valuable for understanding how market professionals construct market narratives. When reviewing educational materials, observers often focus on the methodology behind narrative construction rather than specific predictions.

Advanced Concepts:

Some trading approaches combine volume profile with order flow footprint data. Volume analysis shows WHERE activity occurred, while footprint charts may indicate the nature of that activity. This combination is sometimes used to develop more comprehensive market analysis.

Many traders report that developing market insight involves transitioning from seeing static levels to understanding dynamic participant behavior. Educational progression often involves learning to interpret profiles in terms of market psychology rather than just technical levels.

Various educational resources focus on this psychological aspect of market analysis rather than just component identification - which appears to align with your interest in developing contextual understanding.

-- Fi
"Choice is an illusion created between those with power and those without."