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Actually, @JonnyBoys' VWAP material is in a different thread. A good place to start is with this series of posts, and then continuing on in that thread:
JonnyBoy's reasonably definitive guide to VWAP - Part One
Introduction
There are very few worthwhile sources out there regarding VWAP. I have seen many YouTube videos and forum posts about VWAP, but none that really get down to brass tacks of …
Note that VWAP and volume profile, while related in a very loose sense, are different. They may be helpful in combination, as @forgiven said, but it will depend on the use that is made of them by the trader.
To keep things straight, let's keep VWAP discussion in the VWAP thread, and volume profile in this one (unless discussing the relation between the two, which is fine in either one. )
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
what does a volume profile trade set up look like . most charting platforms have volume profile charting . you put the past trading days RTH on a volume profile and turn one the value area and volume POC feathers . what your looking for first is balance or a normal distribution day . this is where new volume and market profile traders get lost in the weeds . there can be know value with out balance. the past days trading day should look like some kind of normal bell curve. it also must be with in 15 % of the instruments average daily range. if the two conditions are there its called a primary day. next you look for price to retest the volume POC and brake out of the top of the value area were you go long . the stop goes just below the value area low . your target is 1 to 2 tames the instruments average daily range . if you want to add some filters . make sure price is trading above the 8 day EMA on a daily and weekly chart and you have one time framing on a daily and weekly charting .. hope it helps
Trading: The one I'm creating in the present....Index Futures mini/micro, ZF
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What do you mean, "there are no experts"?
Volume Profiling is all about value, understanding value, what prices constitute value, where is price related to value....where it's considered valuable and where it is not.
Finding value for something simple like a trailer hitch is easy.
Finding key value areas in Index Futures, for example, where it moves around, multiple areas come into play and overlap etc, isn't. Not to mention how value can relate across different instruments and asset classes.
You did not mention Value once in the above.
Session profiles still have their place, but profiling volume is an art that is practiced and drawn where appropriate.
Maybe you meant, "I'm no expert".....?
FT71 is an expert that quickly comes to mind. Kam is another.
Ron
...My calamity is My providence, outwardly it is fire and vengeance, but inwardly it is light and mercy...
The steed of this Valley is pain; and if there be no pain this journey will never end.
Buy Low And Sell High (read left to right or right to left....lol)
Volume profile is fantastic but is not a tool to be used in isolation.
You have to use it understanding the context of the market, along with whether there is any confluence of levels going on e.g. has price just breached a daily low/swing high or low etc.
Example in ES today r.e. context. Price moved higher at the open and hit the Friday VPOC. Then showed signs of going lower and it ultimately did move lower.
The context would be-'has anything changed on a fundamental basis from Friday that can justify today's price moving higher from here?'
I would answer no. So if that's the case you have a reference point/confluence of levels(the VPOC and price has stopped and is looking like reversing) allied with a fundamental context for the move. Capture
nice example , the trade you want on that chart is when price trades into the hole or area of minus development . it trades across that area more quickly , momentum and direction is more certain , and the target and stop placement are clearly defined . the high volume nodes or areas of balance .
Your post is fantastic and is a great riposte to what I think is one of the huge problems that people encounter when learning to trade (and something I experienced myself). And that is the endless circular waffle and overly intellectual (and therefore unintelligible) language that people employ to describe what are actually very simple concepts.