Master the Fixed Range Volume Profile!!!

Summary

This video introduces the Fixed Range Volume Profile tool on TradingView, a favorite for day traders. The speaker demonstrates how to apply the tool on various timeframes, explaining key concepts such as value areas, high volume nodes, and points of control. They discuss how adjusting settings like row size can improve data clarity. The video also explores how to use the tool during market opens, particularly the New York session, and emphasizes the importance of understanding market ranges, rotation, and confluence. The session concludes with practical tips on trading strategies and risk management.

Takeaways

• 📊 The video discusses the Fixed Range Volume Profile tool on TradingView, a vital tool used daily by the speaker for day trading.
• 👆 The Fixed Range Volume Profile is a two-click tool that helps visualize sideways volume, showing areas of interest and high-volume nodes.
• ⚙️ The speaker emphasizes adjusting settings like value area lines, row size, and bar size to get more detailed insights from the volume profile.
• 📈 The tool shows areas of interest where price action is likely to occur, especially at key levels like the point of control, value area low, and high.
• ⏳ The speaker highlights using this tool for daily and intraday trading, especially around significant market opens such as New York’s open (2:30 UTC).
• 🧠 A good trading strategy involves waiting for the New York open and understanding market reactions based on the value area and price movements at this time.
• 🔄 The video mentions 'range-bound' market behavior, noting that 80% of days are spent within a range, making the tool useful for identifying market rotation.
• 🔍 Patterns such as the double distribution day (B-shaped volume profile) and balance days are important in interpreting market behavior and volume distribution.
• 📅 Knowing the timing of major market sessions (like New York, London, and Germany) helps traders identify high-interest periods and market movements.
• 📚 The speaker recommends incorporating other indicators and confluence factors into trading setups for more informed decision-making and better trade execution.

Q & A

What is the main tool being discussed in the video?

The main tool discussed in the video is the Fixed Range Volume Profile tool on TradingView.

Why does the speaker use the Fixed Range Volume Profile tool daily?

The speaker uses the Fixed Range Volume Profile tool daily because it helps identify areas of interest by showing historical volume levels, which are important for making informed trading decisions.

What are 'high volume nodes' and why are they important?

High volume nodes are areas where a lot of trading volume has taken place historically. They are important because they often indicate strong areas of interest where price reactions are likely to occur.

How does the speaker adjust the tool for large timeframes?

For large timeframes, the speaker adjusts the row size in the settings of the Fixed Range Volume Profile to get more detailed information. For example, on larger timeframes, they recommend setting the row size to around 70.

What does the speaker suggest focusing on when day trading?

The speaker suggests focusing on the New York open when day trading, as it tends to be a volatile period that often provides trading opportunities.

How does the speaker use confluence in trading decisions?

The speaker uses confluence by combining multiple factors such as the Fibonacci retracement levels, channel patterns, and the Fixed Range Volume Profile to build a stronger case for taking a trade.

What is a 'double distribution day' and how can it be identified?

A double distribution day is identified when there are two distinct areas of high volume within a trading session, resembling a 'B' shape on the volume profile. These areas often indicate significant market movement between two high-volume nodes.

What is the significance of the value area high and low in the Fixed Range Volume Profile?

The value area high and low represent the upper and lower boundaries of the area where 70% of the trading volume has occurred. These levels often act as support or resistance in the market.

How does the speaker use the Fixed Range Volume Profile during the New York open?

During the New York open, the speaker uses the Fixed Range Volume Profile to analyze how the market behaves at the value area high, low, and the point of control, often looking for potential trading setups based on how price reacts to these levels.

What trading session indicators does the speaker recommend using?

The speaker recommends using session indicators like the one provided by Traders Reality, which displays various market sessions, such as the Sydney, Tokyo, London, and New York sessions, along with their corresponding price ranges.