Vollständiges Transkript von „The first thing Fabio Valentini teaches (Deepcharts)“. Klicke auf einen Zeitstempel, um das Video an dieser Stelle zu öffnen. Du brauchst ein anderes Video? Nutze den YouTube-Transkript-Generator.
0:00 This was the first thing Fabio Valentini explained in the boot camp. How does volume profile actually work and that is exactly where we're diving into today. I see a lot of people struggling with where to place the volume profile as well. So, first we are going to dive in what Fabio had to say about volume profiles. But after that, I'm also going to show you exactly where and how to use the volume profile. So, make sure you watch until the end. Let's not waste any time and let's just start. I >> think we can get a nice short here. But uh I'll just record this video and price is literally exactly reacting to that level. How insane is that? I told you we can expect a nice short. Oh, there was a
0:46 nice short. The VU profile, this is the first thing that Fabio started the boot camp with. So now you can understand that the volume profile is maybe the one of the most important tools as a trader. As you can see this is a volume profile. I know my drawings are not the best but this is a volume profile and the first thing that Fabio explained was that we have two different types of market condition. So this is already one very important thing to understand and the first one is a balanced market and the second thing is I think you can guess this one an imbalanced market. So I actually drew them here. So we have a balanced market and imbalanced market. So what is a balanced market? A balanced market is a market that is trading inside a range. So as you can see here,
1:33 we have a high volume node and the market and the price is trading inside that high volume node. And one very important thing to know is that price is trading 70% of the time in balance. So this is super super super important to understand and to remember because if you are a breakout trader and you are constantly looking for a breakout, well that only happens 30% of the time because 70% of the time the price is just seeking fair value and that is imbalance. So what is the other 30% of the time happening in the market? Well, then we are in an imbalanced condition and that we know as uh for example a breakout or a trending day doesn't
2:20 happen too much. You know it yourself. So this is already something where a lot of traders are burning their fingers hitting a lot of stop- losses because if you are trying to trade the breakout here here or here, well that's already five stop losses. So remember we have a balanced market where we trade 70% of the time and we have a imbalanced market like a trending market and that we are doing 30% of the time. Then let's have a look at this volume profile. If you are not familiar with these terms yet, I would recommend to draw them in your book as I have here. I highly recommend you to literally draw a single profile shape, a balanced market, an imbalanced market, the low volume node, high volume note,
3:08 another low volume note. Write down that this is a single profile shape. Write down that these things are the ledges. This is the value area high, value area low. You have to draw it guys because if you literally do it by hand, you will remember it and you will not forget it anymore. So that is one tip from your training bro. So maybe I went a bit too fast. What do we have here? We have a low volume note. So there's no fair value here. Then we have the high volume note. Here we are trading 70% of the time. And this is what buyers and sellers see as a fair price. So why do you think that price likes to trade in this range? Because buyers and sellers are agreeing that this is a fair price. If we go for example out on the bottom,
3:55 buyers are seeing this as a cheap price. So buyers are stepping in because they think it's cheap. Sellers are not selling because they want more for their money and therefore we are just trading back in. And the same happens here. Sellers think it's a nice price to sell and buyers think it's too expensive. Well, what happens? We are trading back to fair value. So value area high, value area low. These things are called legend and this is where the volume profile goes from low volume note to the high volume note. Here you just create an area and on top that is the value area high and on the bottom that's the value area low. And if we have just one high volume note that is called a single
4:40 profile shape. But the volume profile is not always looking as clean as this. Sometimes we have it a bit more like this and that is called the double profile shape. The double profile shape here we have two high volume node and as you can see we are trading in this area in balance but then we have a small imbalance and then we are starting to trade in balance again. Here we have a small imbalance again. Balance imbalance balance. So as you can see now you can understand why price is only trading 30% of the time in imbalance because most of the time we are just trading inside ranges. So then I want to show you some metrics in a real volume profile. So let's have a look in deep charts. So this is a real volume profile and we
5:27 have a lot of more data here than in my drawing but let's just have a look what we all see in here. So the first thing that we see is that we have a very pretty high volume note over here. Actually this is the first high volume node. Then what is this purple line? This purple line is something very important. And that purple line is called the PC also known as the point of control. And this is the the peak where most volume was transacted. And why is the point of control important? Well, this is the spot where most volume was traded. So, price is most likely reacting to this level. So, let's first draw some important levels in here.
6:12 Well, we have here the value area low. And if you don't have deep charts, you would maybe draw this as a value area low. But the mathematical calculations of this profile say that this is the value area low and that this is the value area high. And that is just because the most amount of volume was traded inside that orange area. So we have the value area high, value area low. So we know now that this is the volume profile. So the the volume that has been traded. But what do we have on the left side of that? Well, this is called the delta. And the delta it's actually very simple. This is just the the the buyers versus the sellers. So who is stronger? And the one that was
6:57 stronger that is uh shown in here and also the bigger the candle stronger slash bigger the the buys or the sells were. So these are also very important metrics because price is also just reacting to those levels. Let's make this volume profile a little bit smaller to give you a nice example of what the delta has for power because as you can see here if we make it a little bit smaller and we let's just take today you can see here the day started here and as you can see the delta is not very very big over here and we have one huge buy delta. So what does that mean? That means that the buyers are trying to protect this level heavily. So, but what you can also see is like here it worked.
7:45 So, they protected the level, but at the value area high it rejected. Buyers think it's too expensive. So, we are going down again. We're getting some momentum. Sellers are trying to push very hard. But these buyers, they are still trying to protect this level because we are breaking through it, but the buyers are pushing directly back into the range. So there's a high chance that the buyers are keeping guard of this level. So what you could do for example is just look for a nice entry here and trade back to the value area high again. Let's take this example from last week. As you can see we have the value area over here. The high volume notes actually all day we are kind of trading inside this range. But let's just have a look at volume and delta.
8:32 what it can tell us what direction we're maybe going. This is actually right at open of New York. You can see New York just opened 5 minutes. All right. What is the delta telling us here? We have our value area low. We have our value area high. As you can see, we had a clear rejection of the value area high. Then we went to the value area low. And then on the first candle, so all this price is not in there yet. We have a huge sell delt, a huge one. As you can see that the biggest one of the whole day and that was at 45. So it was not that open was just at 45. The market is already open for 15 minutes and then we see at the value area low we see huge selling happening. Well, if we see that
9:17 happening, then it could be a trading idea to just place a limit order on the value area low and target maybe one of the nearest lows. So you can take this one or this one. Well, as you can see here, if you target this one and you put your stop at just above the P because maybe we uh retest it a little bit deeper, but then we have the PC as a coverage. Well, as you can see, then you have a nice 5 hour trade. But the point that I'm trying to make is that you can see by volume, by delta who is winning the battle. And as you can see, this area was so strong that we never reached it again. So I saw that a lot of people are struggling with how to plot the volume profile. So let's start at the big time frame and then slowly we are going to the lower time frame. So let's
10:04 start with the composite volume profile and we can select the composite volume profile here and this volume profile is just over the full time frame that you have selected here. So I have it on 60 days now. If you put it on 30 days, it will give you the composite volume profile over 30 days. 15 days is 15 days and then you have of course 3 months, 6 months. So it's just the biggest volume profile that you can have on the time that you put in. So this will give you the value area high and the value area low from a very high time frame. And as you can see here, price rejected here once, twice. Here we get a little bit out of range, back into the range, far
10:50 back out of the range. But as you can see again here, back into the range and we are rejecting at the value area high again. So if you only look at the composite volume profile, you can maybe look for a short if we for example break the PC or wait until we trade into the value area high again and look for shorts there or of course look for a quick retest and then if you have enough confirmation for a nice long. But of course all of this you need extra confirmations and everything. But as you can see here price is reacting at that value area high. price at the very area low is just very valuable. All right, then we go one lower. So this is the weekly. We are actually trading inside this range still. And as you can see
11:37 here, this is the value area low and this is the value area high for this week. Trading 2 days already inside this value area. So for now, you can just try to trade from the top of the range to the bottom of the range, from the bottom of the range to the top of the range. But the longer we stay inside a range, the bigger we can expect the breakout. That is at least what Fabio said. And actually yesterday during the live, we were looking at a breakout here. But unfortunate, we didn't got it. But I really think that the breakout is going to happen this week. It's only Wednesday. So either today during New York or Thursday or Friday, I think we can see a very nice run. And to be honest, Fabio said he thought it was
12:23 going to be on the top of the range because this is just a few days. As you can see, we are in a uptrend. But on the other hand, it is also an area where we already 1, two, three, four, five times react. So maybe if we for example break out out of this value area high, we maybe can just take a long until here and then see what happens. take at least a lot of profit because most likely we are going to get a big reaction here. So you want to take profit and then see what happen because the chances of going back are bigger than that we break out here. But if we get this breakout is going to be an aggressive one. So that's going to be very cool. So we had the composite, we had the weekly, now let's go to the daily. And as you can see here already, we had 1 2 3 4 almost five days
13:12 in that same range. And that's actually the same as uh of course as the weekly. But before we dive into the daily, I want to show you another chart. It's a template from deep charts itself. If you go to their templates and then you have here cash session profile. Yeah, this is the one from deep charts itself. I made a bit of a customized one. For me, that's a little bit more clear. Here it is. All right. What do we see here? You see here the daily volume profile of the cash sessions. This is something that Fabio explained and how do you see if we are in a in an uptrend or in a downtrend? Well, we look at the PC, the point of control. And as you can see, the point of control is here. And then
13:59 the day after, the point of control is here. And the day after it's a little bit lower, and then the day after it's higher, higher, higher, higher. But because all of these value areas are quite in the same range, what can we do? We can do something very cool. We can do right click here and we can do merge. And then we do that again. Right click, merge. Right click, merge. All right. So now we have a very big volume profile because all of these volume profiles were were quite in the same area. So now we have a very strong value area high. That was already the one that we plotted out. It's quite similar. And we have a very
14:46 strong value area low. And what do we see? We see that that point of control is going up up up and here up and this was a volume profile of four or five days and as you can see here we are again going up. So we have a few very important levels. We have this point of control over here. So and that is that aligns exactly with the value area low of today. So that's already very cool to see. So what does that mean? That means that if we break this value area low, we can expect to look for the value area low of the previous 5 6 days. That's already something very interesting to see. So if
15:33 we break this level, we can expect price to come back and then from here we can definitely expect price to go up again maybe to the first point of control or the second point of control. All these things can be target points. So through this chart you can get a very clear hue on your bias. Where can we expect price to go? So for example now at this moment we are quite in the middle of a zone. So I think it's better to have a little bit of patience just see where price wants to go. For example if we break this uh point of control here we can expect price to go lower. And if we are here and we see data that shows us that we
16:18 are maybe getting a reversal, then just look for longs again. And then you you don't have to take that long all the way up here. But we have those target points. We have the PC here. We have the PC here. And then we have the value area high. It's a very nice way to get a little bit of a bias. So now we have quite some levels. We have the value area high and low of the composite, the weekly, the daily. We have a little bit of a bias because we looked at the cash sessions and where the pressure is going. We have possible areas to take trades from. We have TP levels. We have stop-loss levels. But then just have a look at today's session. How are you going to start with your session? All right, we have the composite. Okay,
17:04 sorry guys. I had to take a small trade in between because uh price started to take off. So I took a few nice loss. So we are clearly in this area. So we have the composite value area high. We have the point of control and down here we have the composite value area low. But for now that's not too interesting because we are trading in this. I like to put it just in the chart and then just take it away because otherwise it gets very messy. Then we have the weekly volume profile and this is very funny because the value area low is exactly in line with the composite point of control. And then we have another value area high. Think we can get a nice short here. But uh I'll just record this
17:50 video. New orbit opening in 1 hour. So then I would trade. Well, well, well. Would you look at that? I told you that a nice short was coming. And actually it's very nice because this also aligns with the weekly value area high. So we are just rejecting the weekly value area high. No, this is live price behavior, guys. Price is moving up. We just drew the Oh, there was a nice short. Cool. I just drew this weekly value area high and price is literally exactly reacting through that level. How insane is that? And as you can see, I told you we can expect a nice short. Let's say from the 720s, we are now already back at the 680. So that's already 40 points and we
18:35 are still going. But we are not trading at the moment. We are looking at how price is behaving at volume profile. So this is already a beautiful example how strong volume actually to prove you that is live. It's um 1433 and as you can see here it is uh 1430 same date 10th of December. So this is literally life. It's insane that it is very cool. This is very cool. Um and as you can see here now again price is now reacting to this low volume nodes. All right the low volume the value area low is in line with the the the P of the composite. Then we have these two value area high. Let's have a look at the daily volume profile. I'm not going to
19:22 draw the sections because normally I just keep this one in the chart. And then I just have the daily levels in here. And as you can see here, failure area high, failure area low. And it makes sense that this is of course quite in line with where the price has been today. So that is of course no rocket science. That is just logical because now we have the levels from the higher time frames. All right. What can you do with the volume profile in the day itself? So for example, here if you want to see and let's say we just had this move, this move down. So now we want to see where price is going to move next. What is price going to do? Where is price going to react? So then we can just take this this range. Let's see what this is telling us. All right, we
20:08 see that we had big selling pressure over here. So that means that sellers want to protect this level. Sellers really wanted to go down over here. Then here we actually don't have too much volume. There was there's not too much information here. This was the longest session. So there was just not too much volume happening. This is way more clear if you do this in a New York session because you have way more volume. But what we can do here as well, we are in this value area high. We have here on this side at least we have one of the biggest selling volume nodes. Well, let's have a look. Well, well well sellers protected this level. Okay, so that is that is one thing that you can do with the volume profile. You can mark a lag. But now here we had quite some
20:55 consolidation afterward. Well, if you want to see what happened in this consolidation, we can just take this consolidation and see what happened here. Well, this is also very funny because the point of control was exactly at the spot of that low volume note of this L. That's also very funny. But we don't have too much selling at that spot anymore. So, it's a bit more divided. So, what do we see here? The biggest volume nodes, the the biggest delta nodes are buyers. So we already have a little bit more of buying happening in these level. Here we have a buying area and here we have a buying area. So if we are trading in here, we have the value area high, value area low. So until we are in this range, it's it's maybe
21:41 better to just look for for trades inside this range. So if we are here, maybe it's better to look for a long. If we are here, it's maybe better to look for a short. Look at what is happening here. Are we going to break out? No, there's no sign of breaking out. Is there here a sign of breaking out? Well, maybe. We have to look for more data and I will definitely make a video about that as well for your entry. So, make sure to subscribe because you don't want to miss that. But then here, okay, probably some volume kicked in here and we started to break. And you see it the moment that we break, it goes fast. So, you really want to be there. And it's very funny because the moment that it breaks and you're going in, you find your entry. Well, then from the previous areas that we marked up, you already
22:28 have a TP level. That's the magic about volume. If you can read volume, you just know if price does this, it probably goes here. So, we are not predicting the market. We are just reacting to what the market is giving us. So if the market is not yet breaking out, we sit on our hands or if we are trading in a range, we stay in the range. But if we are breaking out, then we have from previous data levels where we most likely going to trade. So let's put it all together. If you start your day, you can look at the composite, you can look at the weekly, you can look at the daily, but also look at the cash session profile volume per day because you can get a lot of valuable information out of that as well. And then when you have all those levels and you have a little bit of a
23:14 bias and that is not a a bias from okay I'm going only long today. Oh I'm going only short today. No, the bias is okay, I know the level and then you can go into your the daily volume profile and then slowly you can just make it smaller and smaller and then if you see that we just had a very big lag you can just plot that lag and see where are buyers stepping in, where are sellers stepping in, mark those level and then just wait for confirmation. If you see, oh, price is consolidating. Well, if it's very choppy, you just make that range and don't trade in that range. Wait for a breakout. So, I really hope this made a bit sense for you and you understand volume profiles a bit more now. And if
23:59 so, do me a favor, subscribe to the channel and if you never want to trade alone anymore, join the bro trading discord. If you have questions, write them in the comments or you can ask them to me personally in the discord. Thanks for watching and I see you in the next one,
