Volume profile shows where actual trading happens, not just candle patterns. The value area contains 70% of volume and represents fair price. Profitable trades happen at the edges: if price breaks above and stays, go long; if it gets rejected back down, go short.
Chapters
Is this a good entry or a bad one? You've got 3 seconds to figure out. 1, 2, 3. You don't know. And that's the real problem. Not you, but what you've been taught to look at. Every retail trader watches the candle, the wick, the highs and the lows. But none of that tells you where the actual volume traded. The volume profile does. It shows you volume at price, at which exact levels the market actually did business. And the range where the most of that business happened is called the value area. That's where the market agreed was fair value. 70% of all volume sits inside of it. But here's the thing about fair value. The best trades never happen there. They live at the edges. If price pushes above the value area and stays there, nobody is pushing it back down and buyers are paying above fair value. That is your long. But if price pushes above and gets rejected straight back inside, that is your short. Comment the word join and I'll send you an invite to my free trading community.