A trader explains how he grew a $9,000 account to $170,000 using three concepts: volume profile to identify fair value zones, acceptance and rejection to read bullish and bearish signals, and high and low volume nodes to find optimal trade entries.
3 concepts that I use to turn $9,000 into over $170,000. First, the volume profile. Most retail traders are just going to look at candlesticks, but all professionals look at volume. And not just regular volume, but volume at price, which is what the volume profile shows you. This is the best tool to be able to see large positions in the market based on data. The volume profile gives you 3 main levels: the value area high, the value area low, and and the point of control. And in between this value area is where the market saw fair value. But how do we use this tool to actually get an unfair advantage and take trades? Now, this brings us to concept number 2, acceptance and rejection. If the market moves above fair value and stays there, that means the market is accepting a higher price, meaning it will go up. Even if there are fakeouts, those are usually just buying opportunities. And vice versa, if the market accepts a price lower than fair value, then it's likely going to move the downside. Any sharp moves up are just fakeouts that you can sell into. But if you buy or if you sell, where do you take it to? Now, this brings us to the next concept, which are high and low volume nodes. High volume nodes are areas where a significant amount of trading happened. So large positions are built there, which means when price is going to hit these levels, it's going to slow down because there are people defending these positions. And low volume nodes are the opposite. Since there was nobody positioned in these areas, price often moves very rapidly through them, and this is where the best trades happen. Master these 3 concepts and you will see the market in a way that most traders never will. Now save this video so you can watch it whenever you're on the charts.
