A trader argues candlestick analysis is useless and presents volume profile as the real edge. The value area, containing 70% of traded volume, marks fair value. Trade only outside it: buy when price breaks above and holds, sell when it breaks above but gets rejected back inside.
Is this a good entry or a bad one? I'll give you 3 seconds to decide. 1, 2, 3. You don't know. And that's exactly why you keep losing trades. But it's not your fault because you have been taught trading all wrong. You see, candlesticks tell you nothing, but volume tells you everything. And the way to correctly read volume is not by those bars at the bottom of your screen. It's through the volume profile. This shows you volume at price, meaning where did the real trading actually happen? Inside the volume profile is something called the value area, and this is where the market found fair value, meaning this is where 70% of all the volume was traded. And here's the thing about fair value. The best trades never happen there. The best trades that are worth taking live on the outside. If price pushes above the value area and the market accepts it, then that is your long. If price pushes above it and gets rejected straight back inside, then that is your short. This is not guessing on random levels based on theory. This is reading the data that the market is actually telling you. Now save this and come back to study it next time you're on the charts.
