Jesse Rogers explains how professionals use volume profiles and value areas to trade candlesticks, not just their highs and lows. When price briefly breaks a value area boundary then closes back inside, it signals a reversal trade. When price breaks through and closes outside, it's a breakout-retest setup.
This is what a retail trader sees, a candlestick. Yet this is what professionals see behind the candlestick. Most traders are marking highs and lows, but instead draw the volume profile. And now you're looking at what really matters. Inside the volume profile, you have something called the value area. And this is the secret to avoiding choppy markets and bad trades. The value area is simple. It is just an area where 70% of all the volume in the market traded. So inside this value area, you're expecting the market to chop. But once we hit the top or the bottom, two things can happen at these levels, and both give you a trade. If price pushes past the level but then closes back inside, then you trade the reversal and trade to the opposing level. But if the market breaks out of one of these levels, retests it, and then closes another candle back outside, you enter the market and hold because these are some of the most explosive moves. Save this video so you can study this the next time you're on your chart. Jesse Rogers.
