A trader explains how to read volume profiles: high-volume areas act like mountains where price stalls because big positions defend the level. Wait for price to move into low-volume valleys before buying or selling, which signals a stronger move coming.
Would you buy or sell here? 3 seconds to decide. 1, 2, 3. If you said buy, I get it. Price looks bullish, but look at the volume. Not the bars at the bottom of your screen, the volume profile. Right now, price is sitting inside a high volume node. Think of the volume profile like mountains and valleys. High volume nodes are the mountains. A significant amount of trading happened there. Large positions were built, and the market slows down to defend those prices. That's exactly why price is stalling here. Low volume nodes are the valleys. Barely any trading took place, and when price moves into one, it moves fast because there's nothing holding it back. So the answer here is not buy nor sell. Not yet. You wait for price to work its way out of this mountain and into the valley. That move is your signal. If you want to learn more about volume profiles, I have a free course and a community. Comment the word join and I'll send you the link.
