A trader explains why you shouldn't decide on a trade in three seconds. He uses volume profile, a chart tool that shows mountains (high-volume areas where price stalls) and valleys (low-volume gaps price moves through fast). Wait for price to leave the mountain and enter a valley before you trade.
Would you go long or short here? You got 3 seconds to decide. 1, 2, 3. If you said short, I get it. Price action does look bearish, but let's take a look at the volume. Not the bars at the bottom of your screen. The volume profile. Right now, price is sitting inside of a high volume node. Think of a volume profile like mountains and valleys where high volume nodes are the mountains, meaning a lot of trading happened there. Large positions got built and the market is likely to slow down at these areas to defend those prices. And that is why price is stalling here. Low volume nodes are the valleys. Barely any trading took place here. So when price moves into one, it moves fast because there's no one holding it back. So the answer here is neither long nor short. Not yet, at least. You wait for price to work its way out of the mountain and into the valley, and that move is your signal. Save this video and go study this on your charts so you can see for yourself.
