Short instructional transcript explaining how to identify high-probability trading areas using volume profile concepts. The speaker contrasts sticky (high-value) and unsticky (low-value) price areas, describes volume bars as indicators of value, and states that prices tend to move quickly through low-value areas toward high-value (high-volume) areas to seek liquidity.
We've got our volume bars and we've got our prices. We have some prices and then it whipsaws in here, and the price is here. What set of prices are we most likely to be stuck into? It would make sense for us to be stuck around where people are. And what's important here is if we have this consolidation very different. If the story of the volume profile is perhaps like this, let's imagine that we're consolidating, but now the volume kind of thinly traded. So now none of these prices matter. It's really, really important to understand which prices are sticky or unsticky. And that goes into really what we call high value areas and low value areas, where the bars are the biggest and the low value areas where the bars are the lowest. And we expect prices to rip through low value to seek out liquidity and actually seek out the high value areas, which is important as well.
