Learn to read volume profile on 5-minute charts to spot failed auctions and high-probability trades. When aggressive buyers or sellers take control, price tends to move to the opposite side of the fair-value area. The presenter used this method for one of his best trading days.
I have a question for you. Uh-oh. What is your biggest turn-on? First of all, I start by looking at the overall volume profile, right? And if we thought about the auction model we just explained, what is the current situation? Well, aggressive sellers, aggressive sellers, aggressive sellers, and balance. This is all balance, right? We're on the 5-minute chart. This is several days, several weeks. So the composite volume profile shows me, okay, the entirety of the chart you can see, what's the volume distribution of that? Okay, this is it. This is it. So we have the value area low, we have the value area high. What's the first setup I've explained? Failed auction with absorbed sellers and aggressive buyers taking control. Other setup is aggressive buyers being absorbed, sellers taking control, and my goal is to reach the other side of the fair value area, right? This is what we discussed yesterday. This is exactly what happened, and it was, to be honest, one of my best trading sessions ever yesterday, okay?
