THIS is the World Trading Champion’s Favorite Indicator!

Indicators. Oh my God when I hear this word. But you have to know there are three of them were still working for us, but they are not lagging. These indicators are really intelligent and I will give you an explanation what kind of indicators we use to take and to have big profits in the markets. If you want to learn who of them on what kind of indicators are working for you, listen today I will give you an explanation of the stories behind that you have trust in these indicators because they are not lagging. I hope you will like this video. I translated as was AI because my English is not perfect but I think.

You will love it.

And yes, have a good time with it. Thanks a lot.

Today I want to tell you which three indicators we at trade the traders mainly and predominantly use for all our analyses, but also in the implementation process when we trade and if we wanted to count order flow as an indicator, then we would have four, but as static tools we use three. And I want to tell you a little bit up front about why that is. The market profile gives us insight into where a market has spent, how much time, which participants are technically speaking currently dominant, where do we have selling tales, where do we have buying tails, meaning strong highs or strong lows? Where do we have exactly the opposite weak highs and lows, which trader groups dominate such formations? Yes, and what can we derive from that? These are questions you should be asking yourself. In addition, of course you need to know that there are single print areas, areas where a market has not stayed longer than 30 minutes. These are individual letters which I'll gladly explain on the chart in a moment. And all of this gives us insight into who is dominating the market today. Is it the strong hands or the weak hands? And then of course we can also derive from this, especially if there are discrepancies with the next topic, the volume profile, whether there are periods where a market has lingered for a long time but perhaps hasn't generated that much turnover. And on the other hand, let's move on to the next step. Why do we use volume profiles? As I clearly explained in the previous videos, the volume profile shows us the hard boundaries revealing where markets are out of balance from a volume perspective, where they are in balance. And here the so called point of control is crucial for us, as well as the value area high and the value area low of the corresponding volume profile. And yes, you can display this in different time periods, whether it's the weekly chart, the monthly chart or the daily chart. It always depends on which time frames we want to trade in the next Step. The next indicator that's interesting for us is the footprint. And the footprint is nothing more than the 5 minute, 30 minute or hourly chart. Again, it depends on which time frame we want to trade in. And it shows us where traders have done their business in the recent past, where a lot of volume has been generated and where perhaps not much has happened. And that's very interesting to know because then you can build combinations with the corresponding price areas where such volumes occur or where there is little to no volume. And it's exactly these three indicators that I want to focus on today. To conclude, on the topic of order flow, I won't be covering it in detail today, but with order flow, you simply have the ability to read the current moment of the market, what's happening right now. And there you get even more great information, for example, about absorption, about speeds. And besides that, there are, I don't know, Serge always says, I think, almost 50 different patterns where you can detect spoofing and all sorts of things, even though that's of course forbidden, where you can see where iceberg orders are placed and how they're being traded. And the footprint chart, to take a step back, simply shows us what has actually been traded. And that is also very valuable to us, especially with regard to pullback trades. But enough with the explanation. Let's take a look at the different concepts visually. Here we now have a representation of market profiling. I emphasize this because this is the market profile itself.

And we've included it directly in the chart, the volume profile, so that we don't have too many concepts with thousands of charts that would then show us different pictures. For example, what you can see very well in this image here is this is the market profile.

And the dark blue area that you see here is actually representing the volume profile. You can very clearly see in this section that when it comes to the content concept of balance, both of these are for the most part roughly the same. This means that both the volume profile and the market profile give us the same information about the corresponding price levels. Now let's look at an example where that's not the case. And that's always very interesting when you can see something like that.

So here, once again, as you can see, we have the market profile right here.

And here we have the volume profile.

So what's interesting for us now, what's different in the end? Not much, but we can see very, very clearly, for example, that here we have the point of control, that is the area with the highest turnover on a time basis. And here the area with the highest turnover on a volume weighted basis. This isn't extreme yet, but it's an initial indication that during this period here, alpha, the market spent a lot of time, but the turnover, most of it happened here. This means that the probability that an aggressive player had to build up large positions in a short period of time is simply clear. But let's take a look at an even more extreme example. Here we see the market profile.

And here we can clearly see the significant point of control which is identified from the market profile.

And here is the point of control from the volume profile. I haven't marked it blue now, but that's the corresponding volume profile.

And here for example, you can see that there is a large discrepancy. And when we have such market environments, it's very important to look at why significantly more was traded here. And such trend profiles, which you can clearly see here, give us different ways to evaluate markets. Because we have two major distinctions, especially when we're working with the market profile. On the one hand, we have so called balance profiles. There are a few different forms of these. And then we have so called trend profiles. And trend profiles always emerge when aggressive market participants come into play. And then we have so called single print areas. These are the blue ones here. These blue lines here simply show where the market did not stay for longer than 30 minutes. And what you can also see here is that there is also an aggressive buying tail. So many letters or dots depending on how you display the market profile that are in a row. These merely actually occurred without the market spending a longer period of time at this price level. What other information do we get when we use market and volume profiles like this, for example, we clearly get the so called value areas. You can display them using the market profile, in which case they are time weighted. You can also display them using the volume profile, in that case they are volume weighted. We prefer the volume weighted approach. That means in the market profile we look at who is currently dominating the market and we use the hard boundaries from the volume profile. This then gives us great insight into where a market is being traded aggressively and whether the market is imbalanced there or not. Another great insight we can derive from this is when such value areas shift here you can see it very clearly. And you can also see that the market was traded very aggressively to the downside through this single print area. And for us this means that the market has simply accepted a new value area from this point on. And a new value area that is accepted means new fair prices. And now let's switch things up and take a look at what we can derive from this. For example, in a very simple line chart. When we know something like this.

Here, for example, you can see very clearly that a market dropped down here and accepted new prices right here. Then it shot back up here, but it failed to accept and hold this price level down here again, at least for any significant amount of time. But how does that help us in the future? In the future it helps us because we know exactly that if the market returns to where the fair prices once were, there is definitely a possibility that we might look for a long trade, for example. Then we have to. This is where the footprint comes in. Check whether the market also has fair prices there, and whether the market actually holds those prices, or whether the liquidity completely dries up there. But what we can adapt for ourselves in our own trading and analysis from this underlying logic of shifting price zones is simply the valuable insight that when we carefully look at both ranges and trends in the market, we can identify firstly, fair price levels, and secondly, these are unfair price areas. This understanding helps us recognize where the market considers value to be balanced and where it does not, which is crucial for making informed decisions. And as we've already learned, these price areas are created by big fast hands. And in these price areas they're quite content. That means there was distress here, probably due to some fundamental factor, probably because of some news that accelerated the market, moved it. And then in turn the market goes and says, here we have fair value again. And here the big market participants can once again carry out their supply and demand game, their large positions, simply for themselves, consistently and continuously. That means in these price areas the market participants feel comfortable. And for breakout traders, for trend following traders, it's of course important to know where I am right now. For counter traders, on the other hand, it's important to look at where, for example, I can look for counter trades for myself. And why is that the case? And I explain this why to myself quite simply with the distribution of supply and demand and the associated market participants. And that helps me tremendously. What I just showed you, for example, was a weekly chart. You can also display the whole thing on a daily chart. And that's of course super interesting for day traders because here you can go and see where the opening is, where the closing prices are, and here is the opening, here is the closing price. Sorry, where do I have the corresponding ones value areas? And what does that tell me? Is the market more imbalanced the next day? And if so, does it Move back toward equilibrium? And if so, can I, for example, look for a counter trade there? Or is a market completely out of balance like it was down here? What kind of information can I use for myself there? And now we come to these so called holy setups that are always so highly praised. And I think it's really important to understand why setups are sometimes effective and sometimes not. And if, for example, we look at the footprint chart here, I've used 30 minutes here, five minutes there, you can display it in arbitrary time frames. The question is always, are you a very aggressive trader or are you someone who tends to wait a long time for confirmation? Here we are again at the duality, at the different types of personalities. And what information does that give me? And yes, in the end, the footprint chart gives you the information about where many prices have been traded fairly. That means where was supply and demand really matched at fair prices? Here you can see very clearly that after the market moved past, it shifted this level upward. And when it does that, yes, then for me the probability is simply quite high that the market can now move upward through a shift to higher price levels. And as long as it shows me that these price levels are really rising sustainably, it makes sense for me to follow this trend. Now I can continue to look, for example, in very small time frames where there are finished or unfinished auctions, in other words, completed or uncompleted auctions with regard to the corresponding time frame. And all these things give me information. But the most important information for me is always where are the prices? Fair and unfair acceptance. And here too we can do the following for ourselves. Let's take the 30 minute chart as an example again, and then we can mark it here. Let's assume, for instance, that an incredible amount of trading has taken place in this price area and a market comes down. Then we can identify for ourselves that, okay, prices were extremely active here. So the probability is now given that the market can also come to a halt. There again. And to take a closer look here, yes, for that you need the corresponding footprint chart, which provides you with the so called footprints. To briefly explain this again for beginners, I'd like to add a short illustration. So here we now have a 30 minute chart at the candlestick level. So each candle represents 30 minutes.

And here we have a 30 minute chart.

And as you can see, you don't have any information here about where most of the trading volume actually took place or where there was a lack of liquidity. In other words, where the market was not dominated by many Traders. And if I now look at the whole thing over here, it's exactly the same time frame. Each candle shows me 30 minutes. Then all of a sudden I can see that here and here there were large volumes traded. And here.

And here, for example, there were small volumes traded. Here there were small ones, and here again there were large ones. And as you can already see, when the market moves above these volumes and accepts these here, you get a much clearer picture, which helps you understand that these prices are truly fair. And there are a lot of stories about these fake breakouts and so on. And that's exactly what you can recognize really well for yourself with this price discovery indicator. And then you can also deduce from it whether it even makes sense, for example, to enter a short trade here now, or does it make more sense to go for a trend continuation. And you can read that from these prices for that down here, for example, we also have cumulative delta and things like that. And yes, that simply shows you at the corresponding price levels whether the market was more sold during the respective time frame. For example, here there was a buying surplus of 70 contracts. Here, for example, there was a selling surplus of 236 contracts. And if you look at that, you'll actually see the same picture in the candlestick, but you can't see at all how much surplus actually occurred here and how the market was able to balance it out all of a sudden with much less buying surplus. And if you always consider these things under the premise I've presented here, namely where are prices fair and where are prices unfair, then you will definitely gain a great awareness of how you can adapt all of this for yourself.

And I'd like to briefly show you what it looks like for us when we open up a chart like this to do our analysis. This is how we look at it ourselves. Here we have a completely normal chart which we use to get an overview. Then here we have the weekly market profile, where we can see what the market looks like in the long term, whether it's in balance or imbalance, and who is dominating. And for day trading, we take an even closer look to see which levels are really crucial for us. For example, I then identify the relevant levels for myself and transfer them here into my chart window and take a look. Then I check whether the market provides me with the information I need in the footprint to organize counter trading, trend following, or even breakouts for myself. And this trilogy is just awesome. And yes, I hope you like it. And if you want to learn more about these things, then sign up for one of our free webinars and take a look at what else we reveal there. Because this matrix and this process, the sequence and everything that goes with it, once you understand it, it's a wonderful edge. Yes. Thank you for listening. And I'm already looking forward to presenting the next webinar to you. And I wish you a great end of the week. And I hope that all of you have lots and lots of great trades that work wonderfully, and that our expertise here gives you an even deeper insight into how simple markets actually are. When you really think through the logic of supply and demand for yourself and for and that maybe it's not always effective to just trade technical structures or some indicators which are based on the past, but instead, use smart indicators, use smart tools that give you information about whether supply and demand are in balance. Thank you very much.