Using Volume Profile and POC for Trade Entries
2 min Money & business
2 min Money & business
All right. What's this right here? Swing high.
What's this right here? Swing high. What's this right here?
A swing low. What's this right here? Another swing low.
Excellent job. Now, what sentiment is this right here?
That's a bullish sentiment. Very good. Very good. Now, when the sentiment is bullish like this, what do you think we're gonna be looking for, buys or sales?
We're looking for buys. Excellent. We're gonna look for buys.
Now, once we know the direction we want to trade, what do we need to figure out next?
Where to enter. Beautiful. Beautiful. We need to find the best possible entry.
So how do you think we're gonna do that?
Using volume profile. Excellent job. We're gonna take our volume profile and drag it from the most recent swing low all the way up to the swing high.
Mm-hmm. Okay. And once we do that, what's the most important level we're looking for?
The POC. Beautiful. The point of control. That shows us the exact price where the most volume is traded during that entire move.
Got it. So now, instead of just randomly clicking buy, what are we going to wait for price to do?
Come back to the POC. Exactly. We wait for price to pull back into that POC level.
Once price gets there and gives us the reaction we're looking for, what button are we going to click?
Buy. Excellent. We click buy because now we're entering from the level where the most volume was previously traded. Does that make sense?
Yeah. Now, let's say the sentiment is the opposite, right?
Let's say we're bearish. What are we gonna do?
Look for sales. Exactly. And again, we take the volume profile, this time from the most recent swing high down to the swing low, then we find POC.
Wait for price to retrace back into it. And once we get our reaction, what are we clicking?
Sell. Excellent job. Sell. And then we're looking for price to continue down, down, down. And we post these levels for you every day in our free community.
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End of transcript · 363 words
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