Video summary

How I Actually Use Volume Profile (Orderflow + Execution Explained)

Main summary

Key takeaways

Finance

Finance-focused summary (Volume Profile / Order Flow Use)

What volume profile is (framework concept)

  • Volume Profile = a “map of participation”: it shows where traded volume occurred at each price level over a defined time period.
  • In auction market theory terms:
    • The market spends time and volume where value is accepted.
    • It moves quickly through prices where there’s less agreement.

Core components inside a volume profile

  • POC (Point of Control): the price level with the highest traded volume in the profile.
  • Value Area High / Value Area Low: the price range containing roughly ~70% of traded volume (the accepted trading range).
  • High Volume Nodes (HVNs): areas of prior acceptance where the market spent time; can lead to slowing, rotation, or re-acceptance.
  • Low Volume Nodes (LVNs): areas of thin participation where price moved quickly; can result in continuation or sharp reactions, but their behavior is not guaranteed.

Step-by-step / methodology implied by the presenter’s approach

3 ways the presenter uses volume profile (stacked by timeframe)

1) Inside every execution candle (footprint / “miniature” volume profile)

  • Used primarily on 5-minute candles for execution refinement (sometimes 15-minute or hourly).
  • Not used as a standalone trade signal.
  • Main execution read: effort vs result
    • Example logic: high aggressive participation at extremes of a candle without follow-through can indicate absorption.
  • LVNs inside the candle refine entries using a typical two-candle process:
    1. Confirmation candle closes
    2. The entry candle should immediately pull back into the confirmation candle’s LVN areas
  • Requires alignment with broader location + confirmation setup.
  • Emphasis: LVNs are candidate locations, not automatic continuation/reversal signals.

2) Session volume profile (context)

  • References RTH (Regular Trading Hours).
  • For Nasdaq, uses the New York open as the session anchor.
  • Typically viewed on a 1-hour chart to observe how the day forms and builds value in real time.
  • Tracks:
    • Where Value Area High / Low and POC sit
    • Where LVNs and HVNs exist across the session’s auction
  • Interpretation:
    • Rotation inside value → temporary balance
    • Leaving value and being accepted outside it → potential imbalance developing
  • Important cautions:
    • Touching value area high/low or the session POC is not a trade signal.
    • The POC is a reference, not a “guaranteed magnet”:
      • In balance, price may rotate around it
      • In trends, price may ignore it

3) Fixed range volume profile (structure framing)

  • Draw volume profile from swing high to swing low, then extend it to isolate an expansion leg.
  • Can also be applied to prior ranges such as London or Asia sessions if needed.
  • Purpose:
    • Narrow where participation was thick vs thin
    • Identify the POC of that move for later pullback location
  • Caution: fixed-range zones frame location, but don’t replace broader context.

How the three layers interact (explicit ordering)

  • Before the session: review prior session profile elements (e.g., prior POC, value area, LVNs, HVNs).
  • During the session: watch the RTH session profile build in real time (value acceptance vs rejection).
  • At execution: use miniature candle volume profiles to refine entry timing after context + confirmation are already present.

Key cautions / common mistakes highlighted

  • Mistake #1: Treat low volume nodes as automatic entries
    • Fast-through volume ≠ guaranteed repeat behavior.
    • LVNs are location candidates requiring context and confirmation.
  • Mistake #2: Use the wrong profile for the job
    • Session profile ≠ micro execution tool.
    • Footprint candle ≠ broader auction context tool.
  • Mistake #3: Over-obsess on the POC
    • POC matters, but in trends price may never return.
    • Treat POC as a reference, not a guaranteed target.

Markets / instruments mentioned

  • Nasdaq
  • Trading around the New York open
  • Timeframes referenced: 5-minute, 15-minute, hourly, 1-hour chart
  • Sessions mentioned:
    • RTH (Regular Trading Hours)
    • London session
    • Asia session
  • No specific equities, ETFs, bonds, commodities, or crypto tickers were mentioned.

Numbers / explicit metrics called out

  • Value area described as containing roughly ~70% of volume.
  • No explicit price levels, yields, or performance metrics were provided.

Disclosures / sponsor notes

  • Includes a sponsor segment for Prop Firm Match (prop trading platform comparison tools).
  • The subtitles described trading methods but did not include a clear “not financial advice” disclaimer.

Presenter / sources

  • Presenter: not explicitly named in the subtitles.
  • Source framework referenced: Auction Market Theory (used as the conceptual basis for interpreting volume profile).

Original video