Key Components for Setups in Volume Profiling | Webinar with FuturesTrader71 & Convergent Trading

Tune in to a special Convergent Trading Public Webinar about Key Components for Setups in Volume Profiling. Hosted by FuturesTrader71 on April 14, 2021, we delivered a jam-packed public webinar about this popular approach for futures trading and what goes into creating a volume profile trading strategy.
During the event we covered:
✔ Volume Profile basics
✔ How the auction develops over time
✔ How large players reveal their intentions on a day-to-day basis
✔ How to recognize and take advantage of the traces that the major players leave behind
✔ Key Setups that combine Volume Profile with Order Flow
Find full event details and notes in this accompanying blog post: convergenttrading.com/key-vp-...
If you enjoyed this recording, Subscribe to our channel for more futures trading content, and join our mailing list to hear about upcoming public webinars: go2ct.pro/newsletter
Chapters:
0:00 Intro
4:25 Volume Profiling Overview
19:45 Balance vs Imbalance
28:00 Trading Narratives
33:15 Example from current market
42:42 Areas of the profile that matter
44:46 Setup Example 1 - Double Dist. LVN Fade
50:58 Setup Example 2 - The "Ledge" Trade
58:50 Pop Quiz
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*RISK DISCLAIMER: Trading Futures and Options on Futures involves substantial risk of loss and is not suitable for all investors. Opinions, market data, and recommendations are subject to change without notice. Past performance is not indicative of future results.*

[@jrjames5148]

I mean just this video can be a game changer in your journey as a trader!

[@rlfx]

So many years of trading the market looks like this ,simple, however for us beginning ,unfortunately we have to go through the congnitive dissonance until he get there. absolutely awesome video. I'm a long time follower of your work I just hope to see more from the execution side.

[@bryfryable]

Thanks for this. I am more or an intermediate trader. I thought that price action was all traders needed to know about the market cause candlestick patterns and chart patterns really give huge indications of where the market is headed. However, this really showed me that it price action lacks a key component that is neccessary to know to get the entire grasp, which is knowing the true volume and psychology of what's going on under underneath. I can see how using price action in conjunction with understanding volume can be a very powerful way to trade. Thanks for this!

[@andrehendricks8044]

Awesome video

[@Eastcoast_Rds]

thanks FT

[@togoharu7002]

awesome video, thank you FT71

[@RayAntG]

Watched this a few times already and I’m still picking up on things every time. Thank you 🙏

[@ConvergentTrading]

Glad it was helpful! Thanks for checking it out!

[@paulfranklin2542]

Great volume profile review - thank you!!!

[@ConvergentTrading]

Glad it was helpful!

[@1998trades]

Great info!

[@abolfazz6316]

hey, tnx for the great content. i wish you could upload more of these ,ty

[@ConvergentTrading]

More to come!

[@knguyen2719]

@25:13 you explain that the change from 3 consecutive b-form to P-form shown a changing state, indicate there could be a stall. From my view is the P-form created by the price change, price could not reach a higher level, so can not form a new HH, and close lower. So what comes first the price change or the volume change? I would say the price change, could not form a new HH, hence close in consolidation or a lower level, and because of the price change negatively the P-form is created, so the VP is still a lagging indication,

[@knguyen2719]

pls How could I set my trading view chart like you have in example at 33:24. I try all the volume profile but could not see similar blue line graph

[@elitetrader9865]

This just revultionized my trading.

[@ConvergentTrading]

Awesome! Love to hear that!!

[@The__Bandit]

@34:20 with your 4 tick renko chart, do you no have the overnight session on your charts? or just RTH session? thanks

[@ConvergentTrading]

That was the cash/RTH session on the screen at that time-stamp. We certainly look at the overnight session as well, but that particular chart was just RTH sessions.

[@nathane2890]

Nice video

[@ConvergentTrading]

Thanks!

[@HumbleWordsmith]

Hey FT, hope you are well. Found you through your Podcast appearance on “Chat With Traders” podcast. I have been researching market profile for a few years now. When i hear you on Podcasts use the metaphor of being in a bar fight, and fighting along side the bigger dudes - im assuming, by this metaphor you mean that you trade alongside the market makers and trade in the same direction as them? Would i be correct in assuming that you choose to trade around the point of control because thats where the people who control the market trade from?

[@ConvergentTrading]

Hi Humble Wordsmith, I think this is slightly misconstrued. The analogy here is more about trading with the side of the market (longs or shorts) that are showing more strength. This concept is independent of market makers, the edge of a market maker would be to not reveal themselves and move a market, a market maker also would often not have a directional bias. So it would be difficult to detect them in real-time on a consistent basis, and also something that would be difficult to yield an edge from. The volume point of control is an area that you know a higher volume of trades has transacted at before. Therefore it is more likely that participants are willing to transact in this area again. That doesn't necessarily mean to the long or short side, but the POC can be a potential support/resistance area.

[@rockroll7649]

Which TS volume/market profile is the presenter using? Most of the decent ones are all subscription, so I assume this one is too.

[@ConvergentTrading]

The software used in this video is Investor R/T by Linnsoft - however many platforms are now adding volume profile to their offering as well.

[@phalanxtrader]

Hi, which trading/chorting tool do you have in use?

[@ConvergentTrading]

Hi, this video has InvestorR/T on display - we use a variety of platforms though, you can find our recommended tools and software on our website: community.convergenttrading.com/recommended-tools/

[@UnderTaker-pz1kx]

Why price is rejecting LVN ? Is it becouse it is extremety of HVN ?

[@ConvergentTrading]

An LVN describes an area where the market previously did very little business at a price level/area (i.e. put in a low amount of volume) relative to volume traded at other prices. This may possibly indicate that price is unlikely to stick around the area long if there is not much willingness by the market participants to do business at those prices. So price "might" reject from an LVN because it is an area that participants in the past did not show much willingness to trade volume. The market also has potential to move quickly through an LVN as it does not offer much in terms of support or resistance.

[@markm1461]

It’s the boring things many won’t do to get ahead

[@MalibuJamie]

25:24 The candlesticks reveal the story. But you can’t just look at the candlestick for the day. You have to explode it out into hourly candles, etc. I mean, c’mon.

[@itm_randy]

28:00 minute mark

[@ConvergentTrading]

Trading narratives are extremely key!