throughout my years of day trading I
have been anti-using any type of volume
indicator and even when you get on
trading view the first and only
indicator that you get on a brand new
chart is volume either I never knew how
to read it properly or it just didn't
make sense to me but recently I found a
volume indicator that really helps me
find areas where the price will most
likely reject or just Cascade from
Welcome Back to the channel everybody my
name is Artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable so if any of you guys have
seen any of my live streams over the
last month you know I've been using an
indicator called volume profiles let's
get into the charts I'm going to show
you how I use it how I set it up and why
you should probably use it too so this
is a brand new chart I have my chart
colors set to yellow and white there's a
psychological reason for this which I
won't get into but it's better to change
it from red and green when you open up a
new chart the only indicator that you
get is volume the volume is shown down
here at the bottom in red and green
candles basically what I'm getting here
is a little bit of volume and a lot a
bit of volume but you would think at a
lot a bit of volume the price would do
something more than consolidate which is
why I hate this and I immediately exit
out now to find the volume profiles
indicator that I use click on the
indicators tab type in volume profile
it's going to be in the community
scripts and the author of this indicator
is KV for coins add a star next to it
because it's going to become your
favorite now what I want you to do is
click the volume indicator twice that
way you have two on your chart currently
we are sitting on a 15 minute time frame
and as you guys can see here on the
right hand side of the screen you get
volume spikes these are areas of volume
at these specific price levels I like
the volume on the chart so that it shows
me which candles which areas which zones
are getting the most volume but on the
standard settings you only get one solid
color of where the volume is at the cool
thing is that within this range this
shows you an orange line where the
highest volume is and if price is
rejecting the highest volume area that
means that currently the price will
probably continue down a little bit of a
trap big volume down Wick up into the
high ball volume and down but how do you
know if this is buying or selling volume
that's why we have two volume profiles
up on the chart now if you click the
settings wheel you can adjust the
settings of the indicator all of these
stay the same except for the bar
horizontal offset I like to set this at
100 because it moves the volume profile
further to the right and does not
overlap the price the next thing that
you're gonna do is change the delta type
to bullish now my bullish candles are
yellow so I'm going to change the bar
color to yellow and then the POC color
is going to be orange I don't know what
POC stands for maybe point of control
but that's where the highest volume of
the bullish volume is going to be now go
back up to the indicators on the left
hand side of the screen click settings
on the second one and you are going to
change this delta type to bearish and
again the bar horizontal Offset you are
going to change to 100. my bearish
candles are white so what I'm going to
do is leave this bar color on the grayed
out but I'm going to change the POC
color to white now you guys can see here
I have a yellow volume profile and a
gray volume profile this orange line
right here is going to show me the
maximum volume in this area that
occurred that was bullish volume and
this white line is going to show me
bearish volume so bearish volume
occurred we got this huge candle the
buyers could not resist the sellers in
this area and it kept going down Wicked
up to retest it in the middle of
Frankfurt session and is now continuing
down now we are on a 15 minute time
frame so if you are selling this Zone
because it's showing you on your volume
profiles how do you know what your next
Target is going to be it's simple just
go up to a higher time frame like the
one hour the four hour or the daily and
you will see on the four hour time frame
where the highest volume is right now we
are in this dead zone of volume so it is
most likely to continue down from this
area to the next level where the buyers
are at and you can see that through this
volume profile so if you were to enter
in a short position after it left that
zone you know that this area is going to
have some buying volume so it will most
likely slow down or reject off of this
area the cool thing is now that you know
this you can go back to the 15 minute
time frame and adjust your stop loss to
above that Wick where everybody got
trapped now you're looking at a one to
three risk to reward on the higher time
frame now if you use this in Confluence
with marking up support and resistance
zones on a higher time frame and then
watch as price plays out you can see
that this area was a known area of
support and as it came down again there
was very low volume it's most likely
going to disrespect this Zone and what
it did was break through retest and
continue down when you're looking for
zones especially when trading smart
money concepts of double bottoms and
areas of support and resistance you will
know that due to low volume this is not
a viable option to set up an order to
buy at this Zone this indicator will
keep you out of a lot of trouble anyway
I hope that explained enough for you
guys if you have more questions please
leave them in the comment section down
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