Price Action Principles - Trading a Range

Module 3
Volume Profile & Tools

@Mindset_BTC
Disclaimer

Please note that any trades shown in the following content are for educational purposes only;
Any risk taken in following trades or setups that are shown for educational purposes is entirely borne by you, with no assignment of
responsibility placed on me, MindsetBTC;
I am not a financial adviser, and as such, will not provide advice that could be construed as specific in nature. Rather, this advice is
intended to be general in nature as an education and entertainment resource;
I do not recommend the purchase of any trading pair, investment, ticker, or any other financial instrument that could appreciated or
depreciate, and as such, will not be held liable for users investments, good or bad;
Do not blindly follow trading calls by anyone. Instead, do your own research;
Past performance is not a guarantee of future results;
and;
This content is strictly provided for educational & entertainment purposes (in case I didn't mention this already)
Acknowledgement
I would like to acknowledge the people who have had a massive influence on me as a trader, some of whom I would call mentor, others who have inspired me
to take action against no one else other than myself in improving and learning everyday

The 2017/18 Market - you gave me the hunger to learn how to trade after getting my arse kicked by you!

Crypto Cred - your videos and educational content are what set me off down the rabbit hole of learning how to trade

Trader Mayne - after finding your Discord, and observing through your public streams and charts etc that we had a similar learning
experience with trading, I dusted off my 2017/18 trading wounds and got back into the saddle

Rektproof - a PA legend who truly inspired me to take action through his public content and approach to trading. Truly.

Emperor BTC - No thanks are enough. He gave me a 'voice' to share my passion of trading and eduction with you all, and am forever
grateful for this

Inner Circle Trader - the man is truly a legend who I learned many concepts from, many of which are shared in this educational series.
Many hundreds, if not thousands of hours spent digesting his material has helped me put this course together for you
The Goal of This Course
It's to explore, in depth, each individual relevant puzzle piece that are in my opinion critical in gaining a framework of understanding
with regard to Price Action trading, particularly, trading a range

As a recap, we'll be exploring the below in the form of modules:

Market Structure & Fibonacci

Orderblocks & Breakers

Volume Profile & Tools (this module)

Ranges & Liquidity Targets

Trade Management

Putting it All Together

With that being said, let's get into the course

Agenda:

Part 1 - What is Value Area Trading (VAT)

The Value Area

Value Area High (VAH) & Value Area Low (VAL)
Point of Control (POC)
High Volume Nodes (HVN's)

Part 2 - Volume Profile Tools

Volume Profile Visible Range

VAH, VAL, POC
Fixed Range Volume Profile
VAH, VAL, POC
Volume Profile Session Volume
VAH, VAL, POC, Poor Highs & Lows

Part 3 - FRVP & VPSV Dynamics

Self Learning
Conclusion
 Part 1

What is Value Area Trading

What is Value Area Trading (VAT)

Value Area Trading, as defined by Tradingview is: (we'll use all their Volume Profile tools after all, so the definition makes
sense)

Volume Profile is an advanced charting study that displays trading activity over a specified time period at specified price
levels.
The study (accounting for user defined parameters such as number of rows and time period) plots a histogram on the
chart meant to reveal dominant and/or significant price levels based on volume.
Essentially, Volume Profile takes the total volume traded at a specific price level during the specified time period and
divides the total volume into either buy volume or sell volume and then makes that information easily visible to the trader.

VAH's could = Shorting Opportunities

VAL's could = Longing Opportunities
In My Own Words:

In a given or visible price range, the Value Area can be defined as being where 70% of the volume was transacted in said
given or visible price range
The remaining 30% of the volume transacted in a defined or visible range is known as the overall Value Profile
At the extremity of a Value Area are the Value Area High (VAH) and Value Area Low (VAL), (top and bottom of the Value
Area respectively)
Within the Value Area, a Point of Control (POC) can be defined as where the most volume occured compared to price in a
given or visible price range
Outside of a Point of Control, there can also be High Volume Nodes (that are similar to a POC, but not as strong in terms of
overall volume traded within the Value Area)
The Value Area is not to be confused as the defining a metric of how long price traded in an area, rather, it captures how
much volume was traded at respected price levels during a given or visible price range.
Time Price Opportunity (TPO) is what is known as the time based strength factor of a given instrument or trading pair
The Value Area (This is the VPVR Tool - We'll Cover This Further Down)
Value Area Highs & Lows

The Value Area is comprised of the following:

Value Area Highs - the upper most extremes of a Value Area

(as denoted where the blue and grey bars stop up top, as
well as they grey rectangle)

Value Area Lows are the bottom most extremes of a Value

Area (as denoted where the blue and grey bars stop down
the bottom, also denoted by the bottom of the grey
rectangle)

You can see in the chart above where the VAH and VAL are
denoted by the top and bottom of the grey box

In the chart to the right, we’ve set up the Value Area to be

68% of the given volume, rather than 70%. This is simply to
give a slight edge in the market
Point of Control (POC)

The POC is simply where the most volume occured compared to price in a Value Area / Value Profile

You can expect a lot of interest, support, and resistance at these levels

The Point of Control is denoted by the red line that traverses across the chart on the previous page and intersects the grey box (as shown
below from a zoomed in perspective)
High Volume Nodes

High & Low Volume Nodes can be defined as areas where

significant amounts of volume occured within a given or
fixed Value Area, but not to same extent to the singluar
Point of Control

High & Low Volume Nodes are not to be confused as

Points of Control (as a POC is where the most volume
occured compared to price in a Value Area), but they are
still areas to be aware of when trading as they will also be
aligned with potential support and resistance areas

You can have HVN very close to a POC, so is best to be

aware of them (as show in the image on the right)
 Part 2
Volume Profile Tools

Volume Profile Visible Range (VPVR)

 1) First select the Function Box from the top menu
Volume Profile Visible Range Tool Set Up Then type in VPVR
Select Visible Range

2) Amend the Style tab per the below settings

3) Then type in VPVR for Volume Profile Visible
Range
1 Select Visible Range
2

3
Volume Profile Visible Range Tool

When you show the VPVR as being visible from your

suite of Tradingview tools, you will see an image as
per the right

The premise of utilizing the Value Range is that the

VAH is where price can be interpreted as being over
valued, and the VAL can be interpreted as being
undervalued

The mid range is where price is thought to be ‘Fair

Value’

In essence and conjunction with other confluent

factors, you could look to short at the VAH, and long
at the VAL (remember though, confluence is king!)

You'll see in the slide below that the image at the top
of the module has been reshared given the context
that has been shared for this sub-topic
Fixed Range Volume Profile (FRVP)
(Free on Tradingview)
Fixed Range Volume Profile Set Up
1) First select the side menu
Select the 7th option down (where the long
and short tools live)
Then select 10th icon down, FRPV

2) Amend the Style tab per the below settings

3) Input settings for information
2

1
Fixed Range Volume Profile

FRVP works in much the same way as

VPVR and VPSV, but the difference is
that you select where you would like to
apply a Value Area time band

When you have applied the FRVP, you

will see the below, where you will have
a Value Area High, a Value Area Low,
and a Point of Control for you selected
time band

See below for how to use the tool in

terms of set up etc
Fixed Range Volume Profile

Once you've selected the FRVP tool,

you select the range you want to
utilise the tool on, ie the start and
finish of your area of interest

If you refer to the chart on the right,

you'll see that I've 'pulled' from one
point and ended at the other
Fixed Range Volume Profile

Once the FRVP has been set up, you'll see the
following:
Volume Profile Area
VAH
VAL
Point of Control

As previously covered in this module, you will

notice how the actual price high and lows
respect a range to a certain extent based on
the FRVP area selected

Admittedly, when looking back retrospectively

at price & previous trading, it's obvious, but
this tool can certainly help to frame further
confluence with ranges etc
Volume Profile Session Volume
(VPSV)
 Volume Profile Session Volume Set Up
1) First select the Function Box from the top menu
Then type in Session Volume for Volume Profile Session Volume
Select Session Volume

2) Amend the Style tab per the below settings 3

2
3) Input settings for information

1
VPSV - Overview
When selecting the VPSV, you will
automatically be given a series of
sessions that are defined as a 24
hour period from UTC 12am to
11:59pm (as denoted in grey
boxes as an example to the right)

You will notice that there are a

series of red lines that are
extending to the right. These are
known as Naked Points of Control,
and they are where price has
moved away from a Point of
Control, but has not yet returned
or revisited this area (ie traded
through)

Note where the red lines (nPOC’s)

have been touched; the lines no
longer extend to the right

VPSV is basically a series of

FRVP's if you manually set these
up across a 24hr period (you
should recognize the similarities)
VPSV - Detailed Look

In this detailed breakdown

(which is just a zoomed in
version of a singular session),
you'll notice the same key
components as the FRVP and
VPVR
VAH
VAL
POC

As mentioned in the previous

slide, you'll already no doubt
start recognizing that the
volume profile tools all share
the same fundamentals, but are
just used in different contexts
VPSV - nPOC's

Points of Control & Naked Points of

Control
Per point 1 of the chart to the
right, you'll see that each Session
denoted in the VPSV has the
option for POC listed (check
settings section above)

When price moves away from a

POC without experiencing /
interacting with it, it becomes a
Naked Point of Control (nPOC) ie,
not touched

nPOC's can then become great

reference points or targets to aim
for when trading

The next slide shows how price

then went to reclaim these areas
/ levels
VPSV - Reclaimed nPOC's
Following on from the previous chart,
you can see that price comes up to
claim previous nPOC's, and quite
precisely in some cases as is evident

After a series of rallies or retracements,

it's likely that you'll find one nPOC left
behind as price moves away from it. It's
only common sense really though that
there is a high or a low that could then
be revisted later on

Note how in the charts shown, the

nPOC’s have been hit as price returns up
to them. “Fair Value” comes in to play
here, and we could have expected a lot
of liquidity at these levels where price
is drawn to and subsequent nPOC’s are
reclaimed

Don't solely rely on nPOC's as a target

though; they are great to assist with
trading, but as always, confluence is
king
VPSV - Poor Highs & Lows (1 of 3)
With VPSV, I find that it's easier to use as a tool without
the price action visible (chart on the right has PA turned
off, with VPSV only visible)

Although Volume Profile and Time Price Opportunity

(TPO) are different in the fact that Volume Profile
captures the measure of volume transacted against
price, TPO measures length of time price spent in a given
portion of time in a session, I still find that the Poor
Highs & Lows (PHL) phenomenon is a somewhat
justifiable comparison for each, with some merit given
for these to be 'filled'

Note that I haven't personally seen this concept

discussed elsewhere before, they are merely just what
I've noted as I've traded, so take from this what you will
(no, I'm not 'claiming' this either!)

The premise of a Poor High / Low (PHL) is where little

volume was transacted compared to the rest of the
Volume Profile (think big wicks up or down, or engulfing
candles etc)

Read on to explore PHL's:

VPSV - Poor Highs & Lows (2 of 3)

On the right, you can see that we're showing poor highs
and lows with a red rectangle

These are areas where price shot up quite fast outside of

the Value Area, where we are left with thin, blue coloured
tails (based on my colouring of the Value Area in this
case)

Remember, the Value Area (based on my colouring) is

defined as the grey columns, with the the remaining
balance of Volume Profile being the blue areas / tails /
columns

From my observations, a poor high or low will be filled as

price seeks to balance itself out

You'll notice in the green rectangles that each

corresponding PHL is filled as mentioned above

I also find that where there is a PHL and a nPOC, this

becomes a great target to work towards in terms of
liquidity (take a look at the second geen rectangle in
from the right where an nPOC and poor high is taken out)
VPSV - Poor Highs & Lows (3 of 3)

Just to show you how much cleaner it is to view

VPSV as a standalone, rather than with price
showing, see the chart to the right

By showing price, it can be quite messy and

confusing, losing sight and value of what the
VPSV offers

As always, it's completely your call with how you

set up your chart, but this may offer some
insight to you
 Part 3
FRVP & VPSV Dynamics
FRPV & VPSV Dynamics (1 of 3)

We explore in this section how you can use

the Fixed Range Volume Profile in
conjunction with the VPSV to get an overall
higher level view on a high timeframe for:
Value Profile
Value Area High
Value Area Low
Point of Control

For example, the chart on the right shows

VPSV from 06 Dec to 22 Dec. The VPSV as
shown is quite confusing if you're looking
for a top down approach to trading, rather
than bottom up

This is where we can introduce the FRVP to

make a bit more sense. We do this by
pulling the FRVP across the area of interest
(both points of the FRVP are shown by the
blue rectangles)
FRPV & VPSV Dynamics (2 of 3)

When the FRVP is overlaid on top of the

VPSV, it certainly does become messy, but
we can grasp an overall picture of where
the selected area's Volume Profile is

What you are seeing here is essentially the

average of the VPSV over this period, and is
extremely helpful in determining higher TF
plays

In the next slide, we see how the overall

FRVP looks without the VPSV, and how a
HTF VAT profile is determined that acts as
confluence when developing a range
FRPV & VPSV Dynamics (3 of 3)

'Naked' FRPV (ie no price)

FRPV Confluence for a Range (price shown)

Self Learning

The above is pretty intense information wise, and the best way to wrap your head around it is to put it into practice

Just note though that none of what has been shared above should be used exclusively, rather, you should utilise these
tools in conjunction with other items of confluence as we explore in this course

Note also that FRVP is a free tool on Tradingview, whereas the VPSV and VPVR are premium items (ie you need a paid
subscription with them)

So go on and have a crack at the below items that we've explored in this module
FRVP's
VPVR's
VPSV
FRVP / VPSV Dynamics

In the next module, we'll be exploring how the Volume Profile Tools can be used within ranges. This is more of a warm
up intro to the concept, and we'll certainly take a deeper look at how to use these soon
Conclusion

The above topic is not intended or expected to be understood in one reading of this document. Although the principles are quite simple in breaking down
the key components of time, Value Area, VAH, VAL, POC, nPOC’'s, and types of tools for Value Area Trading, it's about putting them into practice to
understand them. You'll see how we do use them in the final module of this course

The key principle with Value Area Trading is that you build an idea around shorting at VAH, or potentially longing at VAL. This isn’'t to be taken as a given,
and we need to see many factors of confluence built and layered into our trades before we take them!

Still to go in this course:

Market Structure & Fibonacci

Orderblocks, Breakers, & Fib Dynamics

Volume Profile & Tools

Ranges & Liquidity Targets

Trade Management

Putting it all together

Contact

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