Each day I spend time finding the best charts, talking to other trading experts for second point of reference, and using my Volume Profile Indicator to develop a scalding-hot watchlist of the stocks most likely to pop for profits at the close.
It all starts with the Volume Profile. Here are 11 Volume Profile Terms you NEED TO KNOW to trade the Volume Profile like I do:
Volume Profile Terms to Know
- Volume Profile - Measure of what price has the most volume.
- Value Area - 70% of where volume is trading
- Value Area High - Top of the value area. Will act as support or resistance depending where price is located.
- Value Area Low - Bottom of the value area. Will act as support or resistance depending where price is located.
- Value Area Breakout/Breakdown - When price leaves the value area.
- Point of Control - Which price has the most volume.
- Gap Trap - When price enters a thin zone for an extended period of time.
- Uppercase B Volume Profile - Two strong volume nodes at opposite ends with a thin zone in the middle.
- Top Shelf Trade - Confluence area of support with Voz's favorite indicators.
- Boss Trade - Bullish uptrend supported by volume patterns.
- Socialite Trade - A stock that is ready to breakout due to increased social media mentions.