Volume based price action

The only data a trader can base his decisions upon are price, time and volume. Yet many traders don't use the latter, they don't use it at all or they only use the traditional volume bars. A trader should be aware those bars are only based on volume at a certain time, not volume at a certain price. This means the majority of traders use only price and time to trade, this gives you a disadvantage. And then there is also an infinite amount of traders who use their beloved indicators, indicators like rsi, macd, bands and many others. All these indicators calculate their levels by time and historical price, how are you going to foresee the future if you base your decision on history. To me a lot of indicators are totally pointless, they add no value to your trading. The only purpose is to make you feel in control.
A trader should only use Price action and Volume to predict future price.

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So why volume you ask?

5-10% of all adresses own 90% of bitcoin. This means ordinary traders are not able to move price, so why would you trade the same way as ordinary traders trade. You need to understand what the big players do, only that way you can figure out the reasons why price moves certain ways.

"If I had an hour to solve a problem and my life depended on the solution, I would spend the first 55 minutes determining the proper question to ask, for once I know the proper question, I could solve the problem in less than five minutes."
Albert Einstein

This is why I want you to ask the following question:

What is the biggest problem of an institution?

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Yeah I put that there so you had to think for yourself ;)

The Answer:
Size, large capital.

They need time to enter a position if they want to enter it at around the same price.
An institution needs to enter a position unnoticed, they don't want to alarm the market of which side they are on. Because if the market would know price would move and they would be unable to fill their positions.
This means a institution always has to enter most of their positions in a range or sideways price action. That is the reason why sideways price action is never boring.

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Now lets divide the market into parts. This is a random PA area inside the previous range.

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Now we know the market has 3 major phases and we know what likely is happening in those phases. Next step is to investigate what the institutions are doing and where they are taking their positions. A tool to do this with is Volume Profile Fixed Range

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Volume Profile is an advanced charting study that displays trading activity over a specified time period at specified price levels.

POC is the level of price where the most trading activity occurd inside the fixed range.

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DemKos

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DemKos