Trader Dale Volume Profile

Position management
Position management
Profit Target
There are two primary ways to determine where your Profit Target should be. It can either be a
Fixed Profit Target or Volume-based Profit Target.
Fixed Profit Target:
This way you adapt your PT to the volatility of the market that you trade. You do it, for example,
using the ATR as I showed you earlier in this book. This way you use the same Profit Target pip
value for all your intraday trades – for example 10 pip PT for every trade.
This method makes your trading and your decision making the process easier because you don't
need to think about your PT setting in every single trade.
Volume-based Profit Target:
In this case, your Profit Target is different for each trade. You determine it by using the Volume
Profile. The logic behind this is that heavy volume zones are strong support/resistances. For that
reason, you want to place your Profit Target in front of such support/resistance, because there
is a risk that the price will turn at the S/R zone and your Profit Target won’t get reached.
Have a look at an example of a long trade that I took a few days back:
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