Trader Dale Volume Profile

Position management
Right now, as I am writing about this topic, I have just quit a long position on the USD/JPY which
was based exactly on this approach. Pretty nice coincidence, don’t you think? Have a look at the
trade below (my long trade was based on the Setup #2: Trend setup):
The general rule for the Volume-based Profit Target is to place the PT a few pips before the first
significant volume area that stands in the way of your trade. If the closest area is too close (let’s
say that less than 10 % of average daily volatility), then don’t take the trade. Your PT would be
just too close and the potential gain from the trade wouldn’t be worth the risk.
Stop-loss placement
Fixed Stop-loss
This way you adapt your SL to the volatility of the market that you trade. You do it, for example,
using the ATR as I showed you earlier. This way, you will use the same Stop-loss for all your
intraday trades – for example 10 pips.
This method makes your trading and your decision making the process easier because you don't
need to think about your SL setting in every single trade.
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