Trader Dale Volume Profile
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Price Action<br />
Sideways price action is a very significant place on all timeframes. It doesn't matter if you use<br />
a 1-minute chart, 30-minute chart, daily chart or a weekly chart. The logic is always the same,<br />
and that‘s why it works so well with all timeframes.<br />
I analyze charts most often on the 30-minute timeframe (intraday trades) and daily timeframe<br />
(swing trades).<br />
Summary: Look for sideways price action areas. Those are very significant places because<br />
institutions are accumulating their positions there. Always watch for such areas, no matter<br />
which timeframe you use.<br />
Aggressive initiation activity<br />
Aggressive initiation activity is basically a significant price<br />
movement or a trend. It is caused by aggressive buyers pushing<br />
the price higher or by aggressive sellers who are pushing the<br />
price lower. This sort of aggressive buying or selling often takes<br />
place after sideways price action activity. What happens is that<br />
big institutions are building up their positions (in sideways<br />
areas), and when they are done with that, they start aggressive<br />
buying or selling to manipulate and to move the price in any<br />
direction they want. This is how they make money. They build up<br />
their positions slowly and unnoticed, and then they start a trend<br />
to make those positions profitable.<br />
Strong uptrend after<br />
a sideways price<br />
action area indicates<br />
that big institutions<br />
were accumulating<br />
their long positions<br />
there.<br />
When the price is moving in a fast trend, there isn't much time to place any more big positions.<br />
For this reason, the institutions need to accumulate their positions before the move.<br />
Below are two typical examples of sideways price action areas followed by aggressive<br />
initiation activity:<br />
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