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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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