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Trader Dale Volume Profile

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Price Action<br />

How to implement this into trading:<br />

Now, you know the difference between strong and weak highs and lows. Strong highs/lows<br />

are strong support/resist zones because they mark places in the chart where aggressive<br />

buyers/sellers were present.<br />

Weak highs/lows are places with no aggressive market participants present.<br />

I don't suggest that you trade every strong high/low you see. I suggest that you are aware of<br />

them in your trading and that you adapt your strategy accordingly to the strength and<br />

aggressiveness of how the swing highs/lows were formed.<br />

For example – imagine you are in a long position and that you see that the price is approaching<br />

an area in which aggressive sellers were (strong high). Being aware of this strong high, you<br />

quit your position before it reaches this area. This is how you use knowledge of strong high to<br />

protect your profit and exit the trade before the position runs into a “danger zone“ ( =<br />

resistance zone created by strong high). Here is an example:<br />

42

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