Trader Dale Volume Profile
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<strong>Volume</strong> <strong>Profile</strong><br />
“Thin profile“<br />
Thin profiles appear when there is a strong uptrend or a strong downtrend. Thin profiles are<br />
thin because one side of the market is very aggressive and moves the price very quickly in one<br />
direction. There is not much time for volume accumulation because the market is moving too<br />
fast. For this reason, there are usually few places with smaller volume clusters but without any<br />
major volume accumulation area.<br />
Most significant places in a Thin profile are places where the price stopped moving for a while,<br />
and the <strong>Volume</strong> <strong>Profile</strong> made “volume clusters.“ In these volume clusters, aggressive market<br />
participants were adding to their trading positions to participate even more in the trending<br />
market. If the price returns to these S/R zones (to the volume clusters), these aggressive<br />
participants will probably become aggressive again and add some more volumes to the market<br />
to defend their positions. This helps to move the price in the direction of the trend again.<br />
One of my trading strategies is based on trading the volume clusters. I will talk more about it<br />
later in this book.<br />
Remember:<br />
<br />
<br />
Significant volume clusters in the uptrend (in a thin profile) are good support<br />
zones.<br />
Significant volume clusters in the downtrend (in thin profile) are good resistance<br />
zones.<br />
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