Trader Dale Volume Profile

Volume Profile
Volume Setup #1: Volume accumulation setup
As I said previously in this book, the big institutions who move and manipulate the market
build up their massive trading positions in sideways price action channels (rotation areas).
After they accumulate enough volumes – meaning after they fully enter their positions, then
they initiate strong and aggressive buying or selling activity to move the price. They strive to
move the price in the direction of their newly accumulated positions. Based on this, we know,
that if there was a sideways price channel followed by significant uptrend, strong buyers
were accumulating their buying positions in the price channel. If, on the other hand, there
was a sideways channel followed by a strong sell-off, then we know, that strong sellers were
entering their selling positions in the channel.
Here is an example of strong buyers entering their positions in rotation area:
Here is an example of strong sellers entering their positions in rotation area:
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