Trader Dale Volume Profile

Volume Profile
Let me now explain the logic behind this setup. There are two reasons (factors) why the price
reacts to the volume zones so well. This reasoning doesn’t apply only to the setup #1, but
also to all the other volume setups I am going to show you later.
Reason #1: Strong buyers/sellers who were accumulating their positions are likely to defend
their positions and their interests. So, when the price returns to the volume accumulation
area, strong buyers/sellers start to defend their positions aggressively. This means that strong
buyers start aggressive buying activity to drive the price upwards again. Strong sellers defend
their short positions by aggressive sell-off which moves the price lower again. Here is a picture
to demonstrate this (long trade scenario):
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