Trader Dale Volume Profile

Volume Profile
When there is a strong price reversal, we get the information that one side of the market became
very aggressive and strongly rejected some price level. In such case, I am interested how the
volumes were distributed within the rejection. In other words – I am interested in the place
where the heaviest volumes within the rejection were added to the market. The reason for that
is that the place with the heaviest volumes mark the place where the counterparty (the
buyers/sellers rejecting the lower/higher prices) was the most aggressive.
I use the Flexible Volume Profile on the strong rejection area to see where the volumes were the
heaviest. Then I draw a horizontal line from this place and wait until the price comes back again
to this level. When the price hits the level, I enter a trade.
If there is a rejection of lower prices, then I enter a long position. See example below:
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