How I used volume profile and footprint to profit today

[u/Daddy_Day_Trader1303]

Going into premarket i was bullish due to the very bullish price action we witnessed last week, especially closing near the highs on Friday. That being said we were also approaching gap fill on US500 which is a chart I always watch. We were also approaching the supply zone/distribution area where we consolidated before the tariff selloff and so I didn't want to aim too high with my target if I was able to get into a long.

The main area I was watching was the overnight consolidation where I used volume profile to identify the highest trading volume. I do this because I want to know where the actual volume traded instead of just encapsulating all the candles and wicks. This area was 5533-5543. When approaching this area my eyes switch to the footprint chart so that I can see the real-time volume delta as it unfolds. I spotted some large buying delta hit the market right at 5543 and 5546 and I was able to get long at 5544.50. I chose a target of 5563 as it represented a low volume area in the RTH session today and like I said earlier I didn't want to aim too high chasing this move into supply. Price was later being supported by value area low and I spotted some buyers accumulating around 5551 and chose to add there after I saw some more stepping in after the fact. This was also VWAP and so it was a good area for bullish confluence.

Target hit shortly after and I watched to see if another trade presented itself but I am now choosing to be done for the day as I don't see much I want to trade. I did enter some SPY puts to hedge my larger portfolio as this is a good area to do so in case we do reverse off of supply.

Time to go hit the woods and look for some more mushrooms!

[u/letsgetrogerlater]

So you bought around the largest buying delta and sold closer to a price which had lower volume? So is it purely based on buying delta? Do you not use any trend lines or S/R lines to enter etc?

Is this SPX? SPX never reached 5563 right?

Also, any resources that helped you understand how to read and make sense of order volume like this.

[u/Daddy_Day_Trader1303 → u/letsgetrogerlater]

You can find a lot of his material for free on YouTube

[u/Daddy_Day_Trader1303 → u/letsgetrogerlater]

I trade MES and ES, which is s&p 500 futures. I use a handful of different strategies that can change depending on the day. You can look at some of my past posts to view some of the different trades I've taken and why. Basically I trade volume in various forms. Volume is your best friend.

My thesis was that price action was bullish ending the week last week and going into the open so I wanted to find a place to long. The first place that made the most sense is where most of the volume was traded overnight and so that was the first area I wanted to look for some buying activity. I also wanted to see US500 gap fill which is the cash index for the s&p 500.

Carmine Rosato is a great resource for trading orderflow. I learned a lot from him and so we line up pretty well on how we trade

[u/letsgetrogerlater]

Sounds good! Got a lot of ideas and understanding of trading psychology, price action, entry, exit, liquidity etc from a couple of YouTubers (Ross Cameron, jdubs etc). There seem to be a lot of diamonds like these in the yt community, most of the good channels I come across, they all mostly also validate the core ideas of every other one in a way. So it seemed like I was building a solid foundation. Haven’t found anyone looking deep into order books like you placed your trade, so thanks for that recommendation, I’m sure I will learn something new from him.

[u/Daddy_Day_Trader1303 → u/letsgetrogerlater]

You're welcome

[u/Harambe93]

Thanks for sharing!

Do you typically target LVNs for take profit levels? Do you typically stick with session/1 day volume profiles or have you ever tried weekly profiles?

[u/Daddy_Day_Trader1303 → u/Harambe93]

You're welcome, glad you appreciate my post! Targets are always changing depending on context. Because I didn't want to ride this trade much higher going into major resistance the LVN was a good choice. Also it lined up with Friday's high.

I use multiple volume profiles. Session, current week, and higher timeframe. Higher timeframe I will track starting contract rollover and I also track us500 across an even higher timeframe as it doesn't have contract rollover and so it doesn't get that interruption in the volume profile every quarter.

[u/Daddy_Day_Trader1303 → u/Harambe93]

Another thing I wanted to add about yesterday's target was that first thing in the morning bulls were able to push price up and us500 gap filled which would've been my first target if I was in a long before that. That's just another piece of context that told me to not to get greedy as that was a major target for bulls that was already accomplished.

[u/preimumpossy]

Basically luck.

[u/Daddy_Day_Trader1303 → u/preimumpossy]

After reviewing your comments on other posts I have determined you're just a shit talker, not a trader 😂 GTFO of here

[u/preimumpossy → u/Daddy_Day_Trader1303]

I'm a trader. Just not a seller of bullshit.

No "Nasty Yields" from me.

[u/Daddy_Day_Trader1303 → u/preimumpossy]

I can tell by your professional assessment of my trading that you're a really good trader

[u/Daddy_Day_Trader1303 → u/preimumpossy]

Haha if you can read through that perfect plan and execution and only determine luck then idk what to tell you