Video summary

The Simplest Volume Profile Intraday Strategy for Beginners

Main summary

Key takeaways

Finance

Finance-Focused Summary (Volume Profile Intraday Strategy)

The video presents a beginner-friendly intraday/short-term trading approach based on Volume Profile, using the daily Point of Control (POC) as the key level. The strategy is intended for FX/CFD-style instruments (e.g., EURUSD) and focuses on support/resistance behavior where volume was highest.

Instruments / Tickers Mentioned

  • EUR/USD
  • AUD/USD
  • USD/CAD
  • ES (E-mini S&P 500)

No other tickers/ETFs/bonds/commodities/crypto were mentioned.

Core Concepts

  • Volume Profile: A histogram showing where trading activity occurred.
  • Point of Control (POC): The price level with the highest traded volume (the widest bar). It’s treated as a major support/resistance zone.

Strategy Premise

Price often reacts when returning to the POC because:

  • Buyers defend long positions at heavy-volume zones
  • Sellers exit shorts when price reaches a strong buy-demand area

TradingView Indicator Setup

Uses TradingView: “Session Volume HD” with these settings:

  • Input
    • Enable “extend point of control to the right” (POC line extends until tested)
  • Style
    • Ensure “point of control” is enabled

Step-by-Step Trading Framework (Methodology)

Long Trade (Buy)

  1. Wait for the daily profile to fully form (day over).
  2. Wait for price to move away from the POC.
  3. Wait for a pullback back to the POC.
  4. Enter long when price hits the POC from above.
  5. Trade only the first test/touch of the POC
    • Skip if it’s been tested once already.

Short Trade (Sell)

Same logic, reversed:

  1. After the daily profile completes, wait for price to move away from the POC.
  2. Wait for a pullback to the POC.
  3. Enter short when price hits the POC from below.
  4. Trade only the first test/touch.

Stop-Loss / Take-Profit (Risk Management & Key Numbers)

  • Use fixed stop and fixed take profit based on 10–20% of average daily volatility.
  • Example given:
    • EUR/USD average daily volatility = 80 pips
    • TP/SL = 8–16 pips
    • Example: 12-pip TP and 12-pip SL

With equal TP and SL in pips, the video claims the risk-reward ratio = 1.

  • Recommendation: after initial results, only later try slightly higher risk-reward.

Performance Expectations / Cautions

  • Claim: Profitable in the long run, but not consistent in the short run.
  • Equity curve expectation: periods of multiple losing trades can occur.
    • Rationale: since the strategy is relatively simple, inconsistency short-term is expected.

How to Improve Consistency (Confluence Framework)

Main improvement: require additional alignment (“confluence”) with other tools:

  • VWAP
    • Example: close to weekly VWAP deviation
  • Order flow
    • Used to confirm entries when price is near the level
    • (Entry confirmation details were not covered in the provided text.)
  • Price Action via Fair Value Gap (SMC)
    • Example approach: for shorts, trade from the beginning of the fair value gap

Best practice rule: the more setups pointing to the same level, the better.

Fine-Tuning Process (Backtesting + Trade Journaling)

  • Use an interactive trading journal / Excel-style logging to identify:
    • Which symbols perform best
    • Which days perform best
  • Example results shown from the journal:
    • EUR/USD win rate: 71% (best-performing pair, per the video)
    • AUD/USD: equity + win rate shown, but exact win rate not provided
    • USD/CAD win rate: 59%
    • ES win rate: 67%
  • Day-of-week observation:
    • Worst: Mondays
    • Best: Fridays
  • Recommendation: focus only on best-performing symbols/days.

Common Mistakes Highlighted (Risk & Execution)

  1. Trading too many instruments
    • Stick to 1–2 (max 2) / 2–3 instruments and master them.
  2. Inconsistent risk per trade
    • Example: keep constant risk (e.g., 2% per trade).
  3. Trading around macro news
    • Avoid high-impact/red news using Forex Factory
    • Process:
      • Quit trades ~5 minutes before release
      • Avoid trading until volatility calms
      • Example “hard rule”: wait 10 minutes after news

Specific Trade-Level Example Mentioned

  • An untested POC level referenced: 1.1603
    • The excerpt implies a price level where a reaction is expected, but the instrument is not explicitly stated for that exact number.

Explicit Recommendations / Bottom-Line Rules (Video Recap)

  • Use TradingView Session Volume HD
  • Trade pullbacks to the daily POC
  • Enter only on the first touch/test
  • Use TP/SL = 10–20% of average daily volatility
    • Example: EUR/USD 80 pips → 8–16 pips
  • Improve with confluences: VWAP, order flow, fair value gaps (SMC)
  • Backtest + journal to fine-tune
  • Trade only 2–3 markets
  • Keep constant risk
  • Avoid macro news, especially high-impact events

Disclosures / Disclaimers

  • No explicit “not financial advice” disclaimer was included in the provided subtitles excerpt.

Presenters / Sources Mentioned

  • Presenter: Not explicitly named in the provided subtitles
    • References include “traderdale.com” and “visit my website”
  • Software / indicator: TradingView (indicator: Session Volume HD)
  • News source: Forex Factory
  • Methodology referenced: Smart Money Concepts (SMC) (for Fair Value Gap)

Original video