This article is a review of FuturesTrader71’s paid webinar #1, Market Profile Basics.
In this video, the foundation is set by describing auction theory and how it relates and is shown in the market. A volume profile is described and the parts of the profile such as High Volume Nodes (HVNs), Low Volume Nodes (LVNs), Volume Point of Control (VPOC), and Value Area is defined. Related concepts like the Initial Balance, Time Price Opportunities, Opening Swing and Composite Profiles are also defined. Next, Opening Types are discussed: Open Drive, Open Test Drive, Open Rejection Reverse, Open Auction In-Range, and Open Auction Out-of-Range. After this, FT71 discusses how he breaks the profiling information into Overnight trading, Regular Trading Hours and the Composite Profile, and discusses at a high level how he uses that information to form hypotheses. He uses a top-down approach by starting with the composite profile and looking for areas of value and the movement the market is doing through those areas. Once these larger areas are discovered, he drills down to RTH sessions and considers the prior close, current open, Highs, Lows, the Opening Swing, and Initial Balance as possible areas to watch and see what the market does. Then once the RTH trading session is on its way, the intra-day volume profile become the dominating factor. Lastly, FT71 goes through his core trading principles which are all core, foundational trading principles (Risk management, journaling, research, etc).
At the end of this video, I was underwhelmed. Nothing really new was introduced that you can’t find elsewhere, and many topics were not covered in enough depth. Most of the concepts discussed are better covered in James Dalton’s “Mind Over Markets“. His core trading principle are pretty standard and most can be found in a good trading book that goes through core concepts (I think Dr. Van Tharp’s “Super Trader” book is a good example). His section on how he uses various volume profiles to create a hypothesis is very interesting and was where I was just starting to get into it, but it is quickly passed over.
In summary, this video is basically used to build the foundation for other videos. But for me, it just wasn’t worth it. There is really no new information and all of it is probably better gathered from other sources like books, which cost about the same but go through the topic in greater detail, or from free website sources. I just can’t recommend in investment for this video.
Next article, I’ll look at video #2 – Intermediate Market Profiling.