Original subtitles

So in order to get more winning trades

overall we're going to want to utilize

context building and using overlapping

confluences to help build higher

probability trades. Now this is the part

that will trip up a lot of retail traders

is that we actually don't use any form of

candlestick or price action based

confirmations which is totally different

to what most retail traders expect. Thanks

to YouTube and social media trading most

expect that we would use some sort of

confirmation like this but our

confirmation for trades is different. It's

based purely on volume analysis and

building stories around price and volume.

So the most important skill you need to

find higher probability trades is

developing your skills in building stories

around price using volume analysis. Now a

few things to note any single level alone

for example today's developing value area

high yesterday's value area high

yesterday's point of control over all

these levels can and often will produce a

reaction on their own. However what we're

wanting to do is find multiple confluences

and stack these different independent

reference points that all align in the

same zone because those multiple

overlapping references and confluences

mean there's more market interest, more

logical reason behind our trade setup and

therefore a higher probability of a

favorable reaction. So our confirmation is

simply looking for these trades that have

multiple confluences aligned and then

capitalizing on those price points. So

there are many different confluences we

can use to build context and find these

higher probability trades. But the main

examples of what you want to be looking

for for adding confluences and finding

that confirmation are things like

overlapping volume profile levels. That

could be your VAH, POC, VAL of any of the

profiles. Overnight, previous day,

developing or weekly. If any of these

levels overlap that is a confluence. The

next one is value levels which are

reinforced by high volume nodes. So when

the market is actively trading and

developing volume around a particular

value level and we get our breakaway from

that value level, that level then becomes

reinforced by the high volume node

confirming acceptance at that level which

we'll get into in more depth shortly. And

the last one is reading the developing

auction in relation to previous profiles

to get an idea of market sentiment. So the

more confluences you have together, the

better. And we have a bit of a grading

system here as to how we approach

different trades and how we rank our trade

setups. So our trade setups are ranked

based on how many confluences we have in

our favor. An A-rated trade would be any

trade setup that has three or more

confluences in which case we could go in

with 100% of our predetermined position

size and risk. A B-rated trade is anything

that has two confluences in which case

we'd go in with half of our typical

position size. And then a C-rated trade

would be a single confluence. These are

not the best trades. You're going to be

avoiding C-rated trades in general. But

worst case, if you are taking C-rated

trades, a C-rated trade would be something

like trading the value area high of the

previous day with no other confluence,

just shorting the value high for no

reason. That would be a C-rated trade, a

single confluence, in which case you'd

want to use 25% of your position size or

less. And these would be quick trades,

quick scalps, in and out only. As we

mentioned, value levels alone are most

likely going to give you some sort of

reaction. But without extra confluences,

it is little more than a slightly weighted

coin flip. Therefore, you want to be

taking less of these trades, or if you do

take these trades, size way down. The idea

is to take as many A-rated trades as

possible, which requires building your

patience. Now, you will find an A-rated

trade quite frequently throughout the day.

And you'll find that as you trade volume

profile, you'll see that you don't really

have no trade days. There's almost always

some sort of setup during your trade

session all throughout the day. So we're

not sitting around waiting for the perfect

trade setup all the time. You'll find

these A and B-rated trades happening quite

frequently throughout the day. But the

main thing is to develop patience and wait

for at least two confluences, preferably

three more to align before you take a

trade. So let's cover these confluences

one by one now, so you can see what to

look for to add to those basic trade

setups that we discussed initially. See

how you can add extra confluence to those

setups to be able to feel confident in

taking trades that are more likely to have

a positive outcome. So we'll start firstly

with overlapping confluences. So go ahead

and complete this lesson and move on to

the next one.