All language subtitles for cammycapital-Volume Profile Trading Course-16-Reinforced Levels-eng

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Original subtitles

The next confluence we refer to as

reinforced levels. A reinforced level is

when a high volume node develops directly

on or adjacent to a key volume profile

level. And what this is doing is

indicating market acceptance of that key

price level. Now when price breaks away

from this reinforced level, we can more

confidently use that level as support or

resistance on the retest depending on

which side price breaks. So if we look at

the example on the right here, we have the

white dotted line which is the previous

day's value area high. And what we have

here, this profile is our developing

session profile. And you can see that we

have a high volume node here developed

right across the top of the previous day's

value area high. So it's created a bit of

volume here earlier in the session. It's

broken down, come away from that level.

Price is now trading below the previous

day's value area high. When price comes

back up to test that previous day's value

area high, we can now more confidently

trade and take a short from this level

being as we're coming from the underside.

Because the previous day's value level has

been reinforced with a high volume node.

So we see when price came up here the

first time, tapped the previous day's

value area high. Tapping also the high

volume node highlighted in green. We get a

first short play there. Then it comes up

again, trades into the previous day value

area high and into that high volume node.

And then if you have a sharp eye, you'll

notice a third confluence here as well,

which is the session value area high. And

then it comes off and trades down to the

downside again. So this is another key

confluence you can look for is watch for

the high volume nodes in the developing

profile. Watch for them to develop around

any value level from past data and use

that as an extra confluence to turn a C

trade into a B trade. And then try and

find that third confluence to turn it into

an A trade. Because remember, recent high

volume nodes when traded back towards

often cause price to slow down, bounce or

reverse. And when lining that up with a

logical value level gives you good reason

to trust the trade when these develop. So

that is how you find reinforced levels.

Now let's move on to the final confluence,

which is all about building context around

the auction.

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