.:Static & Dynamic Value:. Small gimmick as a little push how nice you can set up here on TV to make the trading experience a "tick" more pleasant.
... In addition, while writing I spontaneously came up with something about, let's call it self-discovery from the own trading personality...
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The Volume Profile is a brilliant tool, not an indicator, and the whole professional trading industry looks at it. The same goes for the Vwap .
However, you don't HAVE to use it if you don't like it. But what I personally always prefer and recommend is to form your own opinion about something.
You should never rely on what others say but always form your own opinion. Because mostly the majority is wrong and even if the collective whole thinks something is good, it doesn't have to be good.
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So if you don't like the volume profile and can't get anything out of it, you should probably do it. try the VWAP before throwing in the towel. Or you are really crazy and try to combine both, which can be pretty awesome ...
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The volume-weighted average price has more to offer than simply being the "average price".
I like to use it as "Developing / Dynamic Value" in combination with the volume profile . The interesting thing about this thing is that it is not just an arbitrary indicator, but a visual representation of the actual transactions. What makes the VWAP so dynamic is the function of the bands based on the calculation of the conventional distribution curve / Gaussian distribution. This can give clues about volatility , rhythm and patterns. The bands of the VWAP are extremely sensitive, as many "digital eyes" of the Algos and of course a few of the remaining human eyes look at them. That alone is enough as an argument why you should look into the matter more closely - you don't have to.
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The chart is BtcUsdT and I have compared the volume profile with the weekly Vwap with the 3 standard deviations shown as bands in the charts above.
You can see that we get a nice value area from both tools that are almost identical.
I do not want to go into detail here on the use of the tools. Youtube and Google provide tons of material to learn and study. It should just create intention to dig into this beautiful topic.
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Many traders are looking for the holy grail, the perfect system, the secret technique that opens all doors.
A very well-known streaming provider is currently running a very ingenious series about a young lady who is a chess genius. In one of the later episodes, a young man says to the lady - who thought he would like to become a professional chess player - that the time together (the two trained together for a tournament) revealed to him that he doesn't like chess ( cf .) so much loves like the lady and that he has recognized that it is apparently not his destiny to become / be a professional chess player. What I want to express with detours is that the holy grail is devotion / love / obsession - call it what you want - the door opener. You should allow yourself a lot of time to find your true trading personality, be it instruments, tools, platform etc. and make these things your own. You only get really good if you really live what you do. One can think or know something. You should be able to feel the difference. As in trading, it's the obvious things and not the stuff that you have to look for with a magnifying glass.
Just because the tools / techniques / strategies exist and they work for others doesn't mean you have to force it on yourself. Concentrate on your interests, what you enjoy and what you just find awesome.
I hope that I have aroused a bit of interest in some topics and I wish everyone a Merry Christmas!
$BtcUsdT #BtcUSdT $BTC #BTC
