About this video

• Video Title: Build a TRADING CAREER with 3 Indicators
• Channel: Jumpstart Trading
• Speakers: Not specified in the transcript
• Duration: 00:10:46

Overview

This video explains three key trading indicators—Cumulative Volume Delta (CVD), Volume, and Volume Profiles—that the speaker uses to achieve trading success. The speaker details how each indicator works, how to interpret them, and provides examples of their application in spotting reversals, confirming breakouts, and predicting support/resistance levels for high-probability trades.

Key takeaways

• Cumulative Volume Delta (CVD): This indicator, derived from the difference between volume traded at the offer price and volume traded at the bid price, helps identify aggressive buyers (Delta > 0) or sellers (Delta < 0). Divergence between price and CVD can signal potential reversals.
• Volume: The speaker emphasizes that increasing volume signifies more market participants entering, while decreasing volume indicates fewer. A trend requires rising volume for continuation; otherwise, it may stall or reverse. Volume is crucial for confirming breakouts and identifying capitulation (a dramatic surge in trading activity marking a potential trend end).
• Volume Profiles: These are presented as the most powerful indicator for building context. Key components include High Volume Nodes (HVNs) acting as support/resistance, Low Volume Nodes (LVNs) which price tends to move through quickly due to low liquidity, and the Point of Control (POC) where the most volume traded. HVNs can be used to find high-probability entry points for reversals within a trend.
• Integrated Strategy: The video demonstrates how to combine all three indicators to identify high-probability trading setups, such as a potential reversal signaled by Delta divergence, a nearby LVN, and light volume on a breakout.

The main components of a Volume Profile are:

• High Volume Nodes (HVNs): These are areas on the chart where a significant amount of volume has traded relative to the surrounding price action. HVNs tend to attract price, acting like gravity, and can serve as support or resistance levels.
• Low Volume Nodes (LVNs): These are areas with very little volume traded relative to their surroundings. The market often moves quickly through LVNs due to low liquidity.
• Point of Control (POC): This is the specific price level within a user-defined interval where the most volume traded.

High Volume Nodes tend to track price and hold it, acting as areas of support or resistance when price retraces into them. Low Volume Nodes have less "gravity," and price tends to move through them rapidly because of low liquidity.

Volume Profiles can be used to find high-probability support and resistance levels for entries in several scenarios:

• Reversals at High Volume Nodes (HVNs): When price retraces back into a previously identified HVN, it can act as a support or resistance level. You can look for reversals at these levels in the direction of the prevailing trend. For example, in an uptrend, if price pulls back to an HVN, rejection at that level can signal a continuation of the uptrend and a potential entry.
• Projecting HVNs Forward: Prior HVNs can be projected forward on a chart. These projected levels then act as potential high-probability support or resistance areas where traders can look for entries when price interacts with them.
• Identifying Breakouts through Low Volume Nodes (LVNs): While HVNs act as magnets, LVNs represent areas where price moves quickly due to low liquidity. If a price breaks through an LVN, it often continues its move rapidly. Therefore, LVNs can indicate areas where a breakout might accelerate, but the primary entry confirmation would often rely on other indicators or price action. The video combines this with volume confirmation, suggesting a breakout accompanied by increased volume is more reliable.