Session Volume allows you to see the pivotal VAL, VAH, and POC for each trading session.
NOTE the length of these periods differs between legacy assets such as stocks and the cryptocurrency markets.
Legacy markets: 6.5 hours - 9:30 AM to 4 PM (ET/New York)
Cryptocurrency markets: - 24 hours 7 days a week.
The VAL, VAH, and POC produced from Session Volume can then be used as support/resistance.
Time Stamps
2:47 – BTC SENTIMENT, STATS AND TA
- Backwardation: spot price trading higher than futures
- Contango: futures price is trading higher than spot
- When you see a pattern that is repeating you want to make use of this knowledge and not just ignore it.
- Also remember: when the price is going sideways and OBV is breaking up = bullish
33:51 – SESSION VOLUME
- It is a good way of seeing the pivotal VAL, VAH and POCs from each trading session (24H periods for crypto)
- Each of these levels is used as support/resistance and are very important levels to be aware of for day traders. Daniel checks all these levels for the past day (pdVAL, pdVAH, pdPOC) and writes them down on paper before he starts trading.
- The main focus for swing traders is ‘Naked POCs’ – this is where a POC from the previous session has not been tapped. It generally gives a bounce when approached for the first time but as always look for confluence.
- Naked POCs are a place on the chart where there was the most transacted volume so when price breaks away from that price 95% of traders that got the direction wrong would love to get out of that trade at break-even price when price revisits it. That is why the first touch of POC is such a strong support/resistance – there are a lot of people getting out break-even plus some traders like Daniel are also setting bids on Naked POC to ‘double the strength’. Daniel only pre-sets bids there if there is AT LEAST 1 confluence on that level (e.g. CC or weekly/monthly). It happens at least once a week that they line up.
- On TradingView it is called ‘Session volume’
- Daniel prefers to see the reaction first and get in straight after (90% of his trades). Though sometimes he does pre-set orders waiting at the level and one of his favourite setups to do this is on Naked POCs with confluence at that level with another tool.
44:18 – EXAMPLES
- Session volume does not change if you set your TF on 1 day or 15 minutes – on small TF you just get a more in-depth view.
- If price gets acceptance into VAH (price going down) price is likely to go to at least POC if not VAL. If price bounces off of VAH in an uptrend it is bullish.
- If price auctions above pdVAH, forms a bit of a distribution pattern and breaks back down into pdVAH, there are 80% probabilities of auction back down to pdVAL. It means the price was not accepted above that high. The same goes for if the price is in a range, it drops down but then gets acceptance into pdVAL there are 80% probabilities of auction back to pdVAH.
- Context!
1:06:12 – Q&A
1:20:29 – BTC TRADING CHALLENGE
1:25:24 – Q&A
- The theory is not TF related, it is all about volume