99% of traders look at volume...

yet the majority of traders are using it WRONG

Here's how I used volume to make 6 figures trading last year:🧵

We all know the classic volume tips that we were told in the penny stock era...

Wait for a run up, then look for a pullback on LOW volume to get an entry

This isn't how you should be looking at volume...

First, let's start with what do I mean by volume

Volume Profile?

# of shares?

No.

I look at the volume BARS

The key is to look at relative volume compared to the previous candle bars

Low volume bars don't matter

The secret is in the high volume bars

Why?

Because high volume bars indicate REVERSALS (in most cases)

Take a look at $SPY

Notice the volume on each bottom?

I've been trading full-time for the past 3 years using my supply/demand strategy

Here's the ONE reason why you're supply/demand strategy isn't working: 🧵

Supply/Demand zones don't work by themselves.

You can't just buy every demand zone and sell every supply zone, otherwise the price would just wedge the whole time

Eventually one side has to break....

The key is following trend

Meaning you should only be buying demand zones that TAKE OUT the corresponding supply zone

Why?

It shows that demand exceeds supply

Buyers are stronger than sellers

Let's take a look at an example👇

Here's $RIVN

You can see that price failed to take out the corresponding high (supply zone)

This shows that sellers are still in control so you DON'T want to be buying at this demand zone

Here's $CRM

Demand is able to take out the previous supply zone (swing high)

This shows buyers are in control, so you want to be buying demand zones

From losing $15k over 2 years, to now making $15k/month...

Here's 10 tips I'd tell my younger self:

1. Focus on the process

The money will come. Stop worrying about how much money you made today

Focus on how much work you're putting in

How many hours are you studying charts?

Inputs > Outputs

2. Journal your trades!

I didn't start doing this until about a year in of trading.

It helped TREMENDOUSLY

You'll learn a lot about how you can improve and stop you from making the same mistakes

3. Listen to others

Don't be listening to the random on Twitter who just started out

But if someone with experience and a professional in their field gives you advice...

take it.

They know something you don't.

4. Stop Full Porting

Trading is not a "get rich quick" business.

It will take time.

Even with a $500 account, learn to use risk management and the money will come