Trading Crude - How to Trade Absorption Off A Step in the Volume Profile

In this video, from Axia Futures, Richard leads this price ladder trading session with a replay of how a volume ledge got created which effectively acted as a key pivot level that could not have been identified by anyone merely trading with a chart.

Using the Jigsaw Price Ladder, we see how as soon as the market got through the $56.73 level in WTI Oil, where attempt to sell took place, the market quickly accelerated higher and used the level as support. Then again selling absorption showed up a bit higher up at $56.85.

Richard notes the key to reading the price action in a range like this is to notice the change in relative buying and selling. Only once the market exited out of this range between 73 and 85 were you able to see which side is likely to succeed in carrying to market. Most importantly, observing these levels of interaction via the price ladder assist traders in being able to get an earlier clue on important pivot points within a market.

For more on this type of trading, visit the Jigsaw Institutional Page

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