Painting the Tape – Episode 11: Volume Profile PT:1

Hosts: Leo, AJ, Stowe

[00:00] Introduction & Banter
The hosts catch up on life—babies, moving, trading challenges, and self-improvement. They set a relaxed, humorous tone before diving into the topic of the Volume Profile.

[07:15] Trading Challenges & Process
Stowe shares insights from a recent trading challenge, discussing the importance of daily profit/loss limits, self-awareness, and adapting strategies to fit personal needs. The group reflects on the value of stepping away and finding what works for each trader.

[14:30] What is the Volume Profile?
Leo introduces the Volume Profile as a visual representation of contracts traded at each price. The group explains the difference between volume by price (profile) and volume by time (histogram), and why the profile is especially powerful for futures traders.

[22:00] Key Concepts: HVN, LVN, Value Area, and POC
The hosts break down the basics: high volume nodes (HVN), low volume nodes (LVN), value area, and point of control (POC). They discuss how these concepts help traders understand where the market is most active and where price is considered “fair.”

[32:00] Auction Market Theory & Market Structure
Stowe explains how the Volume Profile helps visualize the market as an auction, with price gravitating toward areas of high participation. The group discusses how to use these concepts to spot balance, imbalance, and potential trade locations.

[40:00] Leg-to-Leg Profiles & Absorption
AJ and Leo discuss analyzing volume and delta on intraday “legs” (rotations), emphasizing the importance of recent data and absorption. They explain how to spot areas where buyers or sellers are absorbing pressure, and how this informs trade decisions.

[53:00] Strategy & Real-World Examples
The hosts share examples from recent trading sessions, illustrating how they use the Volume Profile and Delta to identify opportunities, manage risk, and interpret market context. They debate the usefulness of various tools and approaches.

[1:00:00] LVNs, HVNs, and Context
The group dives deeper into using LVNs and HVNs for trade entries and exits, stressing the importance of context and not relying on any single signal. They share stories about learning to adapt strategies for different markets (NQ vs. ES) and the pitfalls of rigidly following indicators.

[1:15:00] Wrap-Up & Final Thoughts
The hosts wind down with jokes about trading courses, the cost of running a podcast, and the value of sharing knowledge for free. They encourage listeners to leave a review, keep learning, and enjoy the process.