In a packed TED auditorium buzzing with hedge-fund analysts and independent traders, Joseph Plazo delivered a message that reframed how markets are truly understood:
Price is not where the story begins — volume is.
In his talk, Plazo explained that volume profile and institutional positioning reveal the hidden architecture behind market movement, especially in today’s era of artificial intelligence trading. For those involved in forex trading, the implications were immediate and profound.
“Price shows you where the market went,” Plazo explained. “Volume shows you where the market agreed.”
The Hidden Map Behind Price
According to Joseph Plazo, institutional traders do not interpret charts the way retail traders do. While most focus on indicators and patterns, banks focus on where transactions actually occurred in size.
Volume profile reveals:
High-volume nodes where institutions built positions
Low-volume areas where price moves quickly
Fair value zones where markets accept price
Rejection zones where price was aggressively defended
Plazo emphasized that institutions accumulate positions slowly, often disguising intent over days or weeks. Volume profile exposes this behavior by showing where the most business was conducted.
“You just have to know where to look.”
This philosophy forms a core pillar of research at Plazo Sullivan Roche Capital, where quantitative models combine volume analytics with behavioral finance.
The Difference Between Entry and Inventory
Plazo then tackled one of the most misunderstood concepts in forex trading: institutional positioning.
Banks do not “enter trades.” They build inventory.
Using volume profile, institutions identify price zones where liquidity is sufficient to absorb large orders without causing excessive slippage. These zones become accumulation or distribution areas — often invisible to traders focused only on candles.
Plazo explained that when price revisits these zones, institutions defend them aggressively.
“Institutions defend inventory.”
Understanding this distinction transforms how traders approach entries, exits, and risk.
From Human Insight to Machine Precision
In modern markets, artificial intelligence trading has amplified the power of volume profile.
Plazo explained that AI systems excel at:
Processing millions of volume transactions instantly
Identifying subtle shifts in acceptance and rejection
Detecting institutional accumulation before price expansion
Removing emotional bias from analysis
At Plazo Sullivan Roche Capital, AI models continuously analyze volume distribution across timeframes, allowing traders to align with institutional positioning read more rather than react to surface-level price movement.
“AI doesn’t predict markets,” Plazo clarified.
Turning Theory Into Execution
Plazo showed how traders can apply volume profile practically in forex trading by:
Trading reactions at high-volume nodes
Using low-volume areas for momentum continuation
Avoiding entries in volume voids without confirmation
Aligning direction with institutional accumulation
When volume profile aligns with broader market narrative, probability increases dramatically.
“Volume profile turns guessing into positioning.”
The Plazo Institutional Framework
Plazo closed his TED Talk with a simple framework:
Use volume profile to find institutional zones
Track institutional positioning, not retail patterns
Leverage AI to enhance clarity
As the audience rose in applause, one truth became unmistakable:
Markets are not random — they are organized around volume. And Joseph Plazo just taught traders how to read the map.