ðWhat is a volume profile?
A Volume Profile is an advanced charting indicator that displays total volume traded at every price level over a user specified time period.
ðVolume Profiles Uses:
ð· Identify Key Support and Resistance Levels for Setups
ð· Determine Logical Take Profits and Stop Losses
ð· Calculate Initial R Multiplier
ð· Identify Balanced vs Imbalanced Markets
ð· Determine Strength of Trends
ðVolume Profile Components:
ðđPoint of Control (POC): Price level where the most volume traded for the session. Commonly referred to as the POC.
ðđValue Area (VA): Price range in which a user specified percentage volume was traded for a session. Volume profile traditionalist use 70% as it close to 1 standard deviation from the mean. The Point of Control is used as the mean on a volume profile.
ðđVolume Area High(VAH): This represents the price level at which the highest volume of trades occurred during the analyzed period inside VA. It indicates a significant level of trading activity and is often considered a key resistance level.
ðđVolume Area Low(VAL): Conversely, the Volume Area Low represents the price level with the lowest volume of trades during the analyzed period inside VA. It signifies a level of low trading activity and is typically considered a support level.
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A Volume Profile is an advanced charting indicator that displays total volume traded at every price level over a user specified time period.
ðVolume Profiles Uses:
ð· Identify Key Support and Resistance Levels for Setups
ð· Determine Logical Take Profits and Stop Losses
ð· Calculate Initial R Multiplier
ð· Identify Balanced vs Imbalanced Markets
ð· Determine Strength of Trends
ðVolume Profile Components:
ðđPoint of Control (POC): Price level where the most volume traded for the session. Commonly referred to as the POC.
ðđValue Area (VA): Price range in which a user specified percentage volume was traded for a session. Volume profile traditionalist use 70% as it close to 1 standard deviation from the mean. The Point of Control is used as the mean on a volume profile.
ðđVolume Area High(VAH): This represents the price level at which the highest volume of trades occurred during the analyzed period inside VA. It indicates a significant level of trading activity and is often considered a key resistance level.
ðđVolume Area Low(VAL): Conversely, the Volume Area Low represents the price level with the lowest volume of trades during the analyzed period inside VA. It signifies a level of low trading activity and is typically considered a support level.
ðĪ @QuantVue
ð Daily Ideas about market update, psychology & indicators
âĪïļ If you appreciate our work, please like, comment and follow âĪïļ
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