/10/8 · The volume profile indicator takes the total volume of an asset traded at a certain price level during a specific period and divides it by the total buy or sell volume. The information obtained by this indicator is easily visible on your charts and makes it Estimated Reading Time: 4 mins /12/24 · Along with a Market Profile, a Volume Profile indicator may also hold good in depicting the shares’ fair value. The Market Profile chart also demonstrates the volatility of a stock over time, which not only represents how many units have moved but also measures the price-to-volume ratios at any given point of time to show how many stocks or futures have been traded at that particular point /11/11 · Volume profile shows traders where and how much volume has traded so far in the trading session. Because it is dynamic and changes every time a new trade
How to Use Market Profile in Forex
If you are an intra-day trader, you can benefit from this Volume Profile trading strategy. Watch our latest video and learn how to trade with Volume Profile. Hello and welcome to this video from Diary of a Trader.
And, sometimes, you can find this for free on some software, but, at least in TradingView, this is a paid software or a paid version of the Volume Profile. So, the open of Cryptocurrencies on TradingView, as that closes and opens at p. Central Standard Time. And so, this is the Volume Profile. But I like to get rid of the histogram a little bit, and then create larger value areas, rows rather, and then I like to decrease the value area just a little bit.
And then, what we see here is the Volume Profile for each session. And if how to use volume profile in forex can see that, essentially what we have is, we have a horizontal representation of volume versus a vertical. So where vertical volume tells us what has happened and how much has been traded during a certain set of time, this is telling us how much how to use volume profile in forex something has traded at a particular price.
And if we were to even zoom in a bit here, and we were to apply the values, very hard to see right now, but we can see that the, for instance, right here, this says that we had 38 at this price level of about in Bitcoin, there were 38 Bitcoin bought versus 56 sold. And so, what this does, the Volume Profile, it tells us where most of the activity happens and this red line tells us where our point of control, they call this the VPOC or POC.
The point of control is where the most of the volume at a price has been traded. So, price has spent most of the time, trading at this value area. And what the point of control tells us, is that if prices are trading below the point of control, we are in a bearish and a weak condition, and if we are trading above, we are in a bullish and a strong condition.
So as the price was trading here, fell down, came back up to visit it, this formed a resistance area and it broke down away. That became a lot of selling pressure. Additionally, when we came down to the current price range, we are trading with a point of control down here,we are trading below that, and we have not reached back up to it, so we are considered to be in a weak and bearish cycle here.
But we can look back and see over time, a thing to notice on your charts, is looking at how the point of controls are forming. Are they ascending? Are they descending? And is the gap between them expanding? That can tell us a lot. What we really like to see and identify, are these high volume and low volume nodes. And so, the behavior of these zones is that when price approaches a low volume area, a price area that has not had a lot of volume, it moves through it how to use volume profile in forex fast.
And you may not be able to see this so much on this how to use volume profile in forex of chart volume, but we could look at a different way. So this is great for Intra-day trading and looking at how the price action has been over the last few days to trade, but sometimes we need a broader view so we can do a fixed range.
So, on May 1st, and that will go all the way to where we are now. We see that the point of control is down here, is at the value area, and that we are trading below that line. The point of control, while it acts as kind of a natural support and resistance zone, it also acts as a natural point to return to. So, think of price being attached to the point of control like a rubber band.
The further it pulls away, the more it wants to snap back up to it. And, we have a high degree of probability that when price comes from a higher low, how to use volume profile in forex, and it retraces all the way to the point of control, and then goes above it or below it, whatever the direction it is, we have a high chance of retracing the entire move above here.
So, in this scenario, if we were to trade all the way back above to this point of control on this chart here, we have a high probability of actually trading higher and above this. The point of control is also very, very useful to use with natural areas of support and resistance, or zones of control based off of pivots, if you remember watching a video we did recently together over pivots.
We do pivots point standard, if we take a look here, this pivot was athow to use volume profile in forex, which is right within the value range of our point of control. So, that is telling us that we have a very strong area of support and resistance, so if price were to return to this area, it would have a very difficult time getting there.
And what do we see here? We see that the point of control, in April, was down here, where we spent the majority of the time trading down at the value area. You see where we have this lot of volume here acting as a support zone as we moved up? It was easier to move up because there was not a lot of volume traded in here. And then, we start to form another kind of base we saw, a High Volume Node how to use volume profile in forex, and that was very easy to trade through it.
And so, the past Volume Profiles can tell us a lot. And if we really want to get a broad view, this is kind of a more a dynamic style of view. We can look at it through the visible range, which will just tell us everything on the chart that is currently visible, it will form that Volume Profile. Sometimes this is a little easier to see the kind of a larger picture view. And if we want to go just from the all-time high here, we just trade our screen over until we are about right there.
And so, this is the Volume Profile of the all-time high set on December 15th to now. So, that is the point of control on this large swing, from this swing high to where we currently are. If we ever saw price trading back up to or that zone, if we look above us, all of this price activity, very, how to use volume profile in forex, very, very open. Not a lot there, how to use volume profile in forex. So, this is a pretty interesting way to look at it, how to use volume profile in forex.
So, it is going to be much easier for price to move lower than it is to move higher. That was just a little intro, and look at Volume Profile and how it can be used in your trading.
How to use volume profile in forex hope you found this video very informative and useful and look forward to talking with you in our next videos.
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How to Trade with VOLUME PROFILE in Forex (78% winning strategy)
, time: 6:39How To Trade With Volume Profile | Futures
/10/8 · The volume profile indicator takes the total volume of an asset traded at a certain price level during a specific period and divides it by the total buy or sell volume. The information obtained by this indicator is easily visible on your charts and makes it Estimated Reading Time: 4 mins /12/24 · Along with a Market Profile, a Volume Profile indicator may also hold good in depicting the shares’ fair value. The Market Profile chart also demonstrates the volatility of a stock over time, which not only represents how many units have moved but also measures the price-to-volume ratios at any given point of time to show how many stocks or futures have been traded at that particular point /11/11 · Volume profile shows traders where and how much volume has traded so far in the trading session. Because it is dynamic and changes every time a new trade
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