This guide is going to focus on volume profiles on the y-axis simply due to the fact it’s what most traders picture when they think of a volume profile and also what you’re probably the least familiar with. As an order flow trader, volume profiles are at the core foundation of all my trading strategies. By the end of this guide you will have a firm understanding of how to use volume profiles.

Understanding the Context

Excited? You should be, let’s get into it. Volume profile is an advanced charting indicator that displays trading activity over a specified time period at specified price levels. These indicato...

Key Insights

Volume Profile is an advanced charting study that displays trading activity over a specified time period at specified price levels. — Indicators and Strategies Volume profile trading is a form of technical analysis that reveals at which price levels most trading activity took place, helping traders visualise supply and demand with a horizontal volume-by-price histogram. Volume Profile maps where trading actually happened—plotting volume at each price to reveal the Point of Control and the 70% Value Area, the real zones of acceptance and rejection. Volume profile is an incredibly powerful tool that will help improve your edge as a trader. Here is a complete guide on how to use volume profile, including how to identify support, resistance, and trends through the profile.

Final Thoughts

What is a Volume Profile? Volume Profile is a technical analysis tool that scans historical price action and maps out how much volume was traded at each price level, forming a visual distribution on the chart.