📊Volume Profile: Components & Concept

19 thg 5, 2023

📍What 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.

📍Volume Profiles Uses:
🔷 Identify Key Support and Resistance Levels for Setups
🔷 Determine Logical Take Profits and Stop Losses
🔷 Calculate Initial R Multiplier
🔷 Identify Balanced vs Imbalanced Markets
🔷 Determine Strength of Trends

📍Volume Profile Components:
🔹Point of Control (POC): Price level where the most volume traded for the session. Commonly referred to as the POC.
🔹Value 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.
🔹Volume 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.
🔹Volume 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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