Trading with the Volume Profile

Apr 1, 2018

The Volume Profile is a fantastic tool to analyze price spots of high and low volume where you could potentially put your entry/exit orders.
You need a paid account to use Volume Profile ^^!

VP Term Definitions:

• High volume node (HVN). Point in volume profile where there is significantly higher volume than average.
  
  
• Low volume node (LVN). Point in volume profile where there is significantly lower volume than average.
  
  
• Value Area (VA): Where 70% of the volume is located in the volume profile. Determined from surrounding nodes of POC.
  
  [*Point of control (POC). Highest volume node on the volume profile. Useful for using as support/resistance and an important retest point.
  

VP Strategy Rules:

- If price is consolidating:
- Value area will be located in the middle of the Volume Profile
- Price will bounce between HVN's and LVN's
- If price is trending upward:
- Value area will be located on the bottom of the Volume Profile
- Price will likely retrace to Value Area High
- If price is trending downward:
- Value area will be located on the top of the Volume Profile
- Price will likely retrace to the Value Area Low