The ONLY Volume Profile Trading Video You'll EVER Need!

this is the volume profile and  it can give you precise sniper   entries for your trades most people  don't know about this one simple tool   but after watching this video you'll  be able to add this to your trading Arsenal the volume profile is a versatile tool  used by Traders to analyze the volume traded   at each price level within a specified time frame  unlike traditional volume IND indicators that show   volume over a fixed period volume profile displays  volume distribution vertically on the price chart   now why is this important high volume nodes at  a level indicate that there was high interest   in buying or selling at that area so when price  revisits this area we can expect to see a reaction   again which presents us with an opportunity to  enter and exit trades the volume profile while   highlight a range where the majority of  trading activity took place this range is   called the value area it consists of three key  levels the value area high the value area low   and the point of control this is a range of  price levels in which a specified percentage   of all volume was traded during that time period  typically this percentage is set to 70 the point   of control repres presents the price level where  the volume was most traded or where Traders were   most active now let's go over some various volume  profile tools that can help us all of them can be   found on tradingview.com sign up using the link  in the video description below a great place to   start is the anchored volume profile you can find  this right here in the toolbar on the left just   above the brush icon with volume profile tools  you typically want to use them on r ranges so   identify the first point where the range starts  and click on it now the anchored volume profile   will be displayed on the right it covers the start  of the range to the current market price and into   future price action all of the bars here show  you volume represented at each price level the   larger the bar the more volume was traded at  that level these high volume bars are called   high volume nodes and typically are the are where  we'll be looking for trading opportunities you'll   also notice low volume bars these are low volume  nodes these are price levels within the chart that   have a low volume of Trades it represents a level  of less interest where there is a lack of buying   or selling activity this red line is the point of  control which is the price level with the highest   traded volume it represents the most significant  price level and highest interest to Traders   this is where there is the most buying and selling  activity if we double click on the anchored volume   profile we can open up the settings here we  can customize colors adjust our settings and   parameters for now we'll turn on the value area  high and the value area low this will give us   two additional lines highlighted on our chart and  these are the levels that typically you want to   pay attention to just like every other indicator  you want to combine this with other Confluence   like support and resistance levels or Fibonacci  retracements so whenever one of these volume   profile levels are near a traditional horizontal  support or resistance then that area becomes even   stronger and you can have a higher confidence of a  trade laying out from that level now let's go over   fixed range volume profile you can find this in  the same section as the anchored volume profile   but there's a big difference between the two the  anchored volume profile displays volumes at spe   specific ranges that is selected which includes  current market price however with the fixed range   volume profile we can choose to not include the  current market price action opting to use it only   on historical price data this can be very useful  since old points of control can still provide   strong levels on our current chart we'll be able  to mark out multiple areas within the fixed volume   range profile this way as we can see here price  has reacted to every old point of control once   it broke out of the range and came back now they  don't mean a complete reversal of trend but it   does provide you with a short-term day trading  opportunity now let's go over the session volume   profile indicator this feature does require a paid  subscription on trading view if you don't have a   premium membership don't worry because the free  fixed range volume profile tool that we covered   earlier can basically do the same thing as this  paid one the difference is that the session volume   profile indicator automatically marks out all  of the volume profiles of the previous trading   sessions while with the free one you'll have to  do this manually that's it so don't upgrade just   for this here we have the session volume profile  each range represents one trading day this tool is   best used for day Traders looking for quick trades  in and out look closely you can see how the points   of control of past trading sessions have acted as  support and resistance in the following trading   days this is generally how you should be looking  to use this tool via the volume profile of the   previous days you might wonder why don't we use  the current day session volume since the trading   day has not yet ended and is constantly changing  in real time this can cause fake signals or flaws   when looking at volume so it's best to exclude  the current day let's go over an example in this   one we'll be using the fixed range volume profile  in front of us is a market that previously was in   an uptrend but then it began breaking down making  lower highs and lower lows signaling a downtrend   you may notice how it was ranging for a while  before it broke down we'll mark this range out   with our volume profile in order to identify  the point of control so first select the area   where the range started then select the end point  which will be the last candle before it broke the   range here we can see the volume profile of this  range the area that we'll have to keep an eye on   is the point of control remember to look for  Confluence always never take one signal or   tool for granted for this example we'll use  the Fibonacci retracement first select the   swing high of the range then select the lowest  low that's most relevant to the current market   price as we can see the point of control is  around the same area as the 618 or the golden   FIB retracement level so once price comes back  to this we'll want to enter after we get a good   reaction here we can see that instead of pushing  up higher price respected the level and created   a bearish engulfing Candlestick this will be  our entry trigger we'll set our stop losses   above the high and we'll look toar Target the  levels lower the volume profile tool may look   complex at first but with enough time it can  become your Edge in trading hopefully this   video helped you understand it a little bit if  you know another Trader that might benefit from   watching please share it with them thanks for  watching make sure to smash that like button   and subscribe and leave a comment on the video  on what topics you'd like to see us cover next