This video showcases a beginner's guide to using the Volume Profile. 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.
Volume Profile Visual: 1:00
VP Term Definitions: 2:11
VP Strategy Rules: 4:21
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Disclaimer: The content covered in this video is NOT investment advice and I am not a financial advisor. The material covered within these videos is for educational purposes only. Always do your own research and only invest based on your own findings and personal judgment. Happy Trading!
I got two questions. First, how big is your row size?
Second, how to interpret it, if the value area is way higher than the current price (as seen in the current ripple/usdt 4 hr chart: 11. may until 10. august). I know, there was a big sell-off and it felt all through the LVN's below the value area. According to your rules, price is likely to retrace to a value area low. But that seems unusual to me (new HVN's occured between the current price and the value area), does that mean, a new value area is forming at the current levels by consolidation?
Hi, what parameters do you use for your VPVR on Trading View to be able to have it display like that? Mine shows a lot fewer bars( whatever the standard is) so it doesn't seem to cover as much of the chart as yours. Thanks in advance. Cheers.
Which type of volume profile should I choose in Trading View ? , There are 3 types. So which is best ? One of them I think better is volume on screen , like it will show the profile of whatever data on our screen is,
But how much past data we have to take ? Means how much zoom in or out we should make, coz more past data we zoom out we get different profiles
hey sir first of all i wanna thank you for all your videos ,it helps mme a lot ,i have a question ,what thas it mean when we have a strong bullish candle with a small volum ?, and when we say a strong volume it mean a volum who is almost tutchinng the MA and far right ? THANK YOU
Strong volume = volume above its 20 period moving average. Remember that 'strong volume' can also be a sign of a reversal, so always check the trend momentum (weak momentum + strong volume = reversal, strong momentum + strong volume = continuation).
Hello. I have watched your Volume profile video, but since I'm Asian, my English listening section is not really good, so many of my videos have not been heard. So you can write trading strategies according to Volume Profile strategy so that I can translate to find out more. Thank you very much!
How many candles should be on the chart? What sort of patterns are OK? Is it fine if the candles start low go high, go back down again? Old value areas should not affect what is calculated to be the current value area. The value area can be affected by all of these things.
After watching this video, I understand the mechanics of volume profile indicator but I do not know how to use it effectively.
In order to understand how to use volume profile effectively, I need to understand how many candles and what sorts of shapes can appear on the chart.
Dude you're genius. Thank you very much for your teaching. I had been looking for videos to understand VP from last 2 years but did not get it very well until I came across your videos. Thank you very much once again.
What I like about your videos, is that you don't just explain the technical aspect. You reinforce the technical theory, backing it with market pyschology. Very few people do that though it's very important. Great job!
sorry POC foresees future direction , correct? then as you mention 5 m and 1 H, ,however what TIME FRAME back in a chart to put 1 day, 2 weeks, 1 month ? , i mean besides the 5m or 1 H? here where i am confused , Thanks again.
Thanks for the great explanation! Also have a question: "...all those positions begin to exit, then it will cause the price likely reverse..." - Can you elaborate this? I would think if long positions exit then the price won't reverse and go up, but will go down because the sell pressure. Why would the opposite happen?
Due to the dynamics of price being oversold. If too many traders sell at a certain level - that level will likely turn into a bullish reversal. Why? Well imagine theoretically a situation where every trader sold an asset, the price would not be able to move any lower as there would be no more sellers able to push the price down.
Imagine a situation where every trader bought an asset - at that point, the price would not be able to move any higher as there are no more buyers to push the price up.
So when I say that those positions begin to exit, price likely reverses = that is because of all of the traders who wanted to sell = had already sold = good buying opportunity.
With setup in trading view, where do we set the 2 points after choosing fixed range? Do we need to change values to the ones in your video? I only saw 2 options to change values for trading view, but I see 3 in your video.
You need Tradingview Pro. If you have Tradingview Pro, hit indicators and then hit volume profile. Then hit fixed range if you want to draw the endpoints or visible range if you want the volume profile to follow your chart.
Sorry I posted another comment into another video and will try to make this one better with some questions, if you have time:
- Volume profile is only useful for day trading? Or can I use it to look at the chart with 15 min or 4h candles so try to predict trends? I also notice it will vary a lot depending on the time interval selected so I was wondering what would be ideal time interval for day trading but also for more of a long-ish term investment
- On the rules of volume profile you said that if price is consolidating it will bounce between HVN’s and LVN’s, but I’m not entirely sure if these HVN’s will be likely inside the VA or it could go outside of it as well
I would recommend that you use the fixed range volume profile instead of the visible range volume profile. Then you could go on the 1H or 4H view and plot the fixed range from the start of a trend to the end of a trend or the start of consolidation to the end of consolidation. I always like to plot the fixed range volume profile on a higher timeframe and then trade on a smaller timeframe using that information.
Thanks Bennett. What confuses me is that for example if I look at XLM/BTC at 1 day view... VA is on top meaning it's on a downtrend, however if I put a 5 day view (all on TradingView website) VA is on the middle meaning consolidation. Taking a look at some other coins it happens the same or I just get downtren on 1d view and uptrend in 4d view.
Aside from day trading, which is clear that we should use the 1d view, for long-ish positions what's supposed to be the correct time frame? Should we also try to include for example huge spikes up or down in the view to have a better picture on where the value area is?
Volume Profile can be used on any timeframe - and can be used for shorter term and longer term trading. Typically during consolidation: you will see price bounce from LVN to HVN and then back to LVN's within the value area.
hi there I really enjoy your videos. Lots of information, but I would like to ask you something to do a video on. Can you figure out a few EMA cross over strategies, which works lets say 80% of the time without any volume or any other parameter simply based on ema cross over, lets say 30,10 buy after the 4th candle and sell when ema crosses 2 candles after. which works on 5,15,30 and 1 hour 80% of the time? if you can come up with such a strategy im more than willing to pay it forward. I have been trying to figure out a strategy but you are more knowledgeable than me when it comes to trading. if we can find a strategy simply based on ema im going to pay it forward promise. please leave me ur email or contact info. thanks
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