Volume Profiles on TradingView
If you are new to TradingView
Or a new trader, there is a pretty useful feature called volume profiles - available with paid membership of Tradingview. This is a quick introduction to and not a full lesson on how to use, strategies or techniques (will post one if there is interest for that).
TradingView's own definition of Volume profile
Volume Profile is an advanced charting study that displays trading activity over a specified time period at specified price levels. The study (accounting for user defined parameters such as number of rows and time period) plots a histogram on the chart meant to reveal dominant and/or significant price levels based on volume. Essentially, Volume Profile takes the total volume traded at a specific price level during the specified time period and divides the total volume into either buy volume or sell volume and then makes that information easily visible to the trader.
Source - tradingview.com/support/solutions/43000502040-volume-profile/
Types of volume profiles available
First there is session volume
As it says on the tin - session volume calculates the volume of transactions during the session, boxed off individually on a session by session basis.
Inside the session volume;-
Second type of volume profile is "Visible range" - again not much of an explanation needed, however - this one is a little more tricky as a lot of novice traders spend a lot of time flipping between charts, time frames and so on. So you need to be careful as it will compute, whatever you have in view on the chart.
Here we can see the value area, just like the session - but for the visible range.
I have also highlighted the region outside of the value zone - grey area in orange boxes. (for this example) and of course the point of control.
By zooming out to another swing high you can see how this changed the profile.
This is due to the fact we are now viewing on the chart a different range - A bigger swing with more info inside the calculation.
The third type of volume profile on TradingView is the fixed range;
In simple terms - this kind of works between the two; you can highlight what you want, but it is then anchored much like the session volume.
In this example above, I have shown the fixed range to match a visible range - larger left and the profile larger on the right. As well as a smaller fixed range showing the original smaller range form the visible range image 1.
Mix and match - or different use cases;
There are several different ways to apply volume, the use case, the logic & the strategy will depend on what one or what combo works best for you. As I mentioned above, I will do a lesson on strategies for volume if requested.
In this example below; I have shown a fixed range and a session profile.
And finally - just to reiterate, there are several techniques when trading volume, at a glance here you will see a cluset of "PoC's" consolidating at a high before the price moves on down over several sessions.
This is just one application.
As always, I hope this helps some newer traders out there get into volume profile, It can be a powerful tool when you know how to use it.
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
Or a new trader, there is a pretty useful feature called volume profiles - available with paid membership of Tradingview. This is a quick introduction to and not a full lesson on how to use, strategies or techniques (will post one if there is interest for that).
TradingView's own definition of Volume profile
Volume Profile is an advanced charting study that displays trading activity over a specified time period at specified price levels. The study (accounting for user defined parameters such as number of rows and time period) plots a histogram on the chart meant to reveal dominant and/or significant price levels based on volume. Essentially, Volume Profile takes the total volume traded at a specific price level during the specified time period and divides the total volume into either buy volume or sell volume and then makes that information easily visible to the trader.
Source - tradingview.com/support/solutions/43000502040-volume-profile/
Types of volume profiles available
First there is session volume
As it says on the tin - session volume calculates the volume of transactions during the session, boxed off individually on a session by session basis.
Inside the session volume;-
Second type of volume profile is "Visible range" - again not much of an explanation needed, however - this one is a little more tricky as a lot of novice traders spend a lot of time flipping between charts, time frames and so on. So you need to be careful as it will compute, whatever you have in view on the chart.
Here we can see the value area, just like the session - but for the visible range.
I have also highlighted the region outside of the value zone - grey area in orange boxes. (for this example) and of course the point of control.
By zooming out to another swing high you can see how this changed the profile.
This is due to the fact we are now viewing on the chart a different range - A bigger swing with more info inside the calculation.
The third type of volume profile on TradingView is the fixed range;
In simple terms - this kind of works between the two; you can highlight what you want, but it is then anchored much like the session volume.
In this example above, I have shown the fixed range to match a visible range - larger left and the profile larger on the right. As well as a smaller fixed range showing the original smaller range form the visible range image 1.
Mix and match - or different use cases;
There are several different ways to apply volume, the use case, the logic & the strategy will depend on what one or what combo works best for you. As I mentioned above, I will do a lesson on strategies for volume if requested.
In this example below; I have shown a fixed range and a session profile.
And finally - just to reiterate, there are several techniques when trading volume, at a glance here you will see a cluset of "PoC's" consolidating at a high before the price moves on down over several sessions.
This is just one application.
As always, I hope this helps some newer traders out there get into volume profile, It can be a powerful tool when you know how to use it.
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.