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Volume Profile

NZD/CHF: Volume Profile 📊 and Price Action Analysis 📋Hello guys, today’s day trading analysis will be on NZD/CHF. There is a very nicely looking volume-based setup called the “ Volume Accumulation Setup “ First, there was a rotation in which heavy volumes got accumulated (traded). You can see the volumes on the Flexible Volume Profile indicator below. Then, after the big guys (trading institutions) placed their big trades there, they pushed the price upwards into an uptrend. This uptrend tells us, that the volumes placed in the rotation (blue rectangle) were Longs. This is an information we can work with. Now we know where strong institutional buyers placed a lot of their Long positions. It is around 0.6430. This are is now very important place for them. When the price makes it back to this heavy volume area again then, those buyers will want to protect it and to push the price upwards from there again. Most likely from the place where they placed the most of their positions (0.6430). The Bigger Picture – Weekly Volume Profile Let’s now check the bigger picture and have a look at the Weekly Volume Profile. The Weekly Volume Profile shows how volumes were distributed throughout the whole week. I always check this profile with all my intraday trades. The ideal scenario is when the trading levels I pick are nicely visible there. The reason is that the Support/Resistance will not be important only for traders on the lower time frames, but also for traders who are trading higher time frames. In this case, it couldn’t be better! Our 0.6430 Support lies exactly at Point Of Control (POC) of the week. This means that the heaviest volumes this week were traded there. This makes the 0.6430 a very important. The Weekly POC is a very strong place to trade from, even if it was just on it’s own, without any other signals/confluences. Price Action Setup Another nice confluence is a setup called Resistance →Support . In short, it says that when a Resistance gets breached it then becomes a Support. This is one of my favorite Price Action Setups. If you look at the picture below, you can see that the price bounced very strongly of the 0.6430 area in the past. This means it was a Resistance. Then, as the Resistance got breached it then became a Support. Summary All in all we have three signals that confirm our 0.6430 Support. They are: 1. Volume Accumulation Setup 2. Weekly Point Of Control (POC) 3. Resistance → Support Price Action Setup I hope you guys liked today’s analysis. Let me know what you think in the comments below! Happy trading! -Dale
by Trader_Dale
How to use Session Volume HD to study price and volumeSession Volume HD was created to add a new level of detail and precision to studying price and volume for each session of trading. Session Volume HD dynamically adjusts to show you more data as you zoom in and out of the chart. Think of Session Volume HD like a magnifying glass for studying volume and price. What price levels are attracting the most trading volume? How does that change as we zoom in or out of a specific trading session? With Session Volume HD , the more you zoom, the more detail you will see about price and volume for a specific trading day. It's a perfect tool for traders and investors who quickly zoom in and out and change their chart resolution. In the example above, we are looking at two charts of Tesla both set to different timeframes and resolutions. Do you see the difference between the Volume Profiles shown on each chart? The chart on the left is a daily chart dating back to November. The chart on the right is a 65-minute chart zoomed in on only the last few days of trading. Both charts are using Session Volume HD to display a Volume Profile analysis, but each chart shows a different level of detail. That's because the Session Volume HD tool is dynamically adjusting as we zoom in or out. In other words, as the zoom increases, more volume profile levels are displayed. As you begin to understand and use Session Volume HD , it's important to remember that the tool can be customized to your needs and observations. Open its settings to get started. Every trader and investor has their own methodology and these settings will help you create your own unique style of research: Point of Control ( POC ) – The price level for the time period with the highest traded volume . This the red line shown on both charts within each Volume Profile region. Up Volume - Determines the color for the Up Volume or points where buying occurred and price increased. Down Volume - Determines the color for the Down Volume or points where selling occurred and price decreased. Value Area Up - Determines the color for the Value Area Up or where buying occurred in a high volume zone, say 70% of all tradable volume . Value Area Down - Determines the color for the Value Area Down or where selling occurred in a high volume zone, say 70% of all tradable volume . Profile High – The highest reached price level during the specified time period. Profile Low – The lowest reached price level during the specified time period. Value Area (VA) – The range of price levels in which a specified percentage of all volume was traded during the time period. Typically, this percentage is set to 70% however it is up to the trader’s discretion. Value Area High (VAH) – The highest price level within the value area. Value Area Low ( VAL ) – The lowest price level within the value area. We hope this tutorial helps you understand the power of Session Volume HD and other Volume Profile tools. More importantly, we hope it helps you understand all of the features, customizations, and functionality that come with them. Session Volume HD is one of the Volume Profile tools available to you and it's particularly helpful when zooming in and out of the chart, changing timeframes, and looking for additional detail as you study a specific session of trading. Thanks for reading and please leave any feedback or comments below. If you want to see more Volume Profile tools or features - we want to hear about it! We just may build it for you.
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