Thread by @ThiccTeddy

THE BEGINNER'S GUIDE TO VOLUME PROFILE & WHY IT'S THE MOST UNDERRATED INDICATOR IN THE WORLD🔥🔥

This thread will teach you the basics of Volume Profile & explain a few ways that Volume Profile can help you make money

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Volume Profile is also called Volume By Price, Visible Range Volume Profile, VRVP, Volume at Price, VAP, Horizontal Volume, etc

Today we will be calling it Volume Profile

Volume Profile is a horizontal histogram shown directly on your chart. It shows you the amount of shares traded at each price level

Complicated definition👇

This is how Volume Profile is calculated

Traders usually use Volume Profile for 3 things

1) To find Key Levels
2) To find Volume Deserts
3) To determine buying/selling volume

Finding Key Levels

This part is simple, the high volume peaks are going to be your key levels

High volume indicates high interest from buyers & sellers. High interest means that we are likely to see bounces, rejections, & breakouts at those levels

VPOC

The largest volume peak is called Volume Point Of Control (VPOC)

VPOC is typically the strongest key level based on Volume Profile

Finding Deserts

Deserts are the low volume areas between the volume peaks

These areas have not shows a lot of interest from buyers and sellers. Price likes to trend through deserts until it reaches the next volume peak

Determining Buying/Selling Volume

Volume Profile will tell us how much buying & selling we saw at each price

On my chart the red is the down volume (selling) and the yellow is the up volume (buying)

My Volume Profile Settings

Definition✅
Finding key levels✅
Deserts✅
Buying/Selling✅
My settings✅

THANK YOU FOR READING THIS THREAD. I HOPE IT HELPED YOU UNDERSTAND VOLUME PROFILE

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