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TOPIC: VOLUME PROFILE
In this post an attempt will be made to share some ideas about VOLUME PROFILE.
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TOPIC: VOLUME PROFILE
In this post an attempt will be made to share some ideas about VOLUME PROFILE.
Kindly RE-TWEET this post so that more people can take benefit from the same
Stay Connected
Further additions will be done in this thread
POST #1
Generally when we are dealing with VOLUMES in terms of TECHNICAL ANALYSIS we get to see VOLUMES in two contexts.
1. TIME BASED VOLUMES
2. PRICE BASED VOLUMES
See the attached image for better understanding
Cont..
Generally when we are dealing with VOLUMES in terms of TECHNICAL ANALYSIS we get to see VOLUMES in two contexts.
1. TIME BASED VOLUMES
2. PRICE BASED VOLUMES
See the attached image for better understanding
Cont..
In the first image you are able to see that VOLUME is plotted in context of TIME which most of TA use but when you see the second image you are able to see that VOLUME is plotted in context of PRICE. This is the major difference between REGULAR VOLUMES and VOLUME PROFILE
Cont..
Cont..
VOLUME PROFILE is also of TWO TYPES
1. COMPOSITE VOLUME PROFILE (CVP)
2. SESSION WISE VOLUME PROFILE (SVP)
CVP shows the merged volumes at difference price for all the sessions taken together whereas SVP shows un-merged volumes at different price for different session separately
1. COMPOSITE VOLUME PROFILE (CVP)
2. SESSION WISE VOLUME PROFILE (SVP)
CVP shows the merged volumes at difference price for all the sessions taken together whereas SVP shows un-merged volumes at different price for different session separately
POST #2
CLARIFICATIONS:
1. There would be many concepts in VOLUME PROFILE which are very much relate-able to MARKET PROFILE
2. Don& #39;t think that VOLUME PROFILE is a STRATEGY to trade rather it helps to find out WEAKNESS - STRENGTH so use it in combination with your STRATEGY
CLARIFICATIONS:
1. There would be many concepts in VOLUME PROFILE which are very much relate-able to MARKET PROFILE
2. Don& #39;t think that VOLUME PROFILE is a STRATEGY to trade rather it helps to find out WEAKNESS - STRENGTH so use it in combination with your STRATEGY
POST #3
BASIC CONCEPTS:
1. VALUE AREA
The area of PRICE where almost 70% of VOLUMES have been built is considered as VALUE AREA.
Top of such VALUE AREA is marked as VALUE AREA HIGH
and bottom of such VALUE AREA is marked as VALUE AREA LOW. See the image for better understanding
BASIC CONCEPTS:
1. VALUE AREA
The area of PRICE where almost 70% of VOLUMES have been built is considered as VALUE AREA.
Top of such VALUE AREA is marked as VALUE AREA HIGH
and bottom of such VALUE AREA is marked as VALUE AREA LOW. See the image for better understanding
1(A). VALUE AREA [VA] (CONTINUED)
In the below attached you will be able to find VA from the view point of SESSION PROFILE marked with VAH &VAL
Before I conclude VA just understand that its the zone where price has spent majority of time and volumes have developed in that region
![1(A). VALUE AREA [VA] (CONTINUED)In the below attached you will be able to find VA from the view point of SESSION PROFILE marked with VAH &VALBefore I conclude VA just understand that its the zone where price has spent majority of time and volumes have developed in that region](https://pbs.twimg.com/media/EVkzyIWU4AEbZR-.jpg "1(A). VALUE AREA [VA] (CONTINUED)In the below attached you will be able to find VA from the view point of SESSION PROFILE marked with VAH &VALBefore I conclude VA just understand that its the zone where price has spent majority of time and volumes have developed in that region")
In the below attached you will be able to find VA from the view point of SESSION PROFILE marked with VAH &VAL
Before I conclude VA just understand that its the zone where price has spent majority of time and volumes have developed in that region
2. VPOC (VOLUME POINT OF CONTROL)
In context of MARKET PROFILE "POC" means that PRICE LEVEL wherein majority of TPOs are printed and if more than 10 TPOs are printed at a particular PRICE LEVEL then its known PPOC
Cont..
In context of MARKET PROFILE "POC" means that PRICE LEVEL wherein majority of TPOs are printed and if more than 10 TPOs are printed at a particular PRICE LEVEL then its known PPOC
Cont..
From the view point of VOL. PROFILE POC (VPOC) means the HIGH VOLUME NODE i.e the PRICE LEVEL at which highest volumes are built from the whole profile.
See the below attached image you will be able to find BLACK HORIZONTAL LINES in every profile they are VPOC
See the below attached image you will be able to find BLACK HORIZONTAL LINES in every profile they are VPOC
VPOC is used for following purpose:
1. Trades can be initiated on the basis of VPOC
2. Targets can be also set with the help of VPOC
3. Shifting of VPOC also helps in understanding market sentiments
We will discuss all these things once we cover the whole set of BASIC CONCEPTS
1. Trades can be initiated on the basis of VPOC
2. Targets can be also set with the help of VPOC
3. Shifting of VPOC also helps in understanding market sentiments
We will discuss all these things once we cover the whole set of BASIC CONCEPTS
