But What is the Volume Profile actually?

A Volume Profile is an advanced charting indicator that displays the total volume traded at every price level over a user-specified time period. It is a horizontal graph that highlights if there are more buyers or sellers.

What are the Uses of Volume Profile?

• It can identify the key Support & Resistance Levels
• Also, identify the Accumulation & Distribution Zones
• We can easily determine the Risk to Rewards (TP vs SL)
• Identify Balanced & Imbalanced Markets
• Determined the Strength of the Trend

Volume Profile Components

• The Value Area (VA) is the price range in which 70% of the total volume was traded, and it is frequently colored differently for easier understanding in Live Market.
• Value Area High (VAH) is the highest price in 70% of the total value area.
  
• Low-Value Area (VAL) is the lowest price in 70% of the total value area.
  
• Point of Conytol (POC) is the single price level where the most volume was traded for that session and represents the area with the most open trading positions. Normally referred to as the POC

Volume Profile act as Support & Resistance

A Volume Profile & POC is act as Support & Resistance. Many Traders use it to find Major S/R created by Big players with High Volume. Just because we are tracking the Smart Money Activity, our Trading Accuracy is increased

Volume Profile is used to Entry - Exit - SL

Volume Profile is also used to determine the Entry - Exit - SL zone. When the price closed above the High Volume Area, we consider Entering the trade, & Placing SL below the Area. And until POC will shift above, we will hold the Trade & Trail SL. Some traders also plan their trade like this

Happy Trading & Investing!

Disclaimer: The above article is based on my personal knowledge & experiences. I am not a SEBI Registered Analyst. P never provides any Tips, Paid Calls, Recommendations, Assurance, Guaranteed Services, etc. Please consult with your Financial Advisor before doing anything in Stock Market. I am not liable for any Profit or Losses