How to Use Fixed Range Volume Profile on TradingView

1️⃣ Why Fixed Range Volume Profile Matters

✅ It helps you spot real price structure where traders were active, not just where price passed through.

Useful for:

Identifying Supply & Demand zones
Understanding nstitutional activity (volume concentration = likely smart money involvement)
Analyzing range-bound markets
Confirming pullbacks or entries in trending setups

There are two different tools: one is called Volume Profile, and the other is Fixed Range Volume Profile. To learn more about them, check out the link below.

Volume Profile Indicators: basic concepts: https://www.tradingview.com/support/solutions/43000502040-volume-profile-indicators-basic-concepts/

Fixed Range Volume Profile: https://www.tradingview.com/support/solutions/43000707985-fixed-range-volume-profile/

2️⃣ What is Volume in Trading?
Volume refers to the total number of units (e.g., shares, contracts, coins) traded during a specific time period. It measures the market's participation.

✔️ High Volume = strong interest and confirmation of price moves.
❌ Low Volume = weak conviction, indecision, or potential false moves.

Volume is calculated by counting all completed trades in a candle both buying and selling.

Learn more about volume here: https://www.tradingview.com/support/solutions/43000591617-volume/

3️⃣ What is Fixed Range Volume Profile?
Fixed Range Volume Profile is a tool you can draw on your chart to check how much trading happened at different price levels, but only within the range you select. You pick the start and end point, and the tool shows volume activity just in that area.

It shows three main levels:
🔴 Point of Control (POC): the price where the most trading happened
🟢 Value Area High (VAH): the highest price in the area where most trades occurred (about 70% of total volume)
🔵 Value Area Low (VAL): the lowest price in that same area

These three levels show the price range where most trading took place also called the value area.

4️⃣ Why Fixed Range Volume Profile Matters
It helps you spot real price structure where traders were active, not just where price passed through.

Useful for:

Identifying Supply & Demand zones
Understanding institutional activity (volume concentration = likely smart money involvement)
Analyzing **range-bound markets
Confirming pullbacks or entries in trending setups

5️⃣ How to Use Fixed Range Volume Profile on TradingView
Steps:
1. First, look for a clear range on your chart. A range is a sideways movement where price is mostly moving back and forth instead of trending.
2. I like to use the 4-hour chart for this, but you can use any timeframe. Using candles with clearer shapes can help you see the range more easily.
3. Once you see a range, go to the left-hand toolbar and select the Fixed Range Volume Profile tool.
4. Click at the beginning of the range, then drag your mouse to the end of the range.
5. Let go of the mouse, and the volume profile will appear on that section of the chart.

Analyze:
POC: Price may often return to this level because it's where most trading happened
VAH: Price could have a harder time moving higher if it reaches this level may act like resistance
VAL: Price may find support around here — traders bought more in this area

1. Find the Range

2. Draw your Profile

3. You should treat your volume range like a basic support and resistance level. What you want to see is a flip between support and resistance.

4. If the price breaks above the volume profile and keeps going higher, you want it to come back and retest that same range this time acting as support.

5. Your entry should be near the support. Your stop-loss should be placed above the high of the breakout or a logical structure. Of course, setting a stop-loss always depends on more context, like the overall market structure and your risk management plan.

6️⃣ Practical Scenarios

✔️ Use it during sideways or quiet market phases (called consolidation) to see where most of the trading happened before the market moved
✔️ Try it on pullbacks in trending markets to check if price is returning to an area of high volume
✔️ Draw profiles on different price swings to spot areas where volume keeps showing up again and again

Example:

⚠️ Limitations
Fixed Range Volume Profile might not work well when:

The asset has very little trading volume (like new coins or very small stocks)
There’s a big news event causing unexpected volume spikes
The market is moving fast in one direction, and the volume zones don’t hold

⚠️ A couple of common mistakes traders make when using Fixed Range Volume Profile:

They apply it in trending markets. This tool works best in sideways or ranging markets, not when price is trending strongly up or down.
They include breakout volume. Breakouts often include forced liquidations or trapped traders this can create misleading spikes in volume.

7️⃣ Summary

Fixed Range Volume Profile helps you see where most trades happened in a specific part of the chart. It highlights price zones where traders were most active, which can help you understand possible support, resistance, or value areas.

✅ Good for:

Markets that are going sideways
Double-checking volume around key levels
Spotting price zones where support or resistance might appear

Disclaimer: This is not financial advice. Always do your own research. This content may include enhancements made using AI.

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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.

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