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My personal interpretation of the Volume Footprint chart

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I signed up for an expensive plan on TradingView, but I think there are some parts of the chart that I can't use properly.

I think the Volume Footprint chart is a chart that can be used when you sign up for a premium plan. (I may be wrong, so please check.)

I think it's because I'm used to the old way, so I feel resistant to new things, and the explanation is difficult to read.

In order to solve that problem a little, I'd like to explain how to interpret the chart using only the core interpretation methods.

Since my explanation may be different from the creator's intention, I strongly recommend that you read the creator's explanation.

Volume Footprint Chart Description:
tradingview.com/?solution=43000726164

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I think you should pay attention to and interpret the part indicated above.

I think the section marked as VAL, VAH is the section that is mainly traded.

Therefore, I think that depending on which direction it deviates from this section, it will affect the future flow.

Therefore,
- If it rises near or above VAH, it is likely to show an upward trend,

- If it falls near or below VAL, it is likely to show a downward trend.

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The next thing to look at is the column indicated next to each volume. (The part that the arrow points to)

- The column in the Sell Volume section indicates that it is a section with strong selling pressure,
- The column in the Buy Volume section indicates that it is a section with strong buying pressure.

(The creator explains that this is the part that is indicated by the imbalance of volume.)

Anyway, since there is a high possibility of a rebound or reversal in the part where this column is indicated, I think it can be a tradable section depending on whether it receives support or resistance in this part.

-
The Delta section shows the difference between Sell Volume and Buy Volume.

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The time frame charts that are good for viewing the volume footprint chart are 1s, 1m, 15m, 1h, and 1D charts, so I recommend viewing them with the corresponding time frame charts.

If it deviates from the VAL, VAH area near 1, 1-1 and 2, 2-1 shown on the chart, a trend is formed, so you should check whether it deviates from this section.

If it does not deviate, it can be interpreted that there is a high possibility of sideways movement.

-
Therefore,
1. Is it located near VAL, VAH?
2. Is there a section where columns are created next to Sell Volume, Buy Volume?

I think this chart allows you to detect the trading volume, that is, the movement of buyers and sellers, with the above two things.

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Have a good time.
Thank you.

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Comment

The section marked with a circle is the section where the trading volume is unbalanced.

In other words, it corresponds to the section where the buying force has increased.

Comment

Selling and buying are fighting.

Since the buying force is higher, it can be interpreted that the buying force is more likely to win.

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