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Volume Profile

The ART of the Fade.Tilray is a Cannabis stock, but the importance of this post is the art of fading. I have numerous posts on Volume profiles and how and why they are very effective, and have kinda made it a mission to show you how great they are! Here I am showing you how to fade around value, notice the profile, notice how price is trading sideways in this range and building mass of orders, I have used the two blue horizontals to show the outerside of range, and look how price has acted! Absolutely beautiful fades back into Value! honestly so beautiful. Price attempts to break the outside boundaries before being turned around and heading back into the mass of orders, it is truly beautiful. The takeaway from this post is the importance of using a volume profile in trading, as the big boys are! step up your game now!
NASDAQ:TLRYEducation
by ZenFlo
2
Volume Profile and why you need it.Volume profile is an underused and quintessential part of trading, it tells you build up of orders, it tells you fair price, and it tells you where the majority of the liquidity is. You can see in this chart, I have taken it apart piece by piece to show you the basic mechanics and why price moves the way it does, now be honest, how many of you rushed into selling GU last minute because the price was collapsing? Well the funny thing is despite not being alone in doing so in the retail trading world, big banks and instituitions were already two steps ahead as expected, check the Volume profile, notice how it declined on a massively falling currency, what this is telling you is that the amount of exchanges is very low, as the shorters pushed price down they began to close positions, also what would have happened is the amount of retail money and money that isnt associated to high end firms would have started to see negative positions so what do they do? they have to close these sells with buys! so not only are the big banks taking profit, they are also using you as rocket fuel! as the masses of small money becomes negative/trapped/stoplosses, price reacts in an equal and opposite reaction, price rallies. So where is price heading too? it is heading back to an area where it can happily trade, and this is shown by larger bars on the VP, price wants to be happy, to be happy it needs to transact alot! So two takeaways... One, dont rush into falling or rising currencies! as they are heading into areas of low volume and will use mean reversion to run you over... Two, Utilise the fact price has low VP build up to your advantage! use price action and catch moves like that GU rally back to an area of more transactions! and a final little trick, use the VP to tell you if your orderblock is real or a figment of your imagination! feel free to drop some questions below, I may have to make more posts on VP for it to make sense. Maybe I will also make some posts on examples of trading using it, and what to do and not to do. Thinking about it, there is more posts to do, I need to show how to trade mean reversion and 'mountain to mountain' tactics. Hope you find this post interesting, as I take a journey of taking back the layers of many traditional strategies, indicators and the deeper world of maths, I am doing this to try help new traders actually get somewhere! So please give me a like and a follow, I want to expand my reach here on tradingview :) All the best ZenFlo.
Education
by ZenFlo
5
How to use Session Volume HD to study price and volumeSession Volume HD was created to add a new level of detail and precision to studying price and volume for each session of trading. Session Volume HD dynamically adjusts to show you more data as you zoom in and out of the chart. Think of Session Volume HD like a magnifying glass for studying volume and price. What price levels are attracting the most trading volume? How does that change as we zoom in or out of a specific trading session? With Session Volume HD , the more you zoom, the more detail you will see about price and volume for a specific trading day. It's a perfect tool for traders and investors who quickly zoom in and out and change their chart resolution. In the example above, we are looking at two charts of Tesla both set to different timeframes and resolutions. Do you see the difference between the Volume Profiles shown on each chart? The chart on the left is a daily chart dating back to November. The chart on the right is a 65-minute chart zoomed in on only the last few days of trading. Both charts are using Session Volume HD to display a Volume Profile analysis, but each chart shows a different level of detail. That's because the Session Volume HD tool is dynamically adjusting as we zoom in or out. In other words, as the zoom increases, more volume profile levels are displayed. As you begin to understand and use Session Volume HD , it's important to remember that the tool can be customized to your needs and observations. Open its settings to get started. Every trader and investor has their own methodology and these settings will help you create your own unique style of research: Point of Control ( POC ) – The price level for the time period with the highest traded volume . This the red line shown on both charts within each Volume Profile region. Up Volume - Determines the color for the Up Volume or points where buying occurred and price increased. Down Volume - Determines the color for the Down Volume or points where selling occurred and price decreased. Value Area Up - Determines the color for the Value Area Up or where buying occurred in a high volume zone, say 70% of all tradable volume . Value Area Down - Determines the color for the Value Area Down or where selling occurred in a high volume zone, say 70% of all tradable volume . Profile High – The highest reached price level during the specified time period. Profile Low – The lowest reached price level during the specified time period. Value Area (VA) – The range of price levels in which a specified percentage of all volume was traded during the time period. Typically, this percentage is set to 70% however it is up to the trader’s discretion. Value Area High (VAH) – The highest price level within the value area. Value Area Low ( VAL ) – The lowest price level within the value area. We hope this tutorial helps you understand the power of Session Volume HD and other Volume Profile tools. More importantly, we hope it helps you understand all of the features, customizations, and functionality that come with them. Session Volume HD is one of the Volume Profile tools available to you and it's particularly helpful when zooming in and out of the chart, changing timeframes, and looking for additional detail as you study a specific session of trading. Thanks for reading and please leave any feedback or comments below. If you want to see more Volume Profile tools or features - we want to hear about it! We just may build it for you.
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