TradingView Volume Profile: A Comprehensive Guide for Traders

Volume Profile on TradingView

Volume Profile is a powerful and advanced charting study that provides traders with valuable insights into trading activity at specific price levels. Widely used on the TradingView platform, Volume Profile offers a unique perspective on volume distribution and its relationship with price action.

In this comprehensive guide, we'll explore the intricacies of the TradingView Volume Profile, learn how to enable and use this tool and discover its practical applications in trading.

What is Volume Profile?

Volume Profile is a charting study that maps the volume traded at specific price levels over a user-defined time period. The volume profile requires a premium TradingView subscription, so consider getting a 30-day TradingView free trial to test it out.

Unlike traditional volume indicators that display volume as vertical bars for each time period, Volume Profile plots volume as a horizontal histogram on the chart, providing a clear visual representation of the volume distribution among different price levels.

The key attributes of the Volume Profile include:

• A holistic view of the volume traded at each price level

• Insights into areas of high liquidity (high volume) and low liquidity (low volume)

• Identification of significant price levels that may act as support or resistance

Enabling and Accessing Volume Profile on TradingView

To enable Volume Profile on TradingView, follow these simple steps:

1. Open a chart on the TradingView platform

2. Navigate to the toolbar at the top of the chart

3. Select the "Indicators" icon (looks like a flask)

4. Search for "Volume Profile" in the search bar

5. Choose your desired Volume Profile type (Visible Range, Fixed Range, Session Volume, etc.)

6. The Volume Profile will be added to the chart

Types of Volume Profile Indicators on TradingView

There are four main types of Volume Profile indicators available on TradingView:

• Volume Profile Visible Range (VPVR): Displays volume distribution for the visible range of bars or candles on the chart. It adjusts dynamically as you change the chart view.

• Volume Profile Fixed Range (VPFR): Allows you to define a fixed range for the volume profile based on a specific time period.

• Volume Profile Session Volume (VPSV): Shows volume distribution for individual trading sessions.

• Volume Profile Session Volume HD: A dynamic version of Session Volume that recalculates the profile as you zoom in or out on the chart.

Each type of Volume Profile offers different advantages, and the choice depends on your trading strategy and analysis needs.

How to Read the Volume Profile

Reading the Volume Profile involves understanding its key components:

• Point of Control (POC): The price level with the highest volume traded. POC acts as a strong support or resistance level.

• Value Area (VA): The price range where a specified percentage of the volume was traded (default set to 70%). It includes Value Area High (VAH) and Value Area Low (VAL), often used as support and resistance levels.

• High Volume Nodes (HVNs): Areas where a large amount of volume was traded. HVNs may indicate strong support or resistance levels.

• Low Volume Nodes (LVNs): Areas with low volume indicating potential price breakouts or quick price movements.

Market Profile vs. Volume Profile

Market Profile is another charting study that organizes price and time information into a distribution similar to Volume Profile. However, there are key differences:

• Market Profile: Organizes price data into a statistical distribution based on time. It represents the market's activity over time and highlights prices where the market spent the most time. Market Profile is often presented as a bell-shaped curve or "TPO" (Time Price Opportunity) chart.

• Volume Profile: Maps the volume traded at specific price levels. It provides insights into the distribution of volume among different price levels and identifies areas of high and low liquidity.

While both studies offer valuable insights, Volume Profile focuses on the volume aspect, giving traders a clearer understanding of supply and demand dynamics at each price level.

Market Profile on TradingView

While TradingView offers the Volume Profile indicator as a built-in feature, traders who are interested in utilizing Market Profile can also find custom Market Profile indicators on the platform. Market Profile is a charting study that organizes price data into a statistical distribution based on time.

Similar to Volume Profile, it is used to understand the market's activi