I am providing the information what I know or How I make use of the Volume Profile.

I am not Master, I
am trading the same system for 4 Months and it gives an edge. I am learning from the Group new things
everyday, So Its my contribution.

There are other concepts in VP, which I’m not discussing here.
What is Volume Profile (VP)

Volume Profile is an advanced charting study that displays trading activity over a specified time period at
specified price levels. It also called as Volume by Price. It is a very simple concept and provides the
greater edge.

Volume is the ultimate driving force of any script to move up or down. VP is based on the volume

Take an example of crude oil, say 10000 lots traded on Friday in crude oil. These lots should be traded at
different prices.

Volume profile plots the histogram on what price how much quantity is traded

In Traditional chart We plot Volume in X – axis, We can see what time or which candle is traded with
How much volume.

Above chart is traditional volume chart, you all know it, I wanted to show you the difference between VP
and traditional chart

In the Volume Profile (VP) chart we can see on which price how much volume is traded, When we apply
VP indicator, It plots an Histogram in the Y- axis, that means Volume by Price. Whatever Time frame you
select in the chart, The VP will not change because its plots on Price(Y-Axis)
I don’t want to disturb my Crude oil chart because I already Plotted my SR lines. Once theory part
completes I will explain the Crude chart with my markings.

Where to find VP Indicator

As per my knowledge, None of Brockers from India is providing VP. I use Tradingview.com for my
Trading purpose, Apart from Trading view Sierra chart also provides the VP. These are the Paid software
to make use of VP, they are providing Free trial also. In Tradingview, they are not providing charts for
Derivatives, Only cash market charts are available.
I heard that Sierra chart is providing Future charts also and Weekly Volume Profile also but it is
expensive.

Note: This is for your Information purpose only, I am not suggesting you to go for any of the charting
tool.

What are the components of VP

Point of Control (POC) – The price level for the time period with the highest traded volume. That mean
Highest traded activity(Buy or Sell) happened there. If there is Institutional traders takes a position there
they will try to protect the price at that area, Hence It is very important.

Profile High – The highest reached price level during the specified time period(High of the session)
Nothing but Day High
Profile Low – The lowest reached price level during the specified time period(Low of the session) Nothing
but Days Low

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.
If 1000000 shares traded in a day, 700000 shares were traded in the Value Aarea.
Value Area High (VAH) – The highest price level within the value area.

Value Area Low (VAL) – The lowest price level within the value area.
Node – Each bar of the VP called as Node

POC, VAH ,VAL are very important concepts, leave it other concepts profile high and low

Let’s move to next

POC is Very much important and plays a vital role then VaH and VaL follows
POC, VaH, VaL are very dynamic in a running market, Based on the volume trades it will shift. Previous
days values are Static.
Example: In running market, If yo
70% of shares traded in the value area
This is standard setting, we can change it, clear....
Are you getting gif format
Others, pls confirm...
Nikhil, pls send your screenshot
Let me see, how you are getting it...
It’s perfect
how to calculate that 70% volume traded in POC area?

It will automatically calculate an plot in bright colour.

I want to see Zerodha chart

Do you observe , there is no POC, VAH VAL

Yes...

Is VP a stand alone tool?

Yes, You can use it as stand alone or you can use it with your trading system to avoid whipsaws. Mostly I
trade on Crude oil and make use of VP as single tool and sometimes I will use other Patterns(Aggressive
entry)
Yesterday I prepared the presentation, otherwise it will takes much time of your. When I am pasting the
screenshot, it’s coming as gif format, pls bear with me...

In yesbank chart, you might hi observed how poc acting

Each Profile is for one day
One more chart for your reference, Its L&TFH with different scenario, I will explain Fridays Price action
here
Red line in yellow box is the poc of Thursday
Yes
Now Last 5 days chart, self explanatory… Check the POC of previous day and read the next chart

That’s advanced concept

One more Union bank

If multiple POCs are coinciding at same price, that will become very strong Support or Resistance
90% of the times POC gives reaction, it may not break it on First time. Check the Price action along with
Volume Profile.

Clear friends...
Any questions here
No questions
No of buyer and seller, we are not interested buyer are seller.
Our main cocerntation is on poc,
How I use in Trading
I will make POC node as a zone, Higher end is an entry in case of Buy and Lower end is entry incase of
Sell.

Where is the Stoploss

If there is a zone near by the POC, I will put it as SL, sometimes I use Opposite side of the POC Zone

How to make use of VaH & VaL:

These two areas are act as support and Resistance.

We experience Gap up or Gap down most of the times and we may not know whether it will sustain or
not. If Price opens above VaH or below VaL, more chances to sustain. Once this area breaks Price will
make return move to previous close, We must be careful if it breaks
Look at the power of poc

Price action at poc

How to select VP indicator in Tradingview?
From Indicator list select Volume Profile>Session Volume, it will plot the Volume Profile for day wise
Histogram.

Give me 2 mints time, will be back

Where is vah line in this chart

Yellow line at 606

If it breaks, it will try to come to previous day v

V
Close
Any questions.?
Here gapup 606 is VAL (low) of previous day. Right.

what do you mean "If it breaks, it will try to come to previous day v "?
> Nitin
> what do you mean "If it breaks, it will try to come to previous day v "?
Previous days close, sorry for the typo error
> Here gapup 606 is VAL (low) of previous day. Right.
Just a minute, I will post my chart

Previous day VAH and VAL acts as support and resistance

so u bought it when it reached previous day POC?

Yes

Big players bought at 72.28, they took crude to 73

73.5
The white line I marked in the chart are there is pov in the history

Read it as poc not pov

I will be active after 1 hour, going out. Let me know any queries