![]() Similar to other charting tools, the volume profile indicator has numerous uses. These areas can help you find value areas to make trades and also where to take profit.įor example if you have been in a long running trend trade and you notice that volume is beginning to spike, you could begin to look at managing your trade by taking profit or trailing your stop loss. This is something you can take note of and when you see a large spike in volume begin to look for and confirm reversal trades.Īnother volume profile strategy that works well is identifying the important points where the market is showing increased and decreased amounts of volume. This is also the reason why you will very often see a large increase in the amount of volume just before the markets make a reversal or change trend direction. Volume shows us whether the interest of making trades in the Forex pair or other asset is increasing or decreasing. Volume is what the markets need to make their next move. The volume profile allows you to analyze the market trend and also potential areas where price is about to make a reversal. There are two very popular ways you can use the volume profile indicator.Īnalyze the Trend with the Volume Profile Indicator How to Use the Volume Profile Indicator in Your Trading Strategy NOTE: You may also like the market profile indicator. The information obtained by this indicator is easily visible on your charts and makes it easier for you to make some key trading decisions. The volume profile indicator takes the total volume of an asset traded at a certain price level during a specific period and divides it by the total buy or sell volume. This indicator plots a histogram on your chart and reveals the dominant and significant price levels based on their volume. The volume profile indicator is a charting tool that displays an asset’s trading activity over a specified period at a specific price level. Volume Profile Indicator for MT4 Free Download. ![]() Analyze the Trend with the Volume Profile Indicator.How to Use the Volume Profile Indicator in Your Trading Strategy. ![]()
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