Volume profile is a method of plotting trading activity that reveals information about supply and demand zones through identification of high volume nodes (HVN). These high volume nodes act as support and resistance levels as traders and smart money use them as entry and exit points. Integrating volume profile with volume spread analysis can provide benefits like identifying periods of re-accumulation, re-distribution, and absorption of supply and demand.
Volume profile is a method of plotting trading activity that reveals information about supply and demand zones through identification of high volume nodes (HVN). These high volume nodes act as support and resistance levels as traders and smart money use them as entry and exit points. Integrating volume profile with volume spread analysis can provide benefits like identifying periods of re-accumulation, re-distribution, and absorption of supply and demand.
By Dean What is Volume Profile? How is Volume Profile plotted? What information does Volume Profile reveal?
What is Volume Profile?
How is Volume Profile plotted?
What is Volume Profile?
Volume Profile and Context High Volume Nodes (HVN)
How Volume Profile can help?
How Volume Profile can help?
How Volume Profile can help?
In an Uptrend when we hit an HVN below CMP, Those who missed the bus when the up move started after the consolidation will try to get in. If someone was short and has not covered it yet, they will try to get out of their positions. Some smart traders who know that SM is active in HVNs will try to buy hoping the SM would defend their stand. Also if the SM is still bullish they will defend it, but they may use a sharp spike below the HVN to get the weak hands out of the markets.
Using HVNs as Support and
Resistances Zones Why HVNs act as supply and demand zones?