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The ONLY Volume Profile Trading Video You'll EVER Need!

Learn how to use volume profile trading tools for precise entries and exits, including anchored, fixed range, and session volume profiles.

Ask about this video. Answers come from its transcript only — with the timestamp, so you can check them.

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Key Takeaways

  • Volume profile provides precise entry and exit points by analyzing volume at price levels rather than over fixed time periods.
  • High volume nodes indicate strong interest zones where price is likely to react, creating trading opportunities.
  • Combining volume profile with other technical tools like support/resistance or Fibonacci retracements increases trade reliability.
  • Anchored, fixed range, and session volume profiles serve different purposes and can be used depending on trading style and data needs.
  • Free volume profile tools on TradingView can be as effective as paid versions with manual adjustments.

What the video covers

  • Volume profile is a tool that shows volume traded at each price level within a specified time frame, displayed vertically on the price chart.
  • It highlights high volume nodes (HVN) and low volume nodes (LVN), indicating areas of strong and weak trading interest respectively.
  • The value area consists of three key levels: value area high, value area low, and point of control (POC), representing where 70% of volume was traded.
  • Anchored volume profile allows traders to select a starting point and view volume distribution from that point to current price.
  • Fixed range volume profile differs by allowing volume analysis on historical price data without including current market price.
  • Session volume profile automatically marks volume profiles of previous trading sessions, useful for day traders to identify support and resistance.
  • Volume profile levels gain strength when combined with traditional support/resistance or Fibonacci retracement levels for higher confidence trades.
  • Customization options in volume profile tools include adjusting colors and turning on/off value area high and low lines.
  • Old points of control from fixed range profiles can act as strong levels for price reactions and short-term trading opportunities.
  • Manual use of free fixed range volume profile can substitute for paid session volume profile features on TradingView.

Answers

Questions about this video

What is the point of control in volume profile trading?

The point of control (POC) is the price level where the highest volume was traded within a specified time frame, representing the area of greatest trader interest.

How does anchored volume profile differ from fixed range volume profile?

Anchored volume profile displays volume from a selected start point to the current market price, while fixed range volume profile analyzes volume only within a chosen historical price range, excluding current price action.

Can I use volume profile tools for free on TradingView?

Yes, TradingView offers free fixed range volume profile tools that can be used manually to analyze volume profiles, providing functionality similar to paid session volume profile indicators.

Full Transcript — Download SRT & Markdown

00:00
Speaker A
This is the volume profile, and it can give you precise sniper entries for your trades. Most people don't know about this one simple tool, but after watching this video, you'll be able to add this to your trading arsenal. The volume profile is a versatile tool used by traders to analyze the volume traded at each price level within a specified time frame. Unlike traditional volume indicators that show volume over a fixed period, volume profile displays volume distribution vertically on the price chart.
00:24
Speaker A
at each price level within a specified time frame unlike traditional volume IND indicators that show volume over a fixed period volume profile displays volume distribution vertically on the price chart now why is this important high volume nodes at a level indicate that there was high interest
00:46
Speaker A
Now, why is this important? High volume nodes at a level indicate that there was high interest in buying or selling at that area. So, when price revisits this area, we can expect to see a reaction again, which presents us with an opportunity to enter and exit trades. The volume profile will highlight a range where the majority of trading activity took place. This range is called the value area. It consists of three key levels: the value area high, the value area low, and the point of control. This is a range of price levels in which a specified percentage of all volume was traded during that time period. Typically, this percentage is set to 70. The point of control represents the price level where the volume was most traded or where traders were most active.
01:05
Speaker A
called the value area it consists of three key levels the value area high the value area low and the point of control this is a range of price levels in which a specified percentage of all volume was traded during that time period typically this percentage is set to 70 the point
01:29
Speaker A
Now, let's go over some various volume profile tools that can help us. All of them can be found on TradingView.com. Sign up using the link in the video description below. A great place to start is the anchored volume profile. You can find this right here in the toolbar on the left, just above the brush icon. With volume profile tools, you typically want to use them on ranges. So, identify the first point where the range starts and click on it. Now, the anchored volume profile will be displayed on the right. It covers the start of the range to the current market price and into future price action.
01:47
Speaker A
start is the anchored volume profile you can find this right here in the toolbar on the left just above the brush icon with volume profile tools you typically want to use them on r ranges so identify the first point where the range starts and click on it now the anchored volume profile
02:08
Speaker A
All of the bars here show you volume represented at each price level. The larger the bar, the more volume was traded at that level. These high volume bars are called high volume nodes and typically are where we'll be looking for trading opportunities. You'll also notice low volume bars. These are low volume nodes. These are price levels within the chart that have a low volume of trades. It represents a level of less interest where there is a lack of buying or selling activity. This red line is the point of control, which is the price level with the highest traded volume. It represents the most significant price level and highest interest to traders.
02:27
Speaker A
high volume nodes and typically are the are where we'll be looking for trading opportunities you'll also notice low volume bars these are low volume nodes these are price levels within the chart that have a low volume of Trades it represents a level of less interest where there is a lack of buying
02:47
Speaker A
This is where there is the most buying and selling activity. If we double-click on the anchored volume profile, we can open up the settings. Here, we can customize colors, adjust our settings, and parameters. For now, we'll turn on the value area high and the value area low. This will give us two additional lines highlighted on our chart, and these are the levels that typically you want to pay attention to.
03:06
Speaker A
profile we can open up the settings here we can customize colors adjust our settings and parameters for now we'll turn on the value area high and the value area low this will give us two additional lines highlighted on our chart and these are the levels that typically you want to
03:23
Speaker A
Just like every other indicator, you want to combine this with other confluence, like support and resistance levels or Fibonacci retracements. So, whenever one of these volume profile levels is near a traditional horizontal support or resistance, then that area becomes even stronger, and you can have a higher confidence of a trade playing out from that level.
03:42
Speaker A
stronger and you can have a higher confidence of a trade laying out from that level now let's go over fixed range volume profile you can find this in the same section as the anchored volume profile but there's a big difference between the two the anchored volume profile displays volumes at spe
04:00
Speaker A
Now, let's go over fixed range volume profile. You can find this in the same section as the anchored volume profile, but there's a big difference between the two. The anchored volume profile displays volumes at specific ranges that are selected, which includes current market price. However, with the fixed range volume profile, we can choose to not include the current market price action, opting to use it only on historical price data. This can be very useful since old points of control can still provide strong levels on our current chart.
04:21
Speaker A
strong levels on our current chart we'll be able to mark out multiple areas within the fixed volume range profile this way as we can see here price has reacted to every old point of control once it broke out of the range and came back now they don't mean a complete reversal of trend but it
04:40
Speaker A
We'll be able to mark out multiple areas within the fixed volume range profile this way. As we can see here, price has reacted to every old point of control once it broke out of the range and came back. Now, they don't mean a complete reversal of trend, but it does provide you with a short-term day trading opportunity.
05:00
Speaker A
earlier can basically do the same thing as this paid one the difference is that the session volume profile indicator automatically marks out all of the volume profiles of the previous trading sessions while with the free one you'll have to do this manually that's it so don't upgrade just
05:18
Speaker A
Now, let's go over the session volume profile indicator. This feature does require a paid subscription on TradingView. If you don't have a premium membership, don't worry because the free fixed range volume profile tool that we covered earlier can basically do the same thing as this paid one. The difference is that the session volume profile indicator automatically marks out all of the volume profiles of the previous trading sessions, while with the free one, you'll have to do this manually.
05:37
Speaker A
days this is generally how you should be looking to use this tool via the volume profile of the previous days you might wonder why don't we use the current day session volume since the trading day has not yet ended and is constantly changing in real time this can cause fake signals or flaws
05:57
Speaker A
That's it, so don't upgrade just for this. Here, we have the session volume profile. Each range represents one trading day. This tool is best used for day traders looking for quick trades in and out. Look closely. You can see how the points of control of past trading sessions have acted as support and resistance in the following trading days. This is generally how you should be looking to use this tool via the volume profile of the previous days.
06:19
Speaker A
you may notice how it was ranging for a while before it broke down we'll mark this range out with our volume profile in order to identify the point of control so first select the area where the range started then select the end point which will be the last candle before it broke the
06:36
Speaker A
You might wonder why don't we use the current day session volume since the trading day has not yet ended and is constantly changing in real time. This can cause fake signals or flaws when looking at volume, so it's best to exclude the current day.
06:56
Speaker A
swing high of the range then select the lowest low that's most relevant to the current market price as we can see the point of control is around the same area as the 618 or the golden FIB retracement level so once price comes back to this we'll want to enter after we get a good
07:16
Speaker A
Let's go over an example. In this one, we'll be using the fixed range volume profile. In front of us is a market that previously was in an uptrend, but then it began breaking down, making lower highs and lower lows, signaling a downtrend. You may notice how it was ranging for a while before it broke down. We'll mark this range out with our volume profile in order to identify the point of control.
07:33
Speaker A
complex at first but with enough time it can become your Edge in trading hopefully this video helped you understand it a little bit if you know another Trader that might benefit from watching please share it with them thanks for watching make sure to smash that like button
07:49
Speaker A
So, first select the area where the range started, then select the endpoint, which will be the last candle before it broke the range. Here, we can see the volume profile of this range. The area that we'll have to keep an eye on is the point of control. Remember to look for confluence always. Never take one signal or tool for granted.
Topics:volume profiletrading toolsanchored volume profilefixed range volume profilesession volume profilepoint of controlvalue areahigh volume nodeslow volume nodesTradingView

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