Volume Profile trading Strategy

#31
vishnux

Could you please share your thoughts on the below observations and how you trade them, I am trying to learn Volume profile
Hi , never used volume profile in amibroker, is that nifty futures ? , first make sure , they draw volume profile based on tick by tick and not by minute candles (for more accuracy)

Next part you are telling is VAH and VAL , yes this also acts as support / resistance .But what you need is developing value area lines , so u can see what happened in past.

Also POC lines acts as support resistance , see below example in USOIL.Note this is just for scalping where you can get 10 to 20 points in crudeoil.If you want to go for long term , combine with fibonacci retracements , channels etc.

Screenshot 2019-05-11 at 3.47.30 PM.png
 
#34
How different is it from the volume profile provided by Zerodha.
View attachment 34811
The Zerodha volume profile lacks in some of the critical areas. It does not address the following:
1. Identification of the all important Point of Control POC
2. Identification of all important Value Area.
3. Does not enable you to view profiles by sessions.

In short, the usability of Volume Profile charts in Zerodha provided by ChartIQ is rather limited.

A volume profile shoud have all the parts as below to identify support and resistance accurately

 
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