Sections in this article
This is one of the best and most objective forms to detect support and resistance, as well as the areas at which price is most likely to either trend or consolidate. It shows in real time the areas where the most volume has been traded, and thus where speculators have put their stake in the market and their skin in the game.
TC calculates its volume profile profile from heatmaps which are much more granular and detailed. It can sometimes reveal some hidden/iceberg orders. Red and green color in TC’s volume profile show actual buys and sells unlike volume profiles from other charting app where colors represent just a ratio of red and green candles
With the volume profile, price follows three core principles:
- It bounces off or consolidates around the points of control (PoCs) - the peaks in high value nodes
- It avoids or trends rapidly through low volume “wells”, the valleys in low value nodes
- PoCs attract price; “wells” reject it
Current range view
Current range view is default and recommended setting to display Volume profile. It plots Volume profile visualisation related to the current situation on the currently displayed price chart scale. When you zoom/unzoom chart or switch timeframes, your Volume profile visualisation will be always recalculated to the currently plotted area.
Volume Profile for custom range can be generated by clicking on the button next to v_profile settings “fixed”, then click and drag to select the range of chart area. Selection tool can be also activated with hotkey X.
Sessions view splits Volume profiles to sessions. Simple type session value and this number will be multiplicator of current timeframe value, that means for example if you have 5 min time frame and want to see sessions divided by every hour (60 minutes), just write number 12.
Delta Volume Profile
Difference of Buy and Sell volume at each price level shown as Volume Profile. Turn on Delta Volume Profile in the bottom settings panel, button “delta”. Learn more about Delta Volume Profile
V = toggle Volume Profile
X = fixed range Volume Profile
Looks for high volume nodes as areas of support and resistance..
Price will typically spend little time at low volume nodes, they will either function as a strong bounce area or tear through with little support/resistance.