Day Trading Strategies Using Volume Profile
Volume Profile is a powerful trading tool that reveals where the most trading activity occurs at specific price levels, transforming how futures traders...
Volume Profile is a powerful trading tool that reveals where the most trading activity occurs at specific price levels, transforming how futures traders analyze market structure. Unlike traditional volume indicators that measure activity over time, Volume Profile maps volume across price levels, providing a clearer picture of institutional activity and market equilibrium. This guide will help you leverage Volume Profile for high-probability day trading setups in futures markets. Key fact: Professional futures traders using Volume Profile achieve 70-75% win rates when trading mean reversion back to the Point of Control (POC) in trending markets, according to a 2024 study by FuturesHive. Volume Profile is a horizontal histogram plotted on the price axis of a chart that displays the total volume traded at each specific price level during a defined period. Unlike traditional volume bars that show volume over time intervals, Volume Profile reveals where market participants actually transacted.