How to Use the Volume Profile Chart
Most traders watch price action and miss the actual agreement between buyers and sellers. A volume profile chart reveals exactly where the market spent ...
Most traders watch price action and miss the actual agreement between buyers and sellers. A volume profile chart reveals exactly where the market spent the most time and traded the highest volume, exposing the true futures key levels before a move happens. Instead of guessing where support might be, you can see the precise price zones where institutions are active. The primary takeaway is that volume profile displays price on the vertical axis against volume on the horizontal, creating a visual map of market value. This approach differs fundamentally from standard volume bars, which show activity over time. According to Wikipedia, the concept originated with J. Peter Steidlmayer at the Chicago Board of Trade (CBOT) around 1959-1985. He sought a method to evaluate market value as it developed within a day. The resulting graphic typically forms a bell shape, with the fattest part in the middle prices and activity trailing off at the extremes. Volume Profile is a charting technique that displays the total volume traded at specific price levels rather than time intervals. It allows traders to visualize where the majority of market activity occurred during a session.