The differences that exist amongst them are the way they appear on the chart and the ease of access to volume profile on the precise time period you want to view. There is not so much difference in the way they all operate. There are three different kinds of volume profile used in trading. Traders can understand and use the volume profile indicator as one of the important tools among all their technical analysis tools. The total buy is then divided, and volumes sold representing it on a histogram chart. The volume profile bars are created by getting total volume traded at a price, in a given time. The volume profile is usually located at the right side of the chart beside the price levels. The more the volume trades at a given level, the bigger the profile becomes. It draws by using horizontal lines to form a histogram. The volume profile can come in any shape depending on the distribution of volumes. A security is active or liquid when volumes are high. As a result, it can also measure the liquidity of security. Volume indicates the amount of transactions that carried out. Volume, also referred to as volume of trade, gives the total number of shares or stocks traded for a specific security. Some people believe that volume profile analysis provides traders with an “unfair” advantage as a result of market context and that institutions and banks use such strategies. Traders focus on the regions where a reversal could occur with volume profile. Volume Profile makes use of previous traded volume and all the strategies and plans are brought from historical data. It shows the traded volume amount of an asset over a specified period, at certain price levels. Volume Profile is an advanced charting study and indicator. 8 Conclusion What is the Volume Profile indicator?
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