Understanding Volume Profile

The Volume Profile provides a graphic representation that is statistically based and provides a method of organizing market data into distributions. As a trading session progresses, the Volume Profile develops based on volume at each price point. This profile provides a graphical representation of volume that can be used to evaluate support and resistance zones. As a trader becomes more aware of specific Volume Profile patterns and setups, it becomes obvious how useful the profile can become at providing traders with a structure with which to trade market behavior.