The Volume Profile is a fantastic tool to analyze price spots of high and low volume where you could potentially put your entry/exit orders. You need a paid account to use Volume Profile ^^!
VP Term Definitions:
High volume node (HVN). Point in volume profile where there is significantly higher volume than average.
Low volume node (LVN). Point in volume profile where there is significantly lower volume than average.
Value Area (VA): Where 70% of the volume is located in the volume profile. Determined from surrounding nodes of POC.
[*Point of control (POC). Highest volume node on the volume profile. Useful for using as support/resistance and an important retest point.
VP Strategy Rules:
- If price is consolidating: - Value area will be located in the middle of the Volume Profile - Price will bounce between HVN's and LVN's - If price is trending upward: - Value area will be located on the bottom of the Volume Profile - Price will likely retrace to Value Area High - If price is trending downward: - Value area will be located on the top of the Volume Profile - Price will likely retrace to the Value Area Low