How to Trade with Volume Profile on Tradingview

CME_MINI:MNQ1!   Micro E-mini Nasdaq-100 Index Futures
This is the opinion of Optimus Futures. Past Performance is not indicative of future results.

Synopsis: Volume profiles offer a unique way to look inside market action. Today’s idea looks for a fade setup using low volume movements into low volume nodes.

This strategy adds a unique dimension for futures day traders outside of what we’re typically taught about volume profiles.

Volume profiles are horizontal histogram (bar) charts that display the total volume at each price level. This shouldn’t be confused with market profiles which display the amount of time spent at each price level.

Using this information, we can identify high and low volume areas as well as define a statistical range where most of the volume occurs.

Our idea below is an original trading method that can be used for scalping or short-term swing trades.

Idea: The Low Volume Fade

As we noted earlier, volume profiles show how many contracts or shares trade at a given price for a specified period.

One way to take advantage of that is looking for setups where price climbs on low volume into a premium or discount low volume node.

Think of it as a volume deja vu.

The idea is that a low volume node already proved to be a spot traders weren’t interested in, causing a reversal.

So, if we see low volume coming into that same spot again, we can look for a similar occurrence.

In the CME Group Micro E-mini Nasdaq 100 futures contract chart below, you can see the day’s volume profile and price action.

What you’ll notice is that volume fell off quickly near $16,110. That also happens to be a former breakdown area.

Taking these pieces of information together, we can formulate a trade that fades the move, or buys the CME Group Micro E-mini Nasdaq 100 futures, looking for a push back towards the high volume nodes and value area

You can see what a volume profile looks like on TradingView here.

The strategy above is part of our post on Volume Profile Trading. Read the full article here.

Optimus Futures customers get access to the futures markets via TradingView for an integrated brokerage & platform solution and stress-free trading experience. See our TradingView Broker Profile for more.

There is a substantial risk of loss in futures trading. Past Performance is not indicative of future results.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.