Thanks for explanation, we need to consider only closing price only right, today it went to 144 during intra day, those are considered as noise , is that fair assumption
apaqu
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@Siva12380, I don't really think of it as noise and signals. I just use the profile to give me context. It simply tells me certain price areas that the most participants have interacted at. When prices exit or return to these value areas, the boundaries of the value areas tend to give me good risk levels.
miguelsique
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which indicator is that? I have never used it before. can you explain what it is briefly?
apaqu
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@miguelsique, it's called Volume Profile. It shows volume by price instead of by time. The more heavily traded prices can be considered 'value' because it is where the most buyers and sellers agreed that the price was fair enough to transact at. You'll often see price skip through low volume prices and go back to high volume prices until the auction participants can establish where 'value' is now. It's quite a powerful tool for analyzing the context of a market as a whole. The best thing about the profile is that it works the same on every market. Forex can be tricky, though, because there is no single exchange gathering volume data so you'll see different profiles on different brokers, but they'll often be pretty similar for the most part.