Volume Profile

What Is Volume Profile Indicator?
Volume Profile indicator (also called Market Profile in some cases) is a handy tool for checking price action on a chart.

One of the first thing that traders mark up when analyzing a chart is support and resistance. Volume Profile can be used for doing that too.

Not only Volume Profile allows you to spot support and resistance levels, it also highlights prices where there was heavy price action in the past.

Knowing that some prices had important activity in the past can significantly help setting up trades, stop-losses, and take-profits for your future trades.

The indicator scans the defined number of previous bars and calculates the volume of activity at each price level.

The result is presented through a vertical histogram chart — the longer the histogram is, the more activity at that price level was.

You can set the indicator to display the volume profile up either to the current, most recent candle, or to some previous date.