VOLUME PROFILE - playing with Value Area
The original market profile was developed mainly using 30 minute intraday charts.
However, I find that volume profile is very helpful in shorter timeframes, though I cannot post them here as ideas (though lower down I will as a comment with snapshot).
Here I have changed the Value Area from the default 70 to 38.2, which I find creates a channel around the POC and often is very helpful at showing breakout areas. Generally speaking, the shorter the time period of the chart, the tighter this band can be, though I prefer Fibs. For the 30 min I would use the 61.8, though to be honest I tend not to use the Value Area much when it is that fat.
Anyway, that is the idea: try using a tighter Value Area with a shorter time-frame chart.
However, I find that volume profile is very helpful in shorter timeframes, though I cannot post them here as ideas (though lower down I will as a comment with snapshot).
Here I have changed the Value Area from the default 70 to 38.2, which I find creates a channel around the POC and often is very helpful at showing breakout areas. Generally speaking, the shorter the time period of the chart, the tighter this band can be, though I prefer Fibs. For the 30 min I would use the 61.8, though to be honest I tend not to use the Value Area much when it is that fat.
Anyway, that is the idea: try using a tighter Value Area with a shorter time-frame chart.
Disclaimer
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.