Visible Range Volume Profile: Advanced Tutorial

welcome to the third video in our video series about yep you guessed it volume profiles now in the first video we talked about fixed range volume profiles in the second video we covered session volume volume profiles including session volume hd today's video is all about the visible range tool in your volume profile menu so the way we start off every video is we go through the basics including how to add a volume profile to your chart then we dive into the settings and just every aspect we can think of that will help you the investor or the trader get started so let's start from the very beginning to add a volume profile to your chart you're going to head up to where it says indicators and you're going to click now once you've clicked to open this indicators menu there is a volume profile button here which you want to have selected and then you have these four volume profiles to choose from let's go ahead because this video is about visible range let's click that and you see how fast it's been added to the chart it's right here so what is visible range volume profile and why is it different from the other volume profiles well we're just going to move our chart around and as we move it around watch these volume bars so first we're going to zoom out instantly recalculated we're going to zoom out some more instantly recalculated now we're going to zoom in instantly recalculated so as you can see the visible range volume profile recalculates with you depending on the chart you're looking at it works across all time frames so we can even go down to say a 30 minute chart and it will now instantly recalculate it can work across all asset classes we could go to apple which is a stock we could go to gc which are gold futures and it calculates or we could hang out in the world of crypto and there it goes 30 minutes one hour it will recalculate with you as you go exploring and doing your research on the chart but what is it showing you why is it recalculating let us explain every time you zoom in or out of your chart or change the symbol or change the time frame this visible range volume profile is starting from the most recent point on the chart to the most recent trading action and then it's calculating all of the information in this view all of it all of the for trading volume price action and then it is instantly displaced information to you on the right side as a volume profile so what this means on this chart is starting on july 30th 2021 and going all the way to september 15 2021 these are the price levels that had the most trading volume so it looks like 70 to 72 dollars is currently the point of control the area where the most trading volume happened that's this red line this is the point of control we'll go through this later also the yellow and the blue bars mean up volume and down volume you combine them to get the total volume at a specific price level and that is the basics of visible range so why don't we once again just dive into some other assets just to give you a very good feel for how this looks and how it works and as we do in all videos in this video series we discuss the key differences between the volume profile and the volume remember volume just shows you how much volume happened on a specific day so this bar represents one day this green candle here this red candle represents another day we can see it says september 7th september 3rd september 2nd september 1st these are bars that represent full days and this volume tells you how much trading volume occurred in that day the difference here is a volume profile recalculates that and tells you how much trading volume occurred at a specific price so we're going to go ahead and hide the regular volume tool and just talk about this a little more this is how much trading volume occurred at a specific price starting from this date here all the way to here we can see what price levels had the most volume and the point of control tells you the price level that had the most volume that's this red line it's called the point of control poc so now that we've given you the basics of the visible range and why it's so effective we'll dive into the settings to show you some more ways you can use this tool remember the visible range is really good if you are quickly breezing through symbols if you like to zoom out to get a feel for what price levels had the most volume zoom back in to see what price levels had the most volume if you are moving fast and doing research across different symbols and time frames the visible range is a tool you just will want open all the time so you always can see this level of information and how price and volume relate on the chart so now to open the settings you can just double click and this is your visible range volume profile settings you can also right click and click settings and here you are now as we do in every video in this series we walk you through the settings the reason why we do that in this whole video series is because you as the trader investor need to understand the settings every trader or investor is different and in this settings menu you can customize this tool to work for you you are building a layout a process you are understanding the mechanics so that you can put this tool to work that either fits your time frame your goals or even just your design how do you want your chart to look do you want this yellow and blue maybe you want different colors well you can change that okay let's get started with inputs the first thing is rows layout this is going to define the way these rows are calculated and shown so number of rows implies you only want you want to see this price information compressed into a certain number of rows the default's 24. so if you count these rows there'll be 24 here it is compressing them into 24 rows watch what happens if we decide we want more granular look and we do 100 rows now it's 100 rows number of rows 100 that are showing that are now breaking down what price levels had the most trading volume ticks is the same thing but instead you're saying how many ticks per row so how many trading ticks are in a simple or in a row and you'll kind of notice that this works actually a little differently than number of rows because if you do say 10 ticks per row it'll actually get smaller because it's counting each tick so 10 ticks new row 10 ticks new row think of it like that number of rows if you do 10 it's actually just building out these bars to show all of this price information into just 10 bars so it's going to be a little larger but if we do 100 well now we're doing all of this price information has to be shown in 100 bars or rows we should say rows so this is totally up to you ticks per row are pr is probably a little more advanced number of rows is away where you could probably visualize the volume just a little better and it might fit your style and what you're looking to do because it will smooth it out and potentially make more sense so for the sake of this video let's do let's just do 15 rows we just want to see 15 bars that show us how much volume happened in this range in this price range how much volume next up is volume up or down or total this is a question we are asked all the time if you notice when we select total it's now all one color that's because we are now saying in these 15 rows just show us the total volume so it's total volume but if you select up or down which is the default it'll now split the total volume into up volume and down volume and you can define that color here in the style menu up volume down volume value area value area down and you can change these colors to fit your look or feel the reason why up or down up down volume is the default and not total is because up down volume attempts to split the volume based on the number of trades that traded lower than the previous trade or higher than the previous trade and this can give you maybe a sense of are there more buyers than sellers more sellers than buyers is the trend down is the trend up uh is there pressure maybe is there pressure building up at these price levels it can probably just give you a little more insight into that because now you're splitting up the volume profile in that way but if you don't care if you just want to see volume in its simplest form possible just go ahead and click total and now you'll just get a straight volume bar here for the sake of this video we'll keep it up down because that is the default process next up is value area volume this is really important because the value area is the area that you are defining personally that means the most to you and you can almost think of this as a percentage so if this is at 100 you'll notice that you can see every single volume profile bar as clear as the last so it's almost like saying i want to see 100 percent this value area volume the whole area means a lot to me but if you were to change to say just to 10 think of it as 10 well look how much now kind of fades out of your view and now it focuses on this one point of control area it's essentially saying i just want to focus on this value area this is the most important to me you could change that to 20 let's see 30 you see now another bar lights up if we did 50 three bars light up for the sake of this video because our row size is set to 15 we will do 80. and now you can see we kind of want to see 80 percent of the value area where is most of the trading volume happening we don't care too much if anything's happening outside of this region so you can sort of shade that in we want to focus on this 80 percent area you could think of it like that now let's go to style style is where you customize the look and feel decide what information you want to see this is obviously the volume profile checkbox so you could choose to hide it maybe if you want we're making quick adjustments but let's turn it back on you could show the value so we'll actually show the values of the volume profile on the chart your up volume and your down volume then of course there is the width percentage of box what does that mean well as we explained in previous videos watch what happens when we go to 100 it now goes all the way or almost nearly all the way across the chart because what we're saying is how much of the chart do we want this volume profile to take up at its peak so if we go to 10 look how small these bars get if we go to 5 they get smaller so this is totally up to you how do you want it to look it's entirely in your hands it depends on what you're looking to do the design you want etc etc for the sake of this video we're going to do 25. we just want to see a percentage that's about 25 percent of the box we're not looking for these profiles to go across our entire chart next up you can change the placement left you can see now it's on the left side or the right side now this is what we were talking about up volume down volume value area up value area down this whole area is talking about the up volume and down volume and being able to change the color of that as an example we'll change value area up to green and value area down to red these are probably the most obvious ways to think of it red implying down volume green and implying up volume and now as you look you can see see this see the difference this is the this is volume up that was going up volume that was going down and now it's a little easier to see of course we are going to change the colors back to their normal but that is what the color difference means at its core we get so many questions about this it's important for you to remember that that is the key distinction now we do point of control that is this red line shooting across the chart the point of control is where the most volume occurs so this row here is responsible for the most trading volume a price of one hundred and seventy seven nine dollars is one thousand seven hundred and seventy nine dollars has the most volume on this chart in this time frame this red line is now going to shoot across the chart so we don't miss it double click we can choose to hide it or show it we can change its color we can make it a dotted line all possible and up to you additionally you have a developing point of control this is a really important tool let us explain why this tool is so important and this is why the developing point of control shows you the point of control as it changed over time as new information came in so this white line is your point of control today as it stands right now this blue line is where it came from so actually back on march 21st before all of this before this say this was all hot hid you know we can't see this on march 21st the point of control was 1845. see that but new price information came in and it suddenly dropped as more volume happened at these levels and it changed to 1735 then price ran up and you can see the point of control change to 1 1782 and you can see how the point of control developed and changed over time this is so important because you probably want to see where it came from did the point of control does the point of control today lower than where it was in the months prior does that mean the trend is down these are questions you can ask and things that you can study with this tool let's double click to open the settings menu next up is the developing va this is your value area if you remember the value area we selected 80 is sort of saying 80 percent and you can see that we have this you can see the bars clearly here but you can't see them as well up here because it's outside of our value area well this developing value area shows you where it came from so actually back in october it was all the way up in the two thousand dollar level and it's been compressing and shrinking ever since something to think about and actually you can kind of get a sense if you were to go back into other time frames to see how it might look when it was trending upward you can see it was climbing up with price you can see the value area was widening interesting might tell you a little bit more about the trend or the range or just volume in general and how it relates to price so we'll double click again go to style and that is the settings menu for the visible range volume profile remember this is video three where we are walking you through all of these volume profile tools go to indicators volume profile and select the volume profile of your choice now here's what's a good way to end this video we want to tell you about volume profiles well the visible range you can use the visible range just like all the other profiles you can do your research you can dive in to different time ranges time frames you can change your chart to a minute chart you can change your chart to a weekly chart and the volume profile will instantly calculate for you and with you so one way you could use this chart and or this tool in your research process is to speed up the way you study longer time frames and zoom in and out on a chart so we can start to show you an example this is a weekly chart going back to 2016. 1285. so what you could do then in that case is perhaps draw a line here double click show text and say volume profile this is june 2016 since june 2016 point of control okay and now we have this note on our chart and we have two lines in fact we'll change the color to make it a little more clear that this is something different from the actual point of control that's changing with us let's also make it a dashed line so now as you can see we're keeping this that note on our chart see this note down here and how interesting is this as we zoom in the volume profile or the point of control has actually moved up to 1500 so why don't we make another note 1500 let's just say 1500 volume profile poc and this is from april so what we're doing is we're jotting down these notes and as we zoom in preparing either for a trade or something else of that nature we now can kind of start to see these levels let's make sure that we we zoom out here so we can see we can start to see where these levels are and how they matter to us so why would this level matter to us well one example is say you were looking to place a trade well you could start to say price is currently under this area this is the point of control a lot of trading volume happened here we know that this goes back to 2019 this price level at 1500 we know this goes back to 2016. it almost looks like 1200 to 1280 so does it make sense to buy here or should we perhaps be patient and wait for a test at a level that we found to be a little more interesting with more trading volume which might imply more slip less slippage better execution maybe there's more buyers there or maybe there's just more trading volume in general implying that you know price it may act as a magnet and bring price back down there so we'll sit and wait and what we could do is right click on this chart create an alert and we could create this custom alert and then remind ourselves this is a volume profile poc that we found interesting gc1 leave some notes here and you know video tutorial on youtube should we buy this dip a reminder click create and this little clock appears implying that that's the alert we've set and now we sit and wait and if you're on a shorter time frame and you're trying to literally trade on a one minute chart well you could do that too you could try to go into a one minute chart and zoom in and you could kind of see well price is kind of having a hard time clearing this point of control with conviction it's now gone down and you can see it went back into the zone and now it's kind of trending down again so is this something you want to buy it's a question you should ask this is just an example and ways you can think about using these tools would it make more sense perhaps to find a level that's maybe more interesting that has volume or some some activity that's noteworthy now how interesting is that we could say go back to the start of august you can see august and look at that we are going back to august this is august 1. and just by doing this research and watching the volume adjust with us we now see that since august there's a price that looks even more important it's right here 1790. we'll even show you look at this bounced bounced bounced bounce bounced it kind of washed out here but then like a slingshot popped back up so why buy here when it might make more sense to wait for something here you can even see all of this trading activity here now that might be something to pay attention to maybe we should create an alert there if we're looking to make a trade on a smaller time frame so this is just an example of how volume profiles can be used but the point is to take your time to do your research to make sure you understand where volume is don't just buy randomly use the tools available to you dive into the chart and begin your research process we hope that this tutorial helps you get started with our volume profile tools if you are just watching this video and finishing up make sure you watch your other two videos because we show you fixed range session volume session volume hd invisible range these are all videos that should help you develop a better understanding of how to read price and volume but more importantly how to use the tradingview platform that's why we make these videos so you can learn the platform thanks for watching

Channel: TradingView

Views: 64,992

Keywords: TradingView, Charts, Traders, Investors, Trading, Investing, Technical Analysis, Fundamental analysis, Stocks, Forex, Crypto, Options, Futures

Id: i1xjh79XC4U

Length: 24min 4sec (1444 seconds)

Published: Wed Sep 15 2021