How I use Volume Profiles

In this post I will cover the following:
 
- ranges
- trending move volume profiles
- high/low volume nodes

Some other nuances before we get started, here are my volume profile settings on Tradingview:

Ranges 

Where do ranges form?

- Typically after a large volatile move (up or down) you can then anticipate ranges forming and thus start pulling a volume profile for the range early on rather than after tonnes of touch points.

Ranges [2]

- deviations and range rotations typically occur into low volume nodes (discussed in detail later within this thread) - revisiting previous range volume profiles (for the first time) poc,hvns etc all remain relevant and are good poi's when returning to that range.

Trending moves Pulling from start to finish of a trend:

- Gain an idea as to where people are positioned within a current trend

Example: - If poc or hvn of current uptrend is lost then that could indicate trend weakness and start to complete trend reversal

Trending moves [2]:

Within trending moves, HVNs and POCs are areas in which new positions could be built up.

In an uptrend, I would dive into the HVNs and POCs to see if new longs have opened within those sections. Those positions (if any) want to defend those zones.

Low Volume Nodes (LVN):

Significant lack of volume, often aligning with single prints.

In trending environment the first touch into LVN on a retrace is typically a good zone to long or short for trend continuation, especially in confluence with series of highs/lows (liquidity).

HVNs & POCs I like to place emphasis on HVNs in a similar way that I would to POCs, they can have similar importance. I don't solely trade from HVNs/POCs, they can be significant if they align with other key levels like liquidity zones before price hits. These form a daily poi

Hope you found this valuable, if you do have any questions, don’t hesitate to DM me on 𝕏 @Luckshuryy

IMPORTANT - I will be soon uploading more Trade breakdowns to this newsletter and posting more frequently, so stay tuned for much more on orderflow and trade management details to come.