Trading Strategy: Volume Profile

Profile is a type of advanced order flow analysis that shows the volume distribution at different prices over time. Profile, which appears as a horizontal histogram on a chart, can identify important price levels such as support and resistance.

It is a tool to organize data. It helps to see trends and ranges in a clear picture. The market profile shows where market participants agreed on the fair value of the underlying asset. It also shows where the underlying asset was overvalued or undervalued. Does it show how much volume was traded at each tick? How much time does the market spend at each…