VPVR (Volume Profile Visible Range) is an indicator that reveals price points with the most trade volume, within the current visible range on your chart.
This indicator can be applied for both day traders and swing traders, as it will provide you with price areas of significant liquidity on both high and low time frames.
By using these areas of liquidity provided by VPVR, you can identify price areas of support and resistance that other traders might miss.
VPVR (Volume Profile Visible Range) is an indicator that reveals price points with the most trade volume, within the current visible range on your chart.
This indicator can be applied for both day traders and swing traders, as it will provide you with price areas of significant liquidity on both high and low time frames.
By using these areas of liquidity provided by VPVR, you can identify price areas of support and resistance that other traders might miss.
Volume is arguably one of the most valuable insights to have for making a successful trader.
Your trading ideas will become even more powerful when you combine volume with confluences such as; horizontal levels and Fibonacci.
NOTE: VPVR is not available on the free version of Tradingview.
Key Points of the Lesson
UTILITY
Useful to identify the volume that has been transacted horizontally.
Confirm ranges with volume.
Define boundaries for the auctioning process.
IMPLEMENTATION
Volume Profile Visible Range on Tradingview ⇒ Row size 188, Value Area Volume 68 or 70.
3 key components:
Value Area High (VAH) ⇒ above fair value, look for shorts.
Value Area Low (VAL) ⇒ below fair value, look for longs.
Point of Control (POC) ⇒ area with the highest amount of volume horizontally ⇒ fair value, no new trading position.
Areas can be treated as support/resistance areas.
PRACTICAL EXAMPLE
TIPS & TRICKS
Two types of auctions:
Ranging => sideways price action, 80% of the time.
Trending ⇒ a series of ranges breaking upwards/downwards continuously, 20% of the time.
Realizing profits is paramount.
Context is very important.
Large, higher time frame ranges are stronger.
Traders caught offside often exit at break-even, if possible.
Monitor order flow as the range progresses.
Measure the speed of the rotations, the momentum and look for divergences.
Profile merging for similar ranges.
TAKE HOME MESSAGE
Identify ranges with volume horizontally.
VAH, VAL and POC are key areas.
Monitor the context and check order flow in the range.