Intro to Volume Profile

In his recent webinar, Long-Term Investing with Volume Profile, Trader Dale gave a helpful introduction to the concept of Volume Profile, designed to help traders who may be unfamiliar with the term.

“Volume Profile is a histogram,” he said, “that shows volume at price.”

In other words, Volume Profile is a graph that visually displays the trading volume at specific price points. The wider the Volume Profile, the heavier the volume. This is useful information because it helps to identify the positions of big trading institutions.

Trader Dale explained this concept further by saying “The big trading institutions… have insane amounts of capital, which they need to allocate in the markets.” He continued, “They need to place those insane amounts of money into the market and, through Volume Profile, you can see those areas where those guys are.”

This means that Volume Profile can also show the price levels at which large institutions are trading.

In this short clip, Trader Dale gives a more detailed introduction to Volume Profile and shares why he believes it is better than standard indicators.

If you enjoyed this clip, be sure to watch this other volume profile webinar: Swing Trading with Volume Profile, also hosted by Trader Dale!

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