Quantity Profile is a useful buying and selling indicator that exhibits you the value level at which essentially the most quantity has been executed. On this video, I am going to present you learn how to add it to your TradingView chart, the way it works and once you would possibly wish to use it in buying and selling.
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Getting Began with Quantity Profile
What’s up merchants, that is Hugh and on this video I’ll present you learn how to put Quantity Profile onto your charts and why you would possibly wish to use it.
Okay, so that is TradingView. I am trying on the different display screen, so forgive me if I am not trying instantly at you. Right here is my Quantity Profile indicator and this comes with TradingView. I believe it is solely obtainable with the paid model, nevertheless it’s a extremely useful instrument as a result of you’ll be able to see the place essentially the most quantity has occurred on a chart.
And that is necessary data since you wish to know the place you would possibly run into some points in the event you’re trying on the charts, what value factors you are going to run into these points and the place the shopping for or the promoting strain could be coming from.
Quantity Profile vs Common Quantity
So let’s check out some examples. Initially, I’ve put the common quantity down right here on the backside. As you’ll be able to see, it may be just a little powerful to learn this as a result of it’s important to go candle by candle and it’s important to actually dig into what every candle is telling you.
Whereas Quantity Profile is only one line and you may as well make it a number of strains, like some folks do. So you’ll be able to present Quantity Profile like this and it will present you the degrees at which there was essentially the most quantity.
So I have never set it in order that it exhibits me the quantity on the candles which might be solely on the candles which might be displayed proper now. In order you’ll be able to see, there is a bunch of quantity right here and that is the best quantity stage.
There is a bunch of right here. After which down right here round this stage is the place you are going to see essentially the most quantity on this space. So that is actually helpful data. I solely take a look at the best quantity stage as a result of I do not need my charts cluttered up with all this different stuff.
Nevertheless it’s helpful to see the quantity in any respect ranges. And as you’ll be able to see, this stage is the second highest quantity stage on this chart. So there is a good likelihood that there is going to be a turning level.
How Do You Use Quantity Profile to Commerce?
I do not use it as a rule particularly per se, however I do use it as a suggestion to point out me the place value would possibly flip or the place the revenue targets could be. So for instance, with this Quantity Profile proper now, I am truly on the lookout for a brief right here.
If I do find yourself taking a brief, then I’ll search for this Quantity Profile stage because the, as properly just a little bit above it. However I’ll sit that as my restrict as to how far value might go.
So I am going to most likely set my take revenue just a little bit increased than that. And in case you are on the lookout for one thing that is above the extent or under stage, let’s examine if I’ve an instance right here. So for instance, if I transfer this chart backwards, it’ll present me the change in Quantity Profile stage.
Okay, so right here, there is a huge Quantity Profile stage right here. So if, in the event you had been on the lookout for an extended proper right here, it actually helps to know that there was quite a lot of quantity under your stage. So you’ve gotten some confidence to take the commerce as a result of quite a lot of trades have occurred right here, so there is a good likelihood that it will push it out. Proper? On the flip aspect, in the event you see a quantity stage actually, actually near the place you wish to take a commerce, for instance, let’s examine if we are able to discover one right here. Let’s scroll again and see, okay, this is a, I believe it is a good instance proper right here.
If the Quantity Profile is precisely at your stage or possibly just a little bit under, then you definitely could be in bother. When you wished to take a brief right here and in the event you had the best Quantity Profile stage proper there, then which may inform you, possibly you should not be taking that commerce as a result of you are going to run right into a bunch of quantity and also you by no means know what is going on to occur at that time.
So if we put the profile again on there, we are able to see that sure, that’s the highest quantity stage adopted by this stage down right here. It may not be a great commerce stage, however once more, it is only a tips. So it is as much as you if you wish to truly take the commerce or not.
If I scroll again just a little bit extra, like I mentioned, does it assist? It helps to zoom out so you may as well see the important thing ranges round value and once you zoom out and in like this, you will get a good suggestion of the place the massive quantity is and you may commerce accordingly.
Conclusion
So attempt it out, backtest it with Bar Replay and see the way it works for you. I simply use it as a suggestion, however possibly you need to use it as a particular coaching program or a buying and selling system.
All proper, thanks for watching.
To study extra about TradingView’s Quantity Profile indicator go right here.
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