Volume profiles

SM
Last updated 2 months ago

Volume Profile displays the trading activity over a specific time period at certain price levels.

Volume Profile displays the trading activity over a specific time period at certain price levels. Meaning, it shows what was bought and sold at those current levels, and displays them in a histogram on the side of your chart. Volume Profile allows you to see the zones of maximum trading interest, and as a consequence, the "true" support/resistance levels.

Quantower platform offers four types of Volume profiles:

Step Volume Profile

Step profile displays volume profiles with a certain time step. For example, set the step period to 1 hour, and you will see profiles with uniform hourly steps on the graph. By changing the data types, you will see the distribution of the trading volume, the executed trades, as well as the delta for each hour of the trading session.

You can enable Step Profile through the volume analysis toolbar or their settings.

Here is how you can activate Step Profile in Quantower platform

General settings of step profile

Main settings of Step Volume Profile tool
  • Step period & Step coefficient – determines the step to build the profile. Step period has four types –Minute, Hour, Day, Week.

  • Histogram position – places the profile on the left or right side relative to the starting point.

  • Show totals – this option summarizes the data based on which the profile is built.

Step profile with various data types

Left & Right Volume Profiles

Left and Right volume profile can be placed on the left and right side of the chart respectively. For example, you can set the delta data on one profile, and on the other the total volume for the same period of time. You can combine several profiles that are built on different time periods into one combo profile and put it on left or right chart position.

Quantower allows to place multiple volume profiles with different data types

Custom Volume Profile

Custom profile allows you to create a profile for any time range. For instance, you want to see the distribution of the delta on the flat chart or for the impulse bar. As with other volume analysis tools, you can choose any available data types for display.

Custom volume profile can be applied to any range

After you have placed a custom profile on the chart, a control panel with five options will appear next to it.

Control panel for custom volume profile
  • Dublicate profile with the same range and settings

  • Move profile to the background or foreground

  • Lock current position of the profile. Prohibits the profile movement.

  • Additional settings for selected profile

  • Delete selected profile

Additional settings for custom profile

In addition to the settings for quick management of custom profile, there are additional settings. Let's take a closer look at what you can customize.

Additional settings for custom volume profile