Original subtitles

The lowest representation of the volume profile is when we look at the volume

distribution within a candlestick.

More advanced platforms are usually used.

In fact, this particular chart was obtained from NinjaTrader, not

It is a type of profile and configuration designed for the scalping

-day trader using very low timeframes.

The information it gives us on a conceptual level is exactly the same.

Depending on the configuration we set, The distribution can show us the value

zone, the VPOC, and other trading levels.

In this case, it only shows us the volume according to the price level in

VPOC, identified as a yellow dot.

This data is the most important because, if analyzed well, it can give us

important information about what the market is likely to do.

For example, we need to understand that all price reversals follow the same

pattern regardless of the duration of the reversal.

And this pattern always consists of three steps, exhaustion, absorption, and

initiative. To reverse a bearish movement, the lack of interest or

sellers to continue selling will converge.

Absorption, which will be the first buying entry by large traders passively,

the aggressiveness or initiative of buyers that will push the price upward.

Now, using an intra -bar volume profile will greatly facilitate the

identification of this type of reversal patterns, if we have previously learned

price and volume analysis and, in particular, the application of the law

effort and results.

While it is true that TradingView does not yet have this type of advanced

charts, we can use an indicator that will allow us to analyze the same

information. First, click on the Indicators tab in the top menu.

Secondly, we type the name of the indicator in the search engine, which is

called Periodic Volume Profile, and the indicator which is also owned by the

platform, will appear.

Click on it and it will be added to the chart.

It is important that the indicator configuration is set to one bar period.

This drop -down allows us to select other time frames, but for the use we

to make, we need to select the bar period.

The volume of the value area is not very important because we will not analyze

the value area itself.

We will mainly use the VPOC of the candlestick.

and the rest of the configuration will be as shown.

And that's how this indicator would be visualized.

It's not as visual as the other one, but the key information, where most of the

volume is, we can analyze.

It allows us to identify the market rotation pattern, mainly absorption and

initiative, which are the two most common and easily identified stages.

We will come back to these charts later and explain the rotation action as a

whole in detail.

The key to this type of intra -bar profile is the location of the high

nodes, especially the VPOC.

When a bullish candlestick closes on the highs and leaves the VPOC in the upper

third, it suggests a passive sell entry.

The price has reached a point where it is now attractive for sellers to start

positioning. These types of signals are early signs of anticipation of the turn.

Conversely, in bearish movements, when we see the VPOC at the bottom of the

candlestick, it indicates that there is likely to be an absorption that could

precede a reversal to the upside.

On the other hand, if we want to identify the aggressiveness on one side,

initiative will generally appear in favor of the movement and give rise to

That is to say, for the selling initiative, it is ideal to identify a

candlestick that indicates weakness and that the VPOC is in the upper third of

the candlestick. And conversely, for the buy initiative, a candlestick that

indicates strength, and the VPOC in the lower third.

The reading of this behavior is that if we identify the appearance of the big

traders mainly in the VPOC, the fact that this action also has continuity to

that side suggests that there is really a commitment to move the price in that

direction. It is a classic effort -result reading where we look for price

and volume to be in harmony.