Setting Up Your TradingView Chart with Volume Profiles

Introduction:

"seek the riches of wisdom over gold, for they do not tarnish with time."

Volume Profile is an essential tool for not only traders but the average person, looking to understand market activity at various price levels. Whether you're trading stocks, forex, or cryptocurrencies, setting up your chart with the right volume profile indicators can give you insights into where significant trading activity has occurred. This article will guide you through setting up a chart on TradingView, similar to mine, and explain key terms you'll encounter.

Step 1: Accessing TradingView

First, ensure you have a TradingView account. You must be on a paid plan, you'll have access to advanced indicators like the Periodic Volume Profile (PVP) which is crucial for this setup.

Step 2: Chart Setup

Navigate to the asset you wish to analyze. For this example, let's use $BTC
Set your chart to a timeframe that suits your trading style. Daily, weekly, or Monthly. In future articles, I help you navigate which one is best for your personality.

Step 3: Adding Volume Profile Indicators

Click on the "Indicators" button at the top of the chart interface.
Search for "Periodic Volume Profile". (PVP) This indicator shows volume distribution for the particular range you want to view on the chart. I have 3. One set for daily, one set for weekly, and one for monthly. I turn off the two I'm not using. In future articles ill tell you how I use smaller timeframes to build me a bias for future price. I call it reading the lexicon of the market maker.

Key Terms Explained:

Value Area (VA): This represents the range where a specified percentage (commonly 70%) of the total volume traded occurred during the session. IE Daily- Weekly- Monthly Value Area High (VAH): The highest price level within the Value Area, often seen as a potential resistance. AKA Premium Pricing Value Area Low (VAL): The lowest price level within the Value Area, generally considered potential support. AKA Discount Pricing
Point of Control (POC): The price level with the highest trading volume within the period analyzed. This is where the market has found the most agreement on price.
Naked Point of Control (NPOC): Refers to a POC from a previous period that has not been retested since its establishment. These can act as significant levels where price might react due to unfulfilled orders or interest. This is a beacon to future price...I call it a yellow brick in the road...

Step 4: Customization

Adjust the appearance of each indicator for clarity: Change colors to distinguish between different elements like POC, VAH, VAL, and NPOC. Adjust opacity or line thickness for better visibility.

Step 5: Analyzing the Data

Support and Resistance: Use VAH and VAL to identify where the price might bounce or reverse. In future articles ill provide you my rule sets and trading principles for this.
Price Action: Look for price reactions at POC or NPOC. These levels often indicate where significant buying or selling pressure existed.
Theory: I will discuss this in future articles on how I have a ruleset to help me determine a bias.

Tips for Using Volume Profiles:

Combining with Other Indicators: Volume profiles work excellently with other indicators like Moving Averages or VWAP to confirm trends or reversals.

Conclusion: By setting up your TradingView chart with volume profiles as described, you can gain a deeper understanding of market dynamics. Remember, while these tools are powerful, they should be used in conjunction with other analysis methods to form a comprehensive trading strategy. Keep practicing, and you'll find that terms like VAL, VAH, POC, and NPOC become second nature in your trading vocabulary.