Video Transcript:
If you are using the Volume Profile in TradingView with its default settings, then you are missing quite a lot of important information. That’s why in today’s video I want to show you how to set up the Volume Profile in TradingView properly. If you want to use the Volume Profile in TradingView, you first need to purchase their plan. The Essential one is enough. It’s quite a reasonable price and it will allow you to use their Volume Profile, as you can see here. Let me now go to TradingView and show you how to set it up properly. The first Volume Profile I want to show you is called Fixed Range Volume Profile. It’s my most favorite Volume Profile in TradingView. You click Indicators and type Fixed Range Volume Profile. As you can see, I already have it in my favorites. If you click the star icon, it will add it to your favorites and you’ll be able to find it there among your favorite indicators. I also recommend clicking the button on the left side of your screen and using the small arrow to mark it as a favorite there as well. Then you can access it directly from the hot bar, which is very handy. Now click the Volume Profile and drag it over the area in the chart. The reason this is my favorite Volume Profile in TradingView is that you can move it around the chart and it will show you the volumes in the exact area you are interested in. Let me now show you how to set it up properly. Click the indicator, right-click it, and go to Settings. The first setting should be Number of Rows. The very important setting maybe the most important in this whole video is Row Size. I have it set to 1,000. By default, it is about 100. If you set it to 100, the profile becomes much less detailed. If you set it to 10, it becomes even more obvious. That’s why I use 1,000 it keeps the profile detailed. Another default setting is the Up/Down Volume scheme with two colors. It is supposed to show where buyers and sellers were active. In reality, there is no reliable way to tell that from these colors. It only makes the profile look fancy but adds no real value. That’s why I use Total Volume instead. The Value Area can stay at 70 or 68 it doesn’t matter much. There is also a useful setting called Extend Right. When you enable it, the profile extends to the right side of the chart and keeps updating as price moves. That means you don’t need to keep moving the profile manually. If you only want to analyze a specific area, then keep this turned off. In the Style section, you can adjust colors and lines. I recommend keeping the Point of Control line enabled. That is the red line showing where the heaviest volume was traded. It’s very useful. You can also enable Value Area High and Value Area Low lines. I don’t use value areas in my trading, so I keep them off, but traders who use value areas should keep them on. That’s how I set up the Fixed Range Volume Profile. The next profile I want to show you is the Periodic Volume Profile. Go to Indicators and search for Periodic Volume Profile, then mark it as a favorite and add it to the chart. By default, it prints on every candle, which looks messy, but we will change that. Go to Settings → Inputs and change the period. I prefer the weekly period. It shows how volume was distributed during the whole week and gives you the bigger picture, which is very important for Volume Profile trading. Set Volume to Total again to remove the useless color split. Set Rows Layout to Number of Rows and use a large Row Size so the profile is detailed. A useful feature is extending the Point of Control line forward until it gets tested. This makes it easy to see whether the heaviest weekly volume level was already revisited or not. You can also extend the value area lines if you use them. If you don’t want weekly profiles, you can switch the period to daily and see daily distributions instead. In the Style section, you can again adjust colors. Keep the Point of Control line enabled and value areas depending on your strategy. You can also save these settings as default so you don’t need to adjust them every time. This is how I recommend using the TradingView Volume Profile. It is much more detailed and much more useful than the default setup.
If you want to learn how to trade with Volume Profile and learn my strategies from A to Z, visit my website and check the trading courses and custom indicators. Thanks for watching. I hope the video was helpful. See you next time, and happy trading.
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