#04 - Chart Volume Profile Range

Discription -

The Volume Profile (VP) is a 2nd dimensional horizontal view of the market price and volume difference at each tick or set tick range

VP calculates and displays the volume difference for each tick range. Meaning, it takes how many contracts were bought at the ask, versus sold at the bid price and totals the differences plus or negative.

It displays the differences in cyan for positive and red for negative colors and plots the numeral text differences for each lot size.

The Range Tick Size measures the volume difference as a whole rather than just 1 tick. It combines the calculation into into set tick ranges. 4 ticks would be 1 full point in the ES Sp500 for example. Much more effective is seeing true momentum.

You can set up to 3 lot sizes. We defaulted 1, 25 and 100 lots.  The larger the lot size, the darker the color.

When set to 25, you will only profile 25 lots and more. The 100 lots is the same; profile 100 lots of more. You can see the small to larger traders all on the same line now with different faded colors. 

Chart Volume Profile (VP)

Chart -

In the inputs for Volume Profile, you have 4 choices:

  1. Tick Range to Profile
  2. The min lot size which would profile this lot size and more. This shows up as the least faded color
  3. The medium lot size. This will show up as the medium faded color.
  4. The largest lot size or bigger and will show up the darkest faded color.
We show the net difference on the right which can be turned on or off.,
The format is   ###/##/# meaning the large lot difference will be on left, medium in the middle and smallest lot size is on the right. The same format as the shaded colors.
CycleTrader Chart Volume Profile
CycleTrader Chart Volume Profile

Add and many Tick Ranges Profiles as you wish. We normally have a 4, 12, 24 and 48 in the ES market.

Use Volume to find moves like these

About the inputs -

1. Tick Range = The number of ticks you want to use for total calculations. For example, if you put in 12 for tick range in the ES Sp500, this would be 3 full points.
2 and 2a. Lot size. This is the minimum lot size we use in the calculation. Opacity is the shaded area. The lower the Opacity number is, the more shaded the color is.
3, 3a, 4 and 4a are both on/off options to show larger lot sizes.We darken the color the higher the number to be able to see it better.
5a and 6b are the up and down colors, Cyan Up, Red Down.
6 is the outline around the color
7. Is an on/off option to show all the calculated values on the left sides of the lines.

Inputs -

CycleTrader Chart Volume Profiles
CycleTrader Chart Volume Profiles

More Input Information -

Note – There are 4 main features

1. Choose any tick range, rather than every tick. See the bigger picture the higher the tick range.

2. Choose up to 3 lot sizes to profile. See the hands of smaller to larger traders profiled together.

3. See the difference of the number of buyers versus the total volume. More effective methodology.

4. See true resistance, support and trends in a new a horizontal pattern.

How to trade the Volume Profile (VP)?

There are a number of ways to look at it. We found that when a small tick range is selected, you will see blotches of tradings selling into holes and buying at the highs.

When you increase the size of the tick range, it averages out the real players and bad traders and will turn the color of the trend.As it enters the range of cyan for example, you can go long. If the color starts to change, then you can start to look at shorts.

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