Trader Dale Volume Profile
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<strong>Volume</strong> <strong>Profile</strong><br />
“P-profile“<br />
Its shape is similar to a letter "P." It is formed when there are aggressive buyers and weak<br />
sellers. If you look at price chart you will most likely see bull candles (aggressive buyers) and<br />
then a rotation at the day's high (weak sellers).<br />
P-profiles can usually be seen:<br />
1. When the market is in an uptrend<br />
2. At the possible end to a downtrend (this is not a hard rule though).<br />
Most significant areas within P-profile are:<br />
<br />
<br />
POC: good support area if the price goes up the next day(s) and then returns to this area<br />
again (pullback). The price doesn’t have to return to this area immediately the next day.<br />
It can take several days before the price comes back to this POC.<br />
<strong>Volume</strong> cluster in the thin area of the profile: in this place, the aggression of buyers<br />
was most significant – they put heavy volumes in the market to move the price higher.<br />
If the price returns there, it is highly probable that these aggressive buyers will become<br />
aggressive again, they will defend their positions, and they will push the price higher<br />
again.<br />
Typical P-shaped profile looks like this:<br />
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