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