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TradersLibrary2 - anatomy of a volume profile trader

anatomy of a volume profile trader

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3.1 Point of Control and Profile

In 3.1 the profile on the right shows a yellow point of control with a value area

high and a value area low shown by the black horizontal lines.

A break of trend along with light volume traded at price is a clear indication that

price was likely to breakdown and test the other side of the profile for support.

Your profile indicator should show information for whatever is showing on your

screen. This is called MAP display, or dynamic display. In addition your profile

should be set to CalculateOnBarClose = false; if you are day trading.

3.2 Normal distribution

The Normal Distribution identifies standard deviations or sigmas up to 3 Sigma.

I have personally found that expanding the value areas to 2 sigma affords me the

most realistic boundaries when looking for responsive activity. The markets

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