The Volume Profile Indicator or we can say a trading strategy that is used to calculate the total volume of trade within a given period of time at a unique level. Simply we can say that it is used to know the volume of an asset that is used in the market for trading purposes. So the traders can know the volume for a specified time or a time frame level. For its calculation, it uses the previous information and the current trade data.
Working of Volume Profile Indicator
The traders can use this indicator to know the volume of the traded assets. So how this volume profile indicator works? It is an important question before using this indicator the traders must be a piece of good information about its working process. So in this article, we will tell you that how it works?. The volume profile indicator works with many colorful bars on the chart. It takes all the volume of the traded time period for a specific time and a price value, the buying values and selling values will also be included and then these buy and sell values will be divided on the total volume.
This is such a powerful tool for calculating the volume as the indicator name shows.