![]() ![]() ![]() The profile is painted on the price graph to indicate the prices at which volume occurred rather than the time it occurred, as shown below. However, what if we could use that volume information in conjunction with price or a range of prices? That’s precisely what the volume profile indicator allows for. The caveat here is that it volume is shown linearly as a histogram to indicate the day, week, month etc. This could signal that investors are happy to pay the current price of XYZ and higher prices could continue. ![]() For example, if price of XYZ moved higher by $1 and volume accelerated well beyond the average volume then an investor may conclude that the asset is experiencing higher than normal relative volume. Volume is typically regarded as an indicator for determining if a bullish or a bearish move may continue. How to apply the Volume Profile to Thinkorswim Charts.This tool is quickly becoming a favorite of mine and is gaining popularity quickly amongst traders and investors. With that let’s direct our attention to the Thinkorswim volume profile. However, my spidey senses are telling me that it won’t be nearly as bad as the experts are suggesting. Most of what I’m seeing suggests we’re at the beginning of the worst bear market in history. That is the one word I would use to describe 2022 to this point. ![]()
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