Improve your volume analysis using volume profile.

A thread on volume profile 🧵

Traditional volume indicator is widely used by almost every trader.

But it has a handicap: It shows volumes transacted from a time POV but not the price POV.

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This is what traditional volume analysis states. But in reality, how effective it is?

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It simply shows volume from a timeframe basis. 5 mins volumes on 5 mins TF and so on.

But, is there a different way to read volumes from a price basis? Like, where did largest buying or selling by big players come in?

Read to find more.

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This is where volume profile comes in. To put it in the simplest way, volume profile shows volume from a price perspective thus enabling a trader to identify where largest trading has occurred.

But how does this help a trader?

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If you can spot the areas where large volumes are being traded, you can spot areas of interest and effectively find areas of support and resistance.

Of course, it is volume that drives the price.

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What is orderflow trading and how to develop an edge using orderflow:
A thread 🧵
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#StockMarket

As the name suggests, orderflow is the flow of orders in a stock or index which are being executed in live market.

Normal candlestick shows the candle open, high, low and close but not the actual buyer and seller activity which is happening at every price point.

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Orderflow chart shows a deeper insight into a candle's price action by showing the volumes that are coming in at every price level.

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Why is this information important?
1. As a retail trader, we would like to follow the steps of large players and institutions and see whether they are more inclined towards longs or shorts.
2. OF data shows us the real time supply demand which is flowing into the market

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