Understanding market dynamics as a trader is a must. How can you develop a trading strategy without market knowledge? However, keeping up with what’s happening in the markets can be challenging without the right tools.

That’s where Eightcap and our unique partnership with TradingView comes in! We are the UK’s only exclusive TradingView only broker, meaning you can chart and trade in one place while making use of TradingView’s volume profile indicators. These are helpful tools for traders looking to boost their understanding of the market. 

TradingView’s volume profile indicators explained simply

TradingView’s volume profile indicators are a great tool for analysing price action. Unlike the traditional volume indicators that just track trading activity over time, the volume profile shows you where most of the trading happens at specific price levels.

This info is invaluable for traders! It can help you spot key support and resistance zones, identify areas of liquidity, and even find potential breakout points. If you want to get a clearer picture of market activity and understand price action better, the volume profile indicator on TradingView is a must!  

What’s in it for you?

Using the TradingView volume profile indicator can really help make sure your trading strategies are grounded in real market information. Here are a few key insights it can provide:

• Key support and resistance levels: it helps you identify price levels where the most trading activity happens. 
• Market sentiment: you can get a clear view of whether buyers or sellers are driving market movements at specific price points, potentially giving you a better sense of where things might head next. 
• Breakout confirmation: by analysing volume clusters, you can spot potential breakout zones.

It’s certainly a handy tool to have in your trading toolkit!

Let’s get stuck in: here’s how to use volume profile indicators in TradingView

Once you get the hang of it, TradingView’s volume profile indicator tools are not only simple to use but also easily customisable. Here’s a step-by-step guide on how you can access and use them:

Access the volume profile indicator TradingView: First, open TradingView and select the asset you want to analyse. Then, click on the indicators button at the top of the chart. Type “volume profile” into the search bar, and from there, you can pick the indicator that suits you best, like Fixed Range, Session Volume, or Visible Range. 

• Row size or number of rows: this controls how granular your volume distribution is.
• Value area (% of volume): this highlights the range where most of the trading activity took place, giving you key insight.
• Point of control (POC): this shows you the price level with the highest traded volume, which can be super helpful for spotting trends. 

• High-volume nodes (HVNs): these areas point out strong support and resistance levels. 
• Low-volume nodes (LVNs): these can indicate zones where the price might move quickly.
• Point of control (POC): this is a key level to watch for price reactions, giving you valuable insights into market behaviour. 

• Look for support and resistance levels based on those high-volume areas you identified.
• Validate breakouts by checking for an increase in volume at key levels.
• Keep an eye out for low-volume gaps, as these could signal fast price movements ahead.

By mastering these steps, you can work towards refining your market analysis with TradingView’s volume profile indicators!

Best volume profile indicators on TradingView

TradingView offers several variations of the volume profile indicator, and each one may be relevant to different trading preferences. Here’s a quick rundown:

• Visible range volume profile: this one automatically adjusts to show the volume distribution for whatever price range you currently have visible on your chart. 
• Fixed range volume profile: with this option, you can analyse specific periods of market activity by selecting a custom range. It’s great for digging into particular timeframes. 
• Session volume profiles: this tool gives you insight into the volume distribution during a single trading session, which may appeal to day traders who want to keep track of daily movements. 
• Developing point of control (POC), value area (VA), and high-volume nodes (HVN): these features help you identify those critical price levels where most of the trades are happening, which can really inform your trading strategy.

With all these options, you can choose what best fits your trading style!

Which volume indicator is best in TradingView?

Are you curious which indicator is best for TradingView? Take your pick…

1. Identify strong support and resistance levels: take a look at the high-volume nodes (HVNs) on the volume profile chart. These are the price levels where a lot of trading activity has been happening, and they often act as solid support or resistance zones. You’ll see prices react around these levels quite often. 
2. Confirm breakout opportunities: when the price breaks above a resistance level with high volume, that’s often a good sign of strong buying momentum.
3. Refine your trade entries and exits: low-volume areas (LVNs) are great to identify because prices tend to move quickly through these zones.
4. Combine with other indicators: you can use insights from TradingView volume profile indicators alongside tools like moving averages, RSI, or MACD.

Here’s the icing on the cake: TradingView is integrated with Eightcap, allowing traders to access volume profile tools. Trading directly from your TradingView charts streamlines your trading processes so you can focus on what’s important to you! Ready to get down to business? Start using TradingView’s volume profile indicators when you trade with Eightcap today!