Fixed Range Volume Profile (FRVP) tool and how you can improve your entries and trading using it.
Threadπ
Threadπ
First, i have to clarify that so many people do not understand the difference between indicators and tools on trading view, Indicators are scripts written by individuals to try and give them ideas of what price may do. However, you have to understand that all indicators only
replicate price actions, they don't actually tell you what price will do. The tools however are built in functions that you can use to get certain info from price. In this case, the Fixed Range Volume Profile(FRVP).
The FRVP tool make it possible to analyze volume trends at
The FRVP tool make it possible to analyze volume trends at
specific price levels & specific time frames. It helps you kinda determine where bulk of the volume is on a particular timeframe, and from my backtesting results, It showed me that price tends to move more towards areas where bulk of the volume are.
So practically speaking, you want to get in at areas with low volume and target areas with high volumes as take profit. I have also discovered that it is a red flag when the market prints bullish or bearish momentums in areas where there is low volume activities.
To find the FRVP tool, go to the tool tab on the left hand screen of your trading view, and tap on the arrow beside the 6th icon, after which you should see the Fixed Range Volume Profile tool. To use the tool, you have to identify the range high and range low of the timeframe
you wish to use it on, then drag from the high of the range to the low, just as we can see on the image below. The areas with higher volume activity are longer than areas with low volume. Looking at the image above also, you can see how price moves from areas with low volumes to
areas with high volumes, the red line indicates the area with the most volume on the timeframe you're on.
You can go to the tools to further customise how you want the volume displayed, customise colours and all.
You can go to the tools to further customise how you want the volume displayed, customise colours and all.
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Cheers!!π«Ά
Cheers!!π«Ά
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