![]() ![]() The value area is determined as one standard deviation for the current chart. Again, the red line or “point of control” is the single greatest point at which transactions occurred. Essentially, that is the range of prices where most participants were previously willing to get involved. The yellow lines or “value area” is also denoted by yellow hue across that range of prices. The first few items to identify once the Thinkorswim volume profile has been included on the chart is the two yellow lines and the red line or POC as we’ve already discussed. Pretty awesome, right? Common Volume Profile Use With the volume profile added to the chart take some time to view different time frames and become acclimated with the information it provides. Adding a Study to Thinkorswim ChartĬlick ok to exit and you’ll see the volume profile is now painted on the current chart. Find it in the resulting list and double click to apply it to the current chart. Once selected, Locate the studies search box to the left. Then select the beaker icon to edit studies. Start by selecting the chart tab along the top ribbon. ![]() How to Apply the Volume Profile to Thinkorswim Charts Compare that with the standard volume histogram and it can provide the trader or investor critical insights into the assets price behavior. The volume profile can be added to any desired timeframe to see at what price volume actually occurred. Apple Price Chart with Volume ProfileĪdditionally, the image above is a 1 year chart with daily candlesticks. Or said another way, the point at which the MOST buyers and sellers believed price was fair. That is the point of control (POC) and depicts the price at which the most shares traded hands. From the price chart of Apple, notice the red line where the highest volume occurred. 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. ![]()
0 Comments
Leave a Reply. |