Volume Profile
Volume Profile Analysis glossary · Profile Shapes & Distributions
Definition
A chart showing cumulative volume transacted at each price level over a specified period. The central analytical tool of this treatise.
Volume Profile in plain English
Most charts show you price over time. A Volume Profile flips the question and asks: at each price level, HOW MUCH trading actually happened there? It stacks up horizontal bars beside the chart — long bars at prices where tons of shares changed hands, short bars where almost nobody traded. It's like a heat-map of where the crowd did its shopping, and it tells you which prices the market truly cares about (and which it just passed through), which is why it's the star tool of this whole book.
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