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Introduction to the Volume Profile Range Indicator

Trading platforms often plot volume as a function of time. This means that the information displayed is related to how much volume was transacted within a period or bar. However, another critical information that traders could use would be volume as a function of price. It is important for us to know how much volume was traded as a particular price point since this gives us an idea whether the market views that price point as a key level or not. This is where the Volume Profile Range indicator is used for.

What is the Volume Profile Range Indicator?

The Volume Profile Range indicator indicates volume as a function of price. It overlays horizontal lines on the price chart indicating the volume of transactions at different price points within a day.

How the Volume Profile Range Indicator Works?

The Volume Profile Range indicator detects the volume of price based on the “Tick Volume” of every 1-minute bar as a preset. However, it also allows traders to use “Real Volume” per “Tick” whenever this data is available from the broker’s server.

This indicator then plots horizontal lines indicating the volume of transactions on each price level.

It also plots a horizontal Volume Weighted Average Price (VWAP) line which is represented by the dotted lines.

How to use the Volume Profile Range Indicator for MT5

The Volume Profile Range indicator has several useful bars that can be modified. Among this, the “Range Period”, “Range Count”, “Mode Step”, “Volume Type”, and “Data Source” are some of the most important options that traders can tinker with.

Price areas with high volume often indicate that these levels are key support or resistance areas. Price would typically find it difficult to move with momentum when it is in such area.

One of the most viable ways to trade this indicator is to trade breakouts coming from an area with dense volume as price tends to move with strong momentum as it breaks beyond these areas.

Buy Trade Setup

When to Enter?

Identify key price areas where there is high volume of trade. Open a buy order as soon as price breaks above the area with strong momentum. Set the stop loss on the support below the entry candle.

When to Exit?

Set the take profit on the next area with high volume of trade which can act as support.

Sell Trade Setup

When to Enter?

Identify key price areas where there is high volume of trade. Open a sell order as soon as price drops below the area with strong momentum. Set the stop loss on the resistance above the entry candle.

When to Exit?

Set the take profit on the next area with high volume of trade which can act as resistance.

Conclusion

This is one of the most effective tools that profitable traders use. However, this tool is more effective when the data feed used is from real price on a per tick level. Some brokers provide this data while others do not. Still, this information can be very useful and many professional traders use this type of indicator to trade profitably.

MT5 Indicators – Download Instructions

Volume Profile Range Indicator for MT5 is a Metatrader 5 (MT5) indicator and the essence of this technical indicator is to transform the accumulated history data.

Volume Profile Range Indicator for MT5 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT5 Strategies

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How to install Volume Profile Range Indicator for MT5.mq5 to your MetaTrader 5 Chart?

• Download Volume Profile Range Indicator for MT5.mq5
• Copy Volume Profile Range Indicator for MT5.mq5 to your Metatrader 5 Directory / experts / indicators /
• Start or restart your Metatrader 5 Client
• Select Chart and Timeframe where you want to test your mt5 indicator
• Search “Custom Indicators” in your Navigator mostly left in your Metatrader 5 Client
• Right click on Volume Profile Range Indicator for MT5.mq5
• Attach to a chart
• Modify settings or press ok
• Indicator Volume Profile Range Indicator for MT5.mq4 is available on your Chart

How to remove Volume Profile Range Indicator for MT5.mq5 from your Metatrader 5 Chart?

• Select the Chart where is the Indicator running in your Metatrader 5 Client
• Right click into the Chart
• “Indicators list”
• Select the Indicator and delete

Volume Profile Range Indicator for MT5 (Free Download)

Click here below to download:

Download Now

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By: Forex Committees
Title: Volume Profile Range Indicator for MT5
Sourced From: www.forexmt4indicators.com/volume-profile-range-v6-0-forex-mt5-indicator/?utm_source=rss&utm_medium=rss&utm_campaign=volume-profile-range-v6-0-forex-mt5-indicator
Published Date: Thu, 18 Aug 2022 19:27:35 +0000

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