Volume Profile Indicator Pro Version Introduction... 2 Getting Started... 3 Choose your chart history... 3 Selecting Volume Profile and Volume Profile Filter in Chart Indicator window... 3 Overview of Volume Profile Parameters... 4 Overview of Volume Profile Filter Parameters... 8 Problem Solving... 8
Introduction The Volume Profile Indicator will give you a long term distribution showing the volume range at different price levels. The Volume Profile and Volume Profile Filter indicators work together to create your Volume Profile. There are several options for creating your Volume Profile distribution which are explained below. The Volume Profile and Volume Profile Filter are always added to the bar pane of your charts (not the indicator panes).
Getting Started Choose your chart history Right click on your chart and choose Chart Parameters. Make sure you have at least 30 days of data. The number of days in the chart history will affect the volume profile indicator and change its pattern. Selecting Volume Profile and Volume Profile Filter in Chart Indicator window Right click on chart and choose Chart Indicators from the drop down list. The Chart Indicators window will open. 1) Use the slider bar on the right of the Available Indicators section to scroll down to Volume Profile and Volume Profile Filter.
2) Select Volume Profile 3) Click the small arrow head pointing to the right to move this indicator to the list of Selected Indicators. Repeat this step with Volume Profile Filter selected. 4) The Selected Indicators window shows the list of indicators that will appear on your chart. 5) Highlight the Volume Profile indicator and click the Parameters button to select the parameters of your choice. Overview of Volume Profile Parameters The concept in using the Volume Profile and Volume Profile Filter parameters is to scale the distribution to the market you are viewing and use it to see a pattern of volume. 1. Ticks Per Bar This will define the number of price levels. You can decide how many ticks you want aggregated in one vertical column of the histogram. Note: Upper Lot Size and Lower Lot Size are grayed out. You will set those parameters in the Volume Profile Filter Indicator. 2. Lot Increment Each vertical column represents the number put in this field. For example, if you put 10,000 here, each vertical column represents 10,000 lots. If you decrease this number you it will increase the width of the distribution bar. Increasing the lot increment will decrease the size of the histogram.
3. Bid/Ask Breakdown Use this if you want to see Bid and Ask volume rather than total volume. 4. Track Price Scale This should be left checked. 5. Cumulative If this is checked, the chart will show the cumulative volume at each price for the entire period of your chart. For example if your chart goes 30 days back, this will use the cumulative volume for the entire 30 days at that price. This should be left checked.
6. Show Numbers When checked this shows the actual volume in numbers as well as seeing a graphic display from the histogram.
7. Draw on Right Side This will draw the histogram on the right side next to the price scale rather than on the left side of the chart.
Overview of Volume Profile Filter Parameters Notice this window is basically the same window as the Volume Profile Parameters but the Upper and Low Lot Size choices are available and the other choices are available in the Volume Profile Parameters. This allows you set a limit on the upper lot size and a limit on the lower lot size. Upper Lot Size: Typically you would not want to limit this value so put a large number here as shown above. If you have a reason to limit your upper lot size you can do that here. Lower Lot Size: The default value is for one lot, but if you want to see the larger lot size traders such as 50 lots and above you can set that value here. This in effect filters out the small trades and focuses on the larger quantities. Problem Solving 1. If you cannot get the Volume Profile to appear on your chart, add more days to your Chart Time Range in the Chart Parameters window. 2. Another place to check is the Parameters window for the Volume Profile in the Chart Indicators window. Increase the Ticks Per Bar. You can also try increasing the Lower Lot Size in the Volume Profile Filter parameters window.