Volume Profile Range Indicator for MT5

0
1960
Volume Profile Range Indicator for MT5

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.

Volume Profile Range Indicator for MT5

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.

How to use the Volume Profile Range Indicator for MT5

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.

How to use the Volume Profile Range Indicator for MT5 - Buy Trade

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.

How to use the Volume Profile Range Indicator for MT5 - Sell Trade

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.

Recommended MT5 Brokers

XM Broker

  • Free $50 To Start Trading Instantly! (Withdraw-able Profit)
  • Deposit Bonus up to $5,000
  • Unlimited Loyalty Program
  • Award Winning Forex Broker
  • Additional Exclusive Bonuses Throughout The Year

XM broker

>> Sign Up for XM Broker Account here <<

FBS Broker

  • Trade 100 Bonus: Free $100 to kickstart your trading journey!
  • 100% Deposit Bonus: Double your deposit up to $10,000 and trade with enhanced capital.
  • Leverage up to 1:3000: Maximizing potential profits with one of the highest leverage options available.
  • ‘Best Customer Service Broker Asia’ Award: Recognized excellence in customer support and service.
  • Seasonal Promotions: Enjoy a variety of exclusive bonuses and promotional offers all year round.

fbs broker

>> Sign Up for FBS Broker Account here <<

Upgrade

(Free MT5 Indicators Download)

Click here below to download:

Volume Profile Range Indicator for MT5

Get Smarter About Forex Trading Using Indicators

Join 100,000+ subscribers and get our 5 min daily newsletter on what matters in forex.

We do not sell or share your information with anyone.

LEAVE A REPLY

Please enter your comment!
Please enter your name here