Volume Profile & Value Area description

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🙋‍♂️Hello Community!

This idea is intended for lovers and fans of Keppler John and Market Profile methods such as Gaussian curve, Value Area, Auction Theory, etc.

📚Everything important is to be seen inside the idea, but I will add a description of other terms that will come in handy.


📍Ask
The ask is the price at which sellers are willing to sell in an auction. The forces of supply and demand in the market will influence the ask price at any given point in time based on market conditions. Aggressive demand in the market will usually push the seller’s asking prices higher.

📍Bid
The bid is the price at which buyers are willing to buy in an auction. The forces of supply and demand in the market will influence the bid price at any given point in time based on market conditions. Aggres- sive and abundant supply in the market will usually cause the buyers’ bid prices to drop.

📍Auction Market
A market in which buyers place bids and sellers enter offers at the same time. A transaction only takes place in the auction market when there is an agreement on price between the buyer and the seller. The transac- tion typically takes place at the highest price that a buyer is willing to pay and the lowest price at which a seller is willing to sell.

📍Delta
The delta is a term often used to describe the difference between the level of selling and the level of buying for a given trading session. The delta is calculated by subtracting the total selling volume from the total buying volume for the session. A positive delta is indicative of
a bullish sentiment for the session or period, while a negative delta reflects a bearish sentiment.

📍Distribution
A distribution is the process of trading activity that takes place dur- ing an auction market. Sometimes, the term distribution is also used to describe selling activity in the market.

📍Imbalanced Market
An imbalanced market is a market where prices are moving direc- tionally, seeking a fair price for a balanced market.

📍Initiative Buying
Initiative buying takes place in the market when market participants feel confident that market prices are undervalued and destined to move higher. Initiative buying is aggressive bullish buying activity that moves market prices higher.

📍Initiative Selling
Initiative selling takes place in the market when market participants feel confident that market prices are overvalued and destined to move lower. Initiative selling is aggressive bearish activity that drives market prices lower.

📍Naked POC
A naked POC is a point of control from a previous session’s Profile that has not yet traded in subsequent Profiles.

📍Open Drive
An open drive describes an event that takes place when the market opens the trading day with a strong directional drive. Prices will open and continue to move in one direction without ever breaking the open price. This usually occurs when there are aggressive and determined buyers or sellers in the marketplace.

📍Point of Control (POC)
The point of control on a Profile chart occurs at the price where the most TPO activity has occurred during the session. Visually it ap- pears as the longest horizontal line on the Profile chart.

📍Rotational Market
A rotational market is a market where price activity is bounded by an upper price limit and a lower price limit. Prices rotate back and forth from one side to the other. This type of price activity is also described as a balanced market.

📍Spread
The difference between a bid price (what the buyer is willing to pay for an instrument, i.e. the buyer’s bid) and the ask price (what the seller is asking, or what the seller is willing to accept for an instru- ment) is called “the spread” or “the bid-ask spread”.

📍Unfair High Price
An unfair high price is a price level that is above current value
for a session and is recognized by the long-term market participants as an attractive selling point. Unfair high market prices attract re- sponsive sellers.

📍Unfair Low Price
An unfair low price is a price that is below current value for a session and is recognized by the long-term market participants as an attrac- tive buying point. Unfair low market prices attract responsive buyers.

📍Value Area
The value area on a Profile chart is typically calculated by tracking the number of TPOs on the Profile for a given session, and then identifying or highlighting the range of prices that included ap- proximately 70 percent of the trading activity or TPOs on the chart. This identified price range represents the value area for the session’s Profile chart. The upper price of this Value Area is considered the Value Area High (VAH). The lower price of the VA is considered the Value Area Low (VAL).

📍Value Area High
Once a value area is calculated and identified on a Profile chart, the upper price of this Value Area is considered the Value Area High (VAH).

📍Value Area Low
Once a value area is calculated and identified on a Profile chart, the lowest price level of this Value Area is considered the Value Area Low (VAL).

📍Volume at Price
The total volume that is traded at a specific price level during a set period or session.

📍Volume Distribution
A volume distribution shows the various levels of traded volume at each price within the price range for the session. It is often displayed as a histogram on the side of a Profile chart.

📍Volume Histogram
A histogram display indicating the total traded volume for a specific period.

📍Volume Point of Control (VPOC)
The volume point of control on a Profile chart is the price level that had the greatest level of trading activity during a session. The price level that has the largest volume traded during a specified period or session. Note: The volume point of control is not always at the same price level as the POC for the session.

📍Volume Value Area
The volume value area is the price range for a session that includes 70 percent of the traded volume for that session.

📍Volume Value Area High
The volume value area high is the upper limit of the volume value area for a specific session.

📍Volume Value Area Low
The volume value area low is the lower limit of the volume value area for a specific session.

🎉I believe it helps you! Please like and comment!
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This strategy I use for my real trading. Check how I trade it before and after.

AUDUSD - Intraday Analysis & my Entry levels
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And EURUSD short level

EURUSD - New intraday short level (update)
Chart PatternsTechnical IndicatorskeylevelsordeflowTechnical AnalysistradeerTrend Analysisvalueare

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