Volume Profile Thinkorswim: A Comprehensive Guide

Thinkorswim is a powerful trading platform that offers a range of advanced tools and features, including the Volume Profile indicator. This indicator is a game-changer for traders who want to gain a deeper understanding of market activity.

The Volume Profile indicator is a graphical representation of volume data, showing the range of prices at which a certain volume of trades occurred. It's a visual way to see where the most trading activity is happening.

To access the Volume Profile indicator on Thinkorswim, simply click on the "Indicators" tab and search for "Volume Profile." From there, you can customize the settings to suit your trading needs.

The Volume Profile indicator is a key component of the Thinkorswim platform, and it's used by traders of all levels to make informed trading decisions.

You might like: Thinkorswim Osc Indicator

Thinkorswim's volume profile is a visual representation of trading activity, showing the amount of volume traded at each price level.

This helps traders identify areas of high buying and selling interest.

Volume profile charts display the volume traded at each price level, with the highest volume traded at the point where the price was most active.

For example, if a stock's price was highly volatile, the volume profile would show a large amount of volume traded at the highest and lowest price levels.

The Thinkorswim volume profile also shows the Net Volume, which is the difference between the volume traded at the bid and ask prices.

This helps traders identify areas of imbalance in the market, where one side is more aggressive than the other.

A fresh viewpoint: Best Daytrading Platforms

The Volume Profile study is a powerful tool for visualizing imbalances between buyers and sellers. Fatter bars on the profile indicate more volume occurred at those price levels.

To read the Volume Profile, look at the bars column on the right-hand side of the chart. The POC (Point Of Control) is the price level where the greatest volume of trades occurred, indicated by a red line in the middle of each profile.

The Value Area (VA) is where 70% of the volume took place during the day, with the VA High and Low indicating the highest and lowest price levels within this area. The shape of the distribution can be used to understand the positioning of market participants.

Here's a quick reference guide to the key components of the Volume Profile:

The volume profile study is a powerful tool for visualizing imbalances between buyers and sellers. It's a must-have for any trader looking to gain an edge in the markets.

Fatter (longer) bars in the profile indicate areas where more volume occurred, while thin (shorter) bars show price levels that were visited briefly with little volume. This helps you identify key areas of support and resistance.

The red line in the middle of each profile is the point of control (POC), where the greatest volume of trades occurred. This is a crucial level to watch, as it often acts as a magnet for price action.

To read the volume profile study, look at the bars column on the right-hand side of the chart. You'll see the following key levels:

As price action trades sideways, it builds a support area for future price movement. This is easily viewed when the price touches the new support and bounces higher. The longer price action trades sideways, the bigger the Volume Profile bars become, indicating a key important trading price or area on the chart.

Related reading: Thinkorswim Auto Support

Adding analysis indicators can be a bit tricky, but don't worry, I've got you covered. You can access the Studies menu by clicking on the Studies button at the top right of the chart.

To add a Volume Profile indicator, select Studies > Add Study > All Studies > U–W > Volume Profile. This will add the Volume Profile to your chart. You can also change the display of the Volume Profile by selecting Studies > Edit studies... and then clicking on the settings icon for Volume Profile.

See what others are reading: Thinkorswim Studies

To overlay the Volume Profile on the price chart, select No for on expansion. This will keep the Volume Profile from taking up too much space on your chart.

Here are the steps to add a Volume Profile analysis indicator on ThinkorSwim (TOS) Settings in a concise list:

As you change the time-frame of the chart, the Volume Profile should adjust to capture support and resistance pressure lines with the new time-frames.

You can add a volume profile to a chart by selecting Studies > Add study > All Studies > U–W > Volume Profile. This is a straightforward process that will give you access to the volume profile indicator.

To change the display of the volume profile, select Studies > Edit studies... and then select the settings icon for Volume Profile. From there, you can choose to overlay the volume profile on the price chart by selecting No for on expansion.

Readers also liked: Best Thinkorswim Studies

If you're using ThinkorSwim, you can add the volume profile indicator by going to the Charts Tab header, typing in a ticker symbol, and clicking on Studies at the top right. Then, select Studies / Add Study / Market Strength Studies / Volume Profile and click on the name Volume Profile to add it to your chart.

As you change the time-frame of the chart, the volume profile should adjust to capture support and resistance pressure lines with the new time-frames. This means you can view different time frames and become acclimated with the information the volume profile provides.

To apply the volume profile to Thinkorswim charts, locate the studies search box to the left, type “volume profile”, and double click to apply it to the current chart. Click ok to exit and you’ll see the volume profile is now painted on the current chart.

Here are the steps to add a volume profile to Thinkorswim in a concise list:

A balanced market is indicated by a symmetrical price distribution around a center point, with high volume near the midpoint and light volume near the day's high and low range.

This scenario can be interpreted as having an established "fair price" with activity fluctuating around that level. Traders can attempt to sell the top 15% of the range or buy the bottom 15%, expecting price to return to the POC.

A balanced market is not always the case, and prices can trade in a skewed or asymmetrical pattern, creating an imbalanced market.

In an imbalanced market, the POC will be either high or low in the range, often indicating a trending market. A p-type pattern can potentially indicate a bullish trend if the POC and value area are at the top of the range.

A b-type pattern can potentially indicate a bearish trend if the POC and value area are toward the bottom of the range.

Traders might look for an opportunity to buy near the bottom of the value area if they think there's a potential emerging trend. This can be a good entry point, especially if the p-pattern was formed the previous day.

A unique perspective: Equity Market Volume

To take full advantage of the Thinkorswim trading platform, you need to set up a volume profile in your charts by choosing to add the Volume Profile setting.

The Volume Profile Analysis is a technical analysis that allows traders to identify buyers' and sellers' balances, helping determine when a stock has been oversold or overbought.

To read Volume Profile Analysis, you need to look at the bars column on the right-hand side of the chart, which includes key indicators such as POC, Profile High, Profile Low, VA High, and VA Low.

POC stands for Point Of Control, which is the most volume/price action that has traded, and it can sometimes act like a magnet, attracting price movements.

The Volume Profile is a popular indicator used by traders to analyze and identify patterns in the price movement of a security, attempting to show how much volume was done at the specified period and the relationship between the volume profile and the price.

Here's a breakdown of the key indicators you'll see in the Volume Profile:

High and low volume areas are worth noting, as they indicate levels of acceptance (high volume) and rejection (low volume), which can sometimes occur at extreme highs or lows.

You might like: High Profile Vehicle

The Thinkorswim trading platform can be a powerful tool for trading stocks.

To take full advantage of the software, traders need to set up a volume profile in their charts.

Leveraging volume profile in trading can help you determine when a stock has been oversold or overbought.

A volume profile is a technical analysis that allows traders to identify buyers' and sellers' balances.

It's a valuable tool for traders who want to make informed decisions about their trades.