Tuesday, February 17, 2026

Capital Market Chronicles – Episode 277: TECHNICAL ANALYSIS – VOLUME PROFILE (Part II)

 🌟 Capital Market Chronicles – Episode 277: TECHNICAL ANALYSIS – VOLUME PROFILE (Part II)

“The longer the bar, the louder the crowd.” 📏📢


Now let’s decode the structure.

Volume Profile may look intimidating at first —
like someone stuck a barcode on your chart. 😄

But it’s beautifully logical.

🏗 Step 1: Data Aggregation

Volume from lower timeframes is grouped and redistributed by price level.

Instead of asking:
“When did trades happen?”

We ask:
“At what price did most trades happen?”

That shift changes everything.

📊 Step 2: Histogram Construction

You’ll see horizontal bars along the price axis.

  • Long bar → heavy trading

  • Short bar → light trading

Imagine a marketplace:

Busy stall → long queue (long bar)
Empty stall → nobody cares (short bar)

Markets behave the same way.

Where trading is dense, price slows down.
Where trading is thin, price travels fast.

🎨 Step 3: Colour Coding

Many platforms show:

  • Green = buying pressure

  • Red = selling pressure

It’s not just decoration.

It reveals the balance of power.

And trading, at its core, is a power game.

Next: how traders convert this visual into structured trade decisions. 🎯

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Capital Market Chronicles – Episode 277: TECHNICAL ANALYSIS – VOLUME PROFILE (Part II)

 🌟 Capital Market Chronicles – Episode 277: TECHNICAL ANALYSIS – VOLUME PROFILE (Part II) “The longer the bar, the louder the crowd.” 📏📢...