Wednesday, February 18, 2026

Capital Market Chronicles – Episode 278: TECHNICAL ANALYSIS – VOLUME PROFILE (Part III)

 🌟 Capital Market Chronicles – Episode 278: TECHNICAL ANALYSIS – VOLUME PROFILE (Part III)

“Where volume builds, price respects.” 🧱📈




Now comes the practical application.

Volume Profile isn’t just for admiration.
It’s for action.

🎯 1. Identifying Support & Resistance

High-volume nodes act as magnets.

Why?

Because a lot of business was conducted there.

Traders who bought there will defend it.
Traders who sold there will remember it.

Markets have memory.

And memory creates a reaction.

📈 2. Trend Confirmation

In an uptrend:

If rising prices are supported by strong volume clusters,
it signals genuine buying interest.

In a downtrend:

Heavy volume near resistance suggests sellers are active.

Volume confirms whether a trend has strength
Or is it simply dramatic noise?

🚪 3. Refined Entries & Exits

Entering near a strong volume zone provides:

  • Structural backing

  • Logical stop placement

  • Defined risk

Exiting near another major volume level helps:

  • Lock profits

  • Avoid sharp reversals

Volume doesn’t eliminate uncertainty.

It organises it.

Next: the powerful trio — Value Area, POC, and Volume Nodes. 🔥


⚠️ Disclaimer: This Blog is for general guidance only and does not replace personalised financial advice.

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Capital Market Chronicles – Episode 278: TECHNICAL ANALYSIS – VOLUME PROFILE (Part III)

  🌟 Capital Market Chronicles – Episode 278: TECHNICAL ANALYSIS – VOLUME PROFILE (Part III) “Where volume builds, price respects.” 🧱📈 N...