🌟 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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