I have recently discovered (I don't know if it is recent or takes time) a new tool within tradingview. Until now I had been looking for volume profile indicators among those that the people produce, but it had not been very successful. The other day looking through the tools to paint trend lines, etc I found the volume profile. In case you do not know it, I am going to explain to you how this tool works since I see it as very useful. This is the link to this awesome tool.

Explained with my words the volume profile is a graphic tool that allows you to see the volume of the token exchanged at each price level, instead of doing it per unit of time as the volume we are used to works. In this way we can see how much has been exchanged in each price level generating possible supports and resistances.

Well, the first is to manage all the data and always try to find setups connected with several indicators, and not only one.

Like I told you in my last post Three rules to enter a trade We shouldn't enter in a trade only for one only reason.

The first data we can obtain from this indicator is possible resistance and support lines if these lines have a sense with the rest of the chart we could have a solid indicator to setup a trade. We can mix this information with Fibb levels to reinforce the indicator.

This indicator can be used in tradingview, but one key is what interval take to get caught for the indicator? One way is take a interval of price go up or go down. Lets see an example and will be more simple to explain.

This graph is current, it is the ripple drop from $0.55 to $0.20 that occurred yesterday. If we apply the indicator to this interval we can see that small volume peaks are formed which coincide with small resistances in the price drop.

In the graph we distinguish the PoC and the VaH and VaL values that establish a price range where almost all the volume moves and therefore it is likely that once the price goes out of that range it will tend to go back in. This interpretation is very relative and should always be seen in conjunction with other indicators as discussed above.

As you can see the price has bounced off 0.19 and has risen rapidly to 0.38. At this point we see that there is a rebound if we want to enter a good price would mark the PoC that has been below at 0'31. As you can see the price actually returns to this area twice

Another way to take the periods for the indicator is to take a fixed and repeated period, such as 1-day periods.

This will give us an idea of the supports and resistances that are being created and can be a useful indicator to move within the daily trading.

It is striking how PoC from immediately preceding days mark the resistance or support of the price the next day.

If we take the period since the launch of WLEO in trading view we can establish the following zones of PoC, VaH and VaL. As we can see the price has been fluctuating in the value zone and is now in a clear downward deviation.

We can therefore expect two scenarios, a consolidation at the current level that would change the PoC to a lower price, or a recovery of the price to levels close to the current PoC.