![]() ![]() The chart above shows a Volume Profile of the SPY from the beginning of December 2019 to the current date (December 13 th, 2019). Volume Profile is a powerful and useful tool for determining important price levels. The software used for this article is MotiveWave. Some traders may find it extremely beneficial during short term day trading time frames but not as useful during long term swing trades that develop over periods of weeks or months. I also want to point out that TPO may not be appropriate for all traders and all time frames. Instead, I want to draw your attention to how complementary TPO is to Volume Profile versus utilizing Volume Profile solely. I do want to point out that while TPO has some distinct advantages over the Volume Profile, that is not to suggest that the Volume Profile is somehow irrelevant. ![]() Market Profile is a more precise and definitely more distinct form of VAP analysis, as you will see. ![]() Market Profile is different than Volume Profile, although many places and people will use the terms interchangeably. Out of the two VAP options, Volume Profile is perhaps the most well-known and accessible. The two primary forms of VAP are Volume Profile and Market Profile (Time Price Opportunity). VAP analysis differs from ‘normal’ volume analysis because VAP analysis displays how much of something was traded at a certain price, versus during a particular time. For day trading a market with fixed supplies like the stock market, there are few tools as useful and as powerful as the tools found in Volume-At-Price Analysis (VAP). ![]()
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