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Asking about reading of VP

  #6 (permalink)

Munich Germany
 
 
Posts: 32 since Jan 2017
Thanks: 39 given, 12 received

VP is dynamic, not static. It depends on how to profile was formed and where we started vs. where we are now (vs. where we are compared to the last days / weeks / months).
So from a static screenshot it is hard to give you advice.

Also VP doesn't give you buy or sell signals, it provides you with levels that might be of interest in the future. You will have to see what actually happens once price returns there and then see if you can make a trade out of this information (this is where your reading of the DOM / Orderflow comes into play).

You should try and think about what a volume profile actually means, what does it mean if there is an HVN vs LVN?
Once you understand that you'll know what to look for when price comes back to that level and that might then confirm or dismiss a trade idea from that area.

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