Getting the most from Volume Profile with Jigsaw daytradr

In distinction to standard quantity indicators plotted towards the time axis, the quantity profile indicator gives a particular viewpoint by plotting quantity knowledge alongside the worth axis. This strategy allows merchants to pinpoint areas of heightened or diminished buying and selling exercise, thereby serving to to acknowledge potential help and resistance ranges.

On this video, we’ll discover the performance of the quantity profile indicator. We’ll delve into its versatility and customizable options, illustrating how merchants can adapt the indicator to align with their buying and selling methodologies and preferences. This consists of adjusting parameters akin to profile kind, session settings, and visualization choices to higher swimsuit their wants. Be a part of us as we uncover the various capabilities of the quantity profile indicator and find out how it may be leveraged to reinforce buying and selling evaluation and decision-making processes.

Notes:

In at this time’s video, our focus will probably be on the quantity profile indicator, a device that has gained reputation in recent times. 

Not like the usual quantity indicator, which is plotted on the time axis and reveals the entire quantity traded at a selected time or bar, the quantity profile takes a special strategy. It is plotted on the worth axis, offering a novel perspective on the traded quantity per worth all through a particular interval.

However let’s discover the settings of the quantity profile indicator and uncover the varied views it presents.

Let’s begin by opening a chart.So as to add the quantity profile indicator or another indicator, we have to go to Settings and click on on Indicators. Double-click on JT Quantity Profiles, and on the fitting aspect, we have now all of the related settings.

The primary choice to make is the “Profile Kind”, providing three choices: “Composite”, “Classes”, and “Selectable”. Let’s begin with the “Composite kind”. Beneath it, there is a alternative on how the composite is offered.Let’s begin with the primary one, “All”. When this selection is chosen, the “Composite Intervals” possibility, beneath, is just not relevant. We click on “Apply” to allow the settings on the chart, and with these settings, no matter zooming in or out, the whole dataset stays seen, on this case, we have now loaded 10 classes.

In case you wish to know the precise quantity traded per worth, go to the Data Field button, and click on as soon as to allow it, which gives you the knowledge per bar, however once you click on a second time, it gives you the quantity studying per worth.

Subsequent, we have now the “Seen” possibility, and just like the earlier possibility, the “Composite Intervals” settings usually are not relevant. We click on “Apply”, and as we zoom out and in, the seen bars alter the quantity profile dynamically.

Shifting now to the “Bars” possibility, you’ll be able to choose the “Composite Intervals” you need, on this case, what number of bars. We will take a look at the quantity profile for the final 5 bars, for instance, or the final 60 bars. 

Subsequent, we have now the “Classes” possibility, the place you’ll be able to select what number of classes to show within the “Composite Intervals”. Let’s choose 1 session, and click on “Apply”. We are actually wanting on the present session alone.

The final three choices for constructing composite profiles are time-based. You’ll be able to specify the final half-hour, the final 2 hours, or let’s say the final 5 days.

Wanting now on the “Classes” profile kind, when chosen, neither the “Composite By” nor the  “Composite Intervals” choices are relevant.Let’s click on “Apply”, and it’ll create a profile for every session. On this specific state of affairs, we’re utilizing the CME Indices session template which divides the buying and selling day into 2 separate classes, the in a single day and the day session.When you solely wish to view the day session and take away the in a single day, go to the chart Settings, and disable the “Present Prolonged Hours” possibility. Click on “Okay”, and the in a single day session is faraway from the chart.

When wanting on the session profiles, merchants typically analyze previous days, utilizing the purpose of management, the worth space, or the excessive and low-volume nodes as reference factors for potential resistance or help.

The purpose of management represents the worth at which the best buying and selling quantity occurred inside a particular interval, marked with a darkish pink colour.

The Worth Space covers the costs the place about 70% of all buying and selling exercise occurred inside a particular interval, marked with a lighter inexperienced colour.

Excessive-volume nodes are areas with excessive traded quantity, whereas low-volume nodes are areas with minimal buying and selling curiosity from merchants. 

At Jigsaw, we deal with the newer quantity, which means, at this time’s quantity holds extra relevance than the quantity traded 2 or 3 days in the past. Right this moment’s quantity represents essentially the most present positions and subsequently areas the place dedicated merchants are almost definitely to react.

The final Profile Kind is the “Selectable”. Additionally, right here, the “Composite By” and the  “Composite Intervals” choices usually are not relevant. Let’s click on “Apply” and on the highest left, discover the choice is “OFF”. Click on on it to show it “ON”.

We are actually in a position to attract as many profiles as we would like. Click on along with your mouse’s left button on the beginning bar, proceed to press till the ending bar, after which launch the button. You’ve got your first profile.

Let’s create a pair extra profiles. To delete them, both click on on the “X” to delete a selected profile or click on on “Clear all areas” to delete all of the profiles.

Wanting on the different settings, you’ll be able to alter the worth space share, profile width, and opacity. You’ll be able to determine if you wish to see the worth space, its strains, and the purpose of management or their costs. Align them to the fitting or left aspect, and customise their colours.

In abstract, the quantity profile is a robust device so as to add to your buying and selling arsenal, whether or not you’re specializing in the depth and gross sales or conventional charts.