Volume Profile Indicator
The Volume Profile Indicator is a technical analysis tool that displays trading volume at various price levels, helping traders identify key support and resistance areas. A buy signal may occur when the price approaches a low-volume node after a price drop, indicating potential support, while a sell signal may arise when the price reaches a high-volume node after an upswing, suggesting resistance. Traders often use the Volume Profile in conjunction with other indicators to confirm buy or sell decisions, ensuring a more comprehensive analysis of market conditions.