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Glossary entries where you can learn about volume trading

• VPVR (Volume profile visible range)
• Market Profile
• Footprint Trading
• OBV Divergence
• BGD

Volume Profile Strategies

Volume trading strategies that spread the most include:

• Volume support/resistance: Price levels where very high volume was traded will in the future form the base of ranges. Evidently these are areas where a lot of the asset changed hands, so they can be considered support/resistance levels.
• Filling the gap: If the price action went fast on a very thin volume, the theory says the price will throw back to the volume support and “fill the gap”.
• Volume vs price change: If the price moves a lot on a thin volume, the sustainability of the action is questioned. This situation can paint the Bart Simpson pattern.

Popular tools for Volume Trading

There are several technical analysis tools and devices that crypto traders like to use for volume trading.

The most popular volume trading indicators:

• VPVR, or volume profile visible range, gives granular data
• OBV, or on balance volume, gives averaged-out data
• Charting apps like footprint charts or Tensorcharts work with volume profile within a candle

Granular Volume Trading is Expensive

Volume Trading tools are marketed as an advanced tools. It is not that volume trading would be difficult to understand, but that VP gives rich, granular (…expensive) market data. Your usual free TA tools give you averaged, statistical data.

Get VPVR with TradingView PRO   Get VPVR with Tensorcharts PRO

There are free volume profile indicators in the scripts in TradingView library.

These are not the same but they are a start.

Best Tools for Crypto Volume Trading

• Trading Platform: Bitfinex
• Charting Tool: Tradingview
• Automated Trading Strategies: Coinrule

Read our list of tools for crypto traders for more free and freemium options.

Technical analysis tools that combine well with volume trading

Volume profile is often used as a complement to other methods of technical analysis.

• Ichimoku cloud
• Bollinger bands strategies
• Order flow and heatmaps

Last but not least: If you are a fan of the Wyckoff method, plotting volume on the side of the chart can help you analyze market ranges.

More on Volume Trading

BLOG

6 Trading Indicators Every Technical Trader Needs to Know -

[Ready To Automate] VTrend Volume Trading Strategy on TradingView - Premium Script -

Volume profile trading on TradingView - ScriptSpotlight - Quite a dive into volume trading with various (free) volume profile indicators on TradingView and Cryptowatch.