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Volume Profile: Track Order Flow on Your Trading Charts

Included with NinjaTrader’s Order Flow + suite of premium features is an Order Flow Volume Profile indicator. This powerful tool allows traders to analyze volume over price to identify support and resistance levels. Additionally, users can utilize multiple display modes for several unique views of order flow trading activity.

What is Volume Profile?

Volume Profile is an advanced charting study which displays the concentration of volume distributed among specific price levels to visualize the order flow. Different views of the Volume Profile provide unique, customizable visualizations which can be beneficial for identifying significant price levels, tracking momentum and finding the most active trading times during a session.

To effectively interpret a Volume Profile, it is important to understand its components.

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  1. Profile: Overlaid behind the vertical price bars, each blue horizontal bar represents the profile at its particular price level. Multiple price levels can be aggregated by using the “Ticks per level” parameter.
  2. Range: The range is defined by the highest and lowest price within the profile.
  3. Value Area: This is the range within the profile with the most volume traded (68% by default). The Value Area is differentiated from the rest of the profile with opacity settings. In this case, the Value Area is a brighter blue than the areas of the profile above and below it.
  4. Point of Control: The Point of Control (POC) is the single largest data point in the profile. This is the price level where the highest concentration of volume took place within a session.
  5. Profile Summary: This tallies the total volume and range of a volume profile.

Volume Profile Indicator

NinjaTrader’s Volume Profile indicator displays historical volume data and builds a profile based on the concentration of volume at specific price levels. The tool allows users to plot volume, delta, ticks or price and also displays point of control and value areas.

Customize the Volume Profile Visualization

Multiple display modes are available with each providing a unique cross section of volume over price activity. Additional customization options such as color and opacity allow users to further modify this indicator to suit their preferences.

  • Standard is a single defined color profile, which displays volume-by-price information. By default, the opacity of value area is higher than the sections above and below.

  • Buy Sell displays the same volume information as the Standard mode, but separates the buy volume from the sell volume by way of color coding.

  • Delta displays the standard volume profile and also overlays buy/sell delta data, highlighting the imbalances in buy/sell volume.

  • Heat displays as a gradient of color, indicating the highest and lowest volume areas.

  • Outline displays a more minimal profile, with just the outline being plotted.

  • Time Color separates the volume profile data into half-hour sections, plotting a new color every 30 minutes.

In addition to the display modes, there are also three distinct volume profile modes: volume, price and tick.

Volume profile is available both as an indicator and a volume profile drawing tool which quickly applies a single profile to a chart.

Current NinjaTrader users can get started with Volume Profile and the rest of the Order Flow + suite today: Learn More

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