Volume Profile Visible Range
An indicator to visualise price entries
So what is the Volume Profile Visible Range (VPVR)?
It would be classified as a volume profile tool most traders use. It appears next to price levels as a histogram. It displays the volume traded at a given price level within a period of time.
... and so what?
Well when used in the right conditions this tool can show at which price points the highest volumes of an asset were traded. This can be a proxy for a price entry point.
... but how will you know if it's significant?
We can take volume nodes and measure the prominence. The prominence is defined as the vertical distance between the peak and its lowest contour line and could be seen as indicator of how significant a volume node is. Explanation
WTF does that even mean?
In the below example we can see the largegest prominence occurs at $35,801. We could say the most significant accumaltion occured at this price point in the past 365 days (shown by p=365d).
Okay, but can i do?
Trick question, I cant give you financial advice.😂 That being said, given the fundamentals of the asset class are secure it could be used as indicator for price entry.
- How far away from the most signficant volume node is the asset trading?
- Is a new signficant volume node forming?
Here are some crypto projects I have my eyes on 👀.
