Volume At Price

Volume At Price histogram is also known as “Volume Profile” chart. VAP shows total volume of trading that occurred at given price level. VAP is calculated from data bars that are currently visible.

Actual algorithm involves not ONE price but High-Low price RANGE.

 

Listen to What Volume Tells You!

There are 6 simple rules to learn in order to interpret price and volume movements:

1. Increasing volume on increasing price signals an acceleration in buying pressure and price advance.

2. Increasing volume on decreasing price signals an acceleration in selling pressure and price decrease.

3. Decreasing volume on increasing price indicates an easing in buying pressure and a leveling in price or price reversal.

4. Decreasing volume on decreasing price indicates an easing in selling pressure and a leveling in price or price reversal.

5. Higher than normal volume at price highs indicates selling into strength and a price ceiling.

6. Higher than normal volume at price lows indicates buying on weakness and price support.

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