
A volume profile strategy analyzes the distribution of trading volume at specific price levels over a set time period to identify areas of high liquidity and market interest. It highlights key price zones such as the Point of Control (POC) and Value Areas, where most trading activity occurs. Traders use this information to determine support and resistance levels, entry points, and potential reversal zones. Unlike traditional volume indicators, volume profile provides a visual snapshot of where buyers and sellers have been most active. This strategy is particularly useful in futures and forex markets and helps traders make decisions based on actual market behavior rather than just price movement. It promotes a deeper understanding of market structure and is valued for its clarity in identifying high-probability trade setups.