> For the complete documentation index, see [llms.txt](https://faq.midas-club.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://faq.midas-club.com/faq-en/faq-midas-up/horizontal-volume-profile.md).

# Horizontal volume profile

<table data-card-size="large" data-view="cards"><thead><tr><th></th><th data-hidden data-card-cover data-type="image">Cover image</th></tr></thead><tbody><tr><td>How horizontal volume works:
<br>➡️<a href="https://youtu.be/7Ppgs3CG0ZA">Watch on YouTube</a>
<br>➡️<a href="https://vkvideo.ru/video-228172732_456239137">Watch on VK</a></td><td><a href="/files/0dbeb4b418e49ed5434e0f19e1cd4e068ec161bb">/files/0dbeb4b418e49ed5434e0f19e1cd4e068ec161bb</a></td></tr><tr><td>How to trade from horizontal shelves:
<br>➡️<a href="https://youtu.be/xFArk4Azors">Watch on YouTube</a>
<br>➡️<a href="https://vk.com/video-228172732_456239139">Watch on VK</a></td><td><a href="/files/b2acf4ca5684d53109ca343a69b46abc86b4b6c7">/files/b2acf4ca5684d53109ca343a69b46abc86b4b6c7</a></td></tr></tbody></table>

## Chart notation

The horizontal volume profile allows traders to accurately identify the most important zones where the greatest activity of large buyers and sellers took place:

* <mark style="color:purple;">**Bright purple**</mark> zones show large traded volumes (horizontal shelves) - places where big players opened many positions, certain zones of interest or struggle
* <mark style="color:blue;">**Dark purple**</mark> zones show voids - places where price quickly slipped through without resistance
* Long arrows at the maximum horizontal volumes or <mark style="color:purple;">**POC**</mark>**&#x20;(Point of Control)** - strong levels that act as a magnet for large players
* Long arrows in voids show the boundaries of trading zones - weak levels from which a bounce can also be expected, but with lower probability

{% tabs %}
{% tab title="Notation" %}

<figure><img src="/files/d70ff505ab93e766aee9efa0832032fcf06c22bb" alt=""><figcaption></figcaption></figure>
{% endtab %}

{% tab title="Large volume shelf" %}

<figure><img src="/files/c9aa9bb55f9f1940da78dbd82ec701e0fbd617c1" alt=""><figcaption></figcaption></figure>

In the example, we can see how price formed a large horizontal volume shelf, approached it, bounced, and then moved sharply lower.
{% endtab %}

{% tab title="Small volume shelf" %}

<figure><img src="/files/a8cb92f22fbcc5c5fd65b26dffbfb03f42a2c7ba" alt=""><figcaption></figcaption></figure>

In this example, we can see small shelves from which a bounce can be expected.
{% endtab %}
{% endtabs %}

## Application in trading

Price always moves from liquidity to liquidity - whales cannot open or close their trade all at once - they do not have enough liquidity in the order book, which is why they build up and close positions in parts in zones of maximum horizontal volume accumulation - that is where they move the price!

Proper identification of horizontal volume will help you spot important market zones and find the best entry and profit-taking points:

* <mark style="color:purple;">**High horizontal volumes**</mark> - these are key levels with maximum liquidity that act as support and resistance
* <mark style="color:blue;">**Price levels with low volume**</mark> - these are "voids" where price can move faster without encountering resistance, as if slipping through
* When price approaches <mark style="color:purple;">**POC**</mark>, you need to watch where it settles - if above, the scenario is bullish; if below, the scenario is short
* It is better to open positions from the maximum trading shelves, but not "into the shelf"
* You should also take profit when price approaches <mark style="color:purple;">**POC**</mark> large volume shelves

Trading on horizontal volume shelves is one of the most popular strategies in trading, and it is ideal even for beginner traders thanks to clear entry points, stops, and targets.

* Bounce trading - in a weak trend or sideways market, find <mark style="color:purple;">**POC**</mark> a large or maximum volume shelf from which there will be a reaction, wait for the bounce to start and enter in its direction&#x20;
* Breakout trading - in a strong trend, wait for the volume shelf to be broken, and on the retest <mark style="color:purple;">**POC**</mark> (return to the broken shelf and bounce) enter the trade in the direction of the breakout

{% hint style="success" %}
First of all, try the simplest [horizontal volume trading strategy](broken://pages/0e079cf820f867cc577b738bbebf9c43e290c49b#strategiya-torgovlya-ot-polok) from the indicator developer
{% endhint %}

{% tabs %}
{% tab title="Short bounce" %}

<figure><img src="/files/082f43e6077556c6783e7190a0cff23b68cd36a1" alt=""><figcaption></figcaption></figure>

In the example, we can see how a horizontal volume shelf holds price from rising, then we got a bounce off the shelf and a further drop with small pauses on smaller shelves.
{% endtab %}

{% tab title="Long bounce" %}

<figure><img src="/files/ae144f5746f18411bef0495fd8eaa7d01db2c2b2" alt=""><figcaption></figcaption></figure>

In the example, we can see how a large horizontal volume shelf holds price from falling - as a result, we got a price bounce from this level several times in a row.
{% endtab %}

{% tab title="Bounce off POC" %}

<figure><img src="/files/a02e18b8f00837f81437addc616975c37c45d94d" alt=""><figcaption></figcaption></figure>

In the example, we can see how a strong resistance level coincides with <mark style="color:purple;">**POC**</mark> a horizontal volume shelf - as a result, we got a price bounce from this level twice.
{% endtab %}
{% endtabs %}

## How to trade from horizontal volume

<div align="left"><figure><img src="/files/811c48214ea434736d64c730a7ee025aba5cfe4f" alt="" width="563"><figcaption><p>Example of trading a signal within a bounce from a horizontal volume shelf</p></figcaption></figure></div>

We use **horizontal volume profile** and signals:

-when price bounces up from the shelf, we wait for a signal <mark style="color:green;">**BUY**</mark> and open <mark style="color:green;">**a long**</mark>

-when price bounces down from the shelf, we wait for a signal <mark style="color:red;">**SELL**</mark> and open <mark style="color:red;">**a short**</mark>

💡The larger the horizontal shelf, the higher the chance of a bounce

💡It works best in continuation of the trend and in sideways movement on higher time frames

💡Experienced traders can open trades earlier, without waiting for the signal

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