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Sonarlab Volume Profile - A Complete Guide

July 29, 2023

Volume Profile is a tool that helps traders see how much trading happened at different price levels during a certain time period. It takes into account settings like the number of rows and time duration and creates a bar graph on the price chart. This graph shows which price levels were most traded, based on volume. Basically, it takes all the trades at a specific price level during the set time, separates them into trades that moved the price up and those that moved it down, and makes this info easy for the trader to see.

In SMC trading, we often focus on trading within ranges. To understand where most of the trading volume lies within these ranges, we use a tool called the Sonarlab SMC Volume Profile. This tool automatically displays the volume profile for the current range the market is trading in. It gives us crucial insights about trading activity in that range. Let's delve further into this.

Typical levels of significance

Point of Control (POC) – This shows the busiest area of a range, volume-wise. If this meets up with your order block, it's like a power-up for your order block. As show below you can see that the POC acted as support once it broke above.

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