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Why Volume Profile Needs Context

Sachin Yadav

A high-volume node can represent an area where substantial trading took place. A low-volume node can mark an area where relatively little trading occurred.

These areas can help me understand where the market previously spent time and where price moved through more quickly.

But a high-volume node isn't automatically support, and a low-volume node isn't automatically resistance.

I combine profile levels with current price behavior and order flow rather than assuming historical volume determines the next move.

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