Volume Profile is a new approach to technical analysis! Steidlmayer, the author of Trading with Market profile has been widely attributed to developing the concepts of volume profile trading.
One of the major claims of using volume profile strategy is that allows you to build the market concept based on the study of volumes printed on the y-axis on the price chart.
Volume as an indicator is not uncommon. It is commonly used during the technical analysis of a stock chart. Volume is also widely prevalent in forex trading as well.
However, for the most part, the volume is confined to the x-axis. The volume indicator basically shows the number of transactions that take place during a session. Based on whether the price was bullish or bearish, the volume bars are painted accordingly. This is known as a volume profile or market profile.
The following next three articles are basically an archive of old discussion where we have discussed the basics with couple examples!