#Liquidity101

Horizontal Volumes (Volume Profile) – your guide to liquidity!

Key points:

→ Shows liquidity concentration at specific price levels.

→ The higher the volume at a level, the stronger the market interest.

Also used for:

✅ Identifying key S/R (support/resistance) – levels with max volume often become strong barriers.

✅ Confirming signals (reversals, breakouts) from Price Action and other indicators.

✅ Analyzing consolidation – detecting price ranges where an instrument "accumulates volume".

✅ Finding entry/exit points – price movement toward high-volume levels often triggers orders.

Why traders need it:

✅ Locate liquidity zones – where price is more likely to pause or reverse.

✅ Combine with Price Action: volume levels complement support/resistance.

Caution:

⚠️ Signals may distort during volatility or flat markets.

Bottom line: A powerful tool to understand "where the money is," but requires practice.