Read the Horizontal Volume Profile Indicator in Midas Up

How the volume profile appears on the chart

The horizontal volume profile identifies the most important areas where large buyers and sellers were most active:

• Bright purple zones are large volumes of trading, horizontal shelves: places where large players opened many positions, areas of interest and struggle.
• Dark purple zones are voids: places where the price slipped quickly without resistance.
• Long Arrows at Maximum Volume (Point of Control): Strong levels that act as a magnet for large players.
• Long arrows in the voids indicate the boundaries of the trading zones - weak levels, from which you can also expect a rebound, but with less probability.

What it looks likeLarge volume shelfA small shelf.

The general view of the volume profile on the graph: bright shelves, dark voids and POC arrows.

In this example, price formed a large horizontal volume shelf, approached it and then fell sharply after rebounding.

The example shows small shelves, from which you can also expect a rebound.

How to use volume shelves

Price often moves from one liquidity area to another. Large participants cannot open or close their trades all at once because the order book lacks enough liquidity, so they build and close positions in parts around areas of maximum horizontal volume and may move price toward them.

Identifying horizontal volume correctly helps you find important market areas, entry points and places to take profit:

• High horizontal volumes are key levels with maximum liquidity, which act as support and resistance.
• Price levels with low volumes are “emptiness” where the price can move faster without encountering resistance, as if slipping.
• When price approaches the POC, watch where it holds: above it supports a bullish scenario; below it supports a bearish scenario.
• Open positions from maximum-volume shelves, not while price is inside a shelf.
• Consider taking profit as price approaches the POC of a large volume shelf.

🔴 Bounce into a short trade🟢 Bounce into a long tradeRebound from POC

In this example, a horizontal volume shelf prevents price from rising. After a rebound from the shelf, price falls with brief pauses at smaller shelves.

For example, a large horizontal shelf of volumes keeps the price from falling - as a result, the price has rebounded from this level several times in a row.

In the example of a strong resistance level coincides with the POC of the horizontal shelf volumes - as a result, the price has rebounded from this level twice.

Bounce and breakout at a volume shelf

Trading from horizontal volume shelves is one of the most popular strategies in trading, which is ideal even for beginners due to clear entry points, stops and goals:

• Rebound trading: in a weak trend or sideways market, find the POC of a large or maximum-volume shelf, wait for price to react and trade in the direction of the rebound.
• Breakthrough trading: with a strong trend, wait for the shelf to break through and at the POC retest (return the price to the broken shelf with a bounce) open the deal in the direction of breakdown.

A simple volume-profile workflow

Use the horizontal volume profile together with signals: when price bounces upward from a shelf, wait for a Buy signal before considering a long; when it bounces downward, wait for a Sell signal before considering a short.

• The larger the size of the horizontal shelf, the higher the chance of rebound.
• It works best in the trend direction and in sideways markets on higher timeframes.
• Experienced traders can open trades earlier without waiting for the signal.