This refers to resources, often in portable document format, detailing methods for analyzing market activity through the distribution of traded quantities at various price levels over a specified period. These resources typically outline techniques for identifying key support and resistance areas based on areas of high volume concentration. A common illustration involves examining a chart showing where the most buying and selling occurred during a particular session to predict future price movements.
The significance of these strategies lies in their capacity to provide a more nuanced understanding of market sentiment than traditional charting methods. By visualizing volume at each price point, traders can gain insights into areas where significant buying or selling pressure exists. Historically, these techniques have evolved from floor-based trading practices to digital applications, offering a structured approach to assessing market dynamics and informing trade decisions.
