By highlighting volume build-ups, fall-offs, and areas of value such as HVNs (High Volume Nodes) and LVNs (Low Volume Nodes), the Volume Profile shows where value is located in the market.
The price is likely to react in sensitive areas, such as build-ups and fall-offs/tapers. These areas are ledges or shelves real extremes not VAH, VAL and POC these change as price moves like a lagging indicator so these can help you build a real edge.
Simpler view above
Simpler view above
The shelf is everything in between the lines, which represent the ledges, or the extremes of the shelf.
It's actually pretty straightforward; it's just the beginning of the fade-away or build-up to the end.
Once more, shelves and ledges are important places for the price to move. You should trade them when the confirmation is correct, and I would advise combining them with other levels, such as VWAP(which I will explain later).
If you have any questions always send a dm through discord.
**https://discord.gg/Mx95Dk99YE and join the server.**