Add the Volume Profile Indicator

• Click the link below.
• Bottom-left, hit “Add to chart.”
• Important: You cannot find this in the Indicators tab. It only adds from this link.
  https://www.tradingview.com/script/BrAQ8lUR-THT-Volume-Pro/
  
  
  
  

THT Volume Profile Indicator — Standard Operating Procedure

Objective:

To teach traders how to set up, read, and trade with the THT Volume Profile Indicator, using it to identify high-probability support/resistance zones, breakout targets, and optimal add/scale-out levels.

1. Core Principles

The Volume Profile shows where the most trading activity has occurred over a selected range, not just when it happened.

Instead of measuring volume by day or bar, it maps volume directly onto price levels, revealing institutional positioning over time.

Why This Matters for Our Strategy:

• Big players accumulate and distribute at specific price levels, not random points in time.
• These levels often become the most important support and resistance areas on your chart.
• Understanding where the bulk of trading occurred gives you an edge in predicting where price will react.

2. Indicator Setup

Settings (THT Standard):

• Lookback: 150 bars on any timeframe (industry standard)
• Columns: 35
• Value Area %: 70%
• Histogram Width: 24 bars
• Direction: Into chart (left)
• Color scheme: keep value area visible, POC in red

3. Key Components

Volume Blocks

• • Thick Blocks:Represent heavy buying/selling interest
  • Act as strong support when price is above, strong resistance when below
  • Price often consolidates or reverses at these zones
  • Thin Areas (Low Volume Nodes):Represent low activity zones — “air pockets” in price action
  • Price moves through these quickly, often with large candles
  • Think of them as “fast lanes” where price accelerates like a hot knife through butter

Once the thick block if swept, that thin volume pocket fills quickly. 

POC — Point of Control

• Definition: The red horizontal line on the Volume Profile, marking the price level with the highest total traded volume in the lookback period
  • Why It Matters:Acts as a magnet for price — strong tendency to pull price back toward it
  • Serves as a major support in uptrends, major resistance in downtrends
  • The larger the timeframe, the stronger the POC level

4. Timeframe Impact

• • Higher Timeframes (Weekly, Monthly):POC and volume blocks carry more weight
  • Levels become institutional reference points
  • Lower Timeframes (Intraday):Good for scalping or day trading around intraday supply/demand
  • Less reliable for long-term swings unless aligned with higher timeframe levels

5. How to Trade with Volume Profile

A. Breakout Scenarios

• Thick volume blocks above = likely resistance
• Thin areas above = price can accelerate quickly until next thick block
• Target these thin → thick transitions for scaling out

Thick block of trading volume on TSLA daily as shown above. If this resistance block is taken out it should fill that volume gap quickly. Then, the block above at $240 will act as resistance.

Top block now becomes resistance. If the block breaks support, we will fill that downside volume gap just as fast as we filled it to the upside.

B. Pullback / Add Scenarios

• On pullbacks, thick volume blocks below act as buy zones in uptrends
• Align adds with SMZ levels when possible for confluence

C. Combining with THT SMZ & BX Trender

• Entry: SMZ entry with BX confirmation near or above a strong volume block support
• Exit/Scale Out: Into heavy volume resistance blocks, especially if BX Trender weakens
• Add: On pullbacks into a thick support block, confirmed by BX Trender HL

6. Risk Management Notes

• Don’t short directly into a major support block or buy directly into a major resistance block — wait for confirmation or a clean break/retest
• If price breaks through a thick block decisively, expect it to act as support/resistance flip on retests

7. Quick Workflow Checklist

Before Entry:

• [ ] Mark POC & major volume blocks on higher timeframe
• [ ] Identify thin areas where price may move quickly
• [ ] Align with SMZ/Fib zones for confluence
• [ ] Check BX Trender for confirmation

During Trade:

• [ ] Avoid holding through major volume block resistance without scaling out
• [ ] Watch POC reaction — strong rejections can be exit signals

After Trade:

• [ ] Log trades and note which volume profile levels were respected or broken

8. Key Edge

The THT Volume Profile gives you a map of where institutions are active, where price will likely stall, and where it will move quickly. Combining these insights with SMZ and BX Trender confirmation ensures you trade with both price AND volume context, giving you a significant edge over traders relying on price action alone.