VAP analysis

D

davelansing2004

Has anyone used VAP as an analytical tool? I can see where it can be used to "determine" areas of high/low volume at any given price, but do the high volume areas truely act as support/resistance? any info would be much appreciated. Everytime i google "VAP" or "Volume-at-Price" I usually end up at sites regarding Market Profile..which i thought was different (time-segmented volume analysis with price).

Thanks in advance.

Dave
 
VAP and Time at price (Market Profile) are very similar. In other words volume at price is directly related to time at price. If price doesn't stay at a certain point for very long, it will not facilite much trade volume at that price.

I prefer VAP because I find it simplier than market profile but just as effective. They will yeild very similar support and resistance levels.

Runningbear
 
Kinda makes the definitions of S and R curve fitted. Too bad as the back testers might say.

What incites the smartest money making is not always the heavy hitters who step up the the plate much later.
 
Quote from Runningbear:

VAP and Time at price (Market Profile) are very similar. In other words volume at price is directly related to time at price. If price doesn't stay at a certain point for very long, it will not facilite much trade volume at that price.

I prefer VAP because I find it simplier than market profile but just as effective. They will yeild very similar support and resistance levels.

Runningbear
More...

Thanks runningbear.. would it be worth my while to read up on market profile, or do you know of a book/info that i can get my hands on regarding VAP? Right now I'm just studying charts with a VAP overlay (Amibroker) in order to develop a sense of where possible support/resistance will be..
 
Quote from Grob109:

Kinda makes the definitions of S and R curve fitted. Too bad as the back testers might say.

What incites the smartest money making is not always the heavy hitters who step up the the plate much later.
More...

Jack,

What do you mean? Is this in relation to evaluating "Dry Up" volume versus determining support/resistance off of heavy volume areas via VAP?


Thanks for your reply,

Dave
 
I recommend reading Mind Over Markets. Even if you never use Market Profile, I believe every trader should understand auction market theory, range extension, POCs, value areas etc. I believe it offers a solid framework for identifying the primary trend and where you are within it.


Also, do a search on Volume Profile at esignalcentral.com

Runningbear
 
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