What is the difference between Market Profile and Volume Profile?

Market Profile is different than Volume Profile, although many places and people will use the terms interchangeably. Market Profile is a more precise and definitely more distinct form of VAP analysis, as you will see.

What is Volume Profile?

Volume Profile is a trading tool that displays trading activity over a specified time period at certain price levels. It illustrates where traders are committing to positions and helps identify key price levels of interest. The Volume-at-Price metric indicates the amount of volume traded at each price level.

What should traders look for in a volume profile?

Traders should also be on the lookout for volume gaps or anomalies that may signal shifts in market sentiment. Combining Volume Profile with other technical analysis tools can help confirm trading signals, while regularly monitoring volume dynamics keeps traders updated on market activity.