What is volume profiling?

[Anne]

Volume Profiling refers to an advanced charting study used to show trading activity spanning a particular trading and price levels. Also referred to as volume by price, it helps to display the amount of volume occurring at certain price levels and range as opposed to most volume indicators that display volume based on a certain time frame. On a trading chart, the Volume Profile is represented by horizontal bars which are shown on the right corresponding to each price. When volume and price are combined the trader is able to identify high volume price ranges thus indicating support and resistance.