Decode the Market with These 4 Volume Profile Shapes

Summary

You can decode market movements using four volume profile shapes. A D-shaped profile indicates a balanced market or a trend pause, often seen in sideways trading. A P-shaped profile signals buyers are in control, typically appearing in uptrends or at the end of downtrends. Conversely, a B-shaped profile suggests sellers are dominant, signifying a downtrend or the end of an uptrend. Finally, a thin profile points to a strong, aggressive trend where one side is completely dominating the market.