Let's understand one tool that many traders underestimate. I'm talking about VPVR, or Volume Profile Visible Range. When I first started trading, I didn't understand for a long time why the price bounces off certain levels. Then I realized that instead of looking at time, you should look at the volume at price levels.

Here's the essence. VPVR shows where the largest trading volumes accumulated on the chart. If a regular volume histogram runs down over time, then VPVR extends this information along the price axis. It turns out that you can see at which levels there was a lot of trading and at which levels there was little.

Why is this needed? First, it helps find the real support and resistance levels. Not the ones you draw arbitrarily, but where a lot of trades actually happened. Second, it shows the market psychology. If the price lingered around a level with high volume for a long time, it means there was a battle between bulls and bears.

In VPVR, there are several key elements. Point of Control, or POC, is the level with the maximum volume. Usually, this is a strong support or resistance. Then there are High Volume Nodes, areas where the price spent time and encountered many orders. And there are Low Volume Nodes, empty zones through which the price can pass quickly, like a knife through butter.

I often use VPVR to find entry points. If I see the price approaching a High Volume Node, I wait for a bounce or a breakout with good volume. Low Volume Nodes help me understand where the price might accelerate. This is especially useful for short-term trading.

There are many examples. For instance, the price drops, approaches a level with high volume from the past, and I wait for a bounce. Or, conversely, we see a breakout through a Low Volume Node with increasing volume, which could be the start of an impulse. The main thing is that VPVR gives me objective data, not just my assumptions.

Another point. VPVR helps identify consolidation zones. If the price moves sideways for a long time with high volumes, it indicates uncertainty. When the price exits such a zone, a good move usually follows.

But it's important to remember that VPVR is not a panacea. It's best to combine it with other technical analysis tools. Look at candles, trends, levels. VPVR provides only one part of the picture, albeit an important one. Use it as part of your system, not as the sole signal for entry.

In general, when you start working seriously with volumes, trading becomes more logical. Instead of guessing why the price bounced, you see that there was a wall of orders. That's why I recommend every trader to get familiar with VPVR and volume analysis in general.