How to Use the VRVP Tool – A Complete Guide for All Traders

The Visible Range Volume Profile (VRVP) is a powerful tool on TradingView that helps traders identify key price levels where significant trading activity has occurred. It offers a unique view of market structure by highlighting the volume traded at specific price points within the visible range of the chart. Understanding how to effectively use the VRVP can significantly improve your ability to identify important support and resistance levels, spot potential breakouts, and make better trading decisions. This comprehensive guide will take you through everything you need to know about the VRVP tool, including its features, setup, and how to use it in your trading strategy.

What is the VRVP Tool?
The VRVP (Visible Range Volume Profile) is a technical analysis indicator that shows the distribution of trading volume at different price levels within the visible range of your chart. Unlike traditional volume indicators, which show volume over time, the VRVP focuses on volume by price, allowing you to see where buyers and sellers have been most active. It is displayed as a horizontal histogram along the side of the price chart, with high-volume areas indicating key support or resistance levels and low-volume areas often signaling potential breakout points.

Why is the VRVP Tool Important?

• The VRVP tool provides several benefits to traders, regardless of their experience level:
  
• Identify Key Support and Resistance Levels: High volume nodes (HVNs) often act as strong support or resistance zones where price tends to stall or reverse.
  
• Spot High and Low Liquidity Areas: Low volume nodes (LVNs) can highlight areas where price may move more quickly due to the lack of market participants.
  
• Predict Breakouts and Reversals: By identifying volume concentration, you can anticipate areas where price may break out or reverse.
  
• Confirm Trends: By analyzing the Point of Control (POC), you can determine the market’s prevailing trend.
  
• Refine Entry and Exit Points: By combining the VRVP with other tools, you can pinpoint optimal entry and exit points for trades.
  

How to Add the VRVP Tool on TradingView
To start using the VRVP tool on TradingView, follow these steps:

• Open your TradingView chart.
  
• Click on the “Indicators” button at the top of the screen.
  
• Search for "VRVP" or "Visible Range Volume Profile" in the search bar.
  
• Click to apply it to your chart.
  
• Adjust the settings by clicking on the gear icon next to the indicator name.
  

Recommended Settings:

• Row Size: Set between 150-250 for more detail (more rows provide more granularity).
  
• Volume Area (%): Set to 70% to highlight where most trading activity has occurred.
  
• Color Up/Down: Choose contrasting colors for buying and selling, making it easy to distinguish between bullish and bearish zones.
  
• Point of Control (POC): Enable this to highlight the price level with the highest volume.
  

How to Read the VRVP Tool
The VRVP tool consists of three key components:

• High Volume Nodes (HVN): These are price levels where a lot of trading activity has occurred. They often act as strong support or resistance, and the price may bounce off these levels multiple times.
  
• Low Volume Nodes (LVN): These are areas with little trading activity. Prices tend to move quickly through these zones as there are fewer market participants. They often indicate potential breakout or breakdown points.
  
  VAL and VAH
  VAH (Value Area High)
  
• Definition: The VAH is the price level at the upper boundary of the Value Area. The Value Area represents the range where a set percentage (usually 70%) of all trading volume has occurred within the visible range.
  
• Significance: The VAH is the price point at which the volume profile starts to show less concentration of volume. It is a level above which price has shown less activity compared to the Value Area. When price approaches or breaks through the VAH, it often signals potential resistance and could be a critical level to watch for a reversal or continuation.
  
  VAL (Value Area Low)
• Definition: The VAL is the price level at the lower boundary of the Value Area. It represents the lowest price point where around 70% of all the trading volume has occurred within the visible chart range.
  
• Significance: The VAL is a key support level, as it marks the price level where most trading volume has taken place on the downside. A price approaching or breaking below the VAL can signal potential support or a breakdown, indicating where buyers and sellers are actively engaging.
  
  How VAH and VAL Work Together
• Value Area: Together, the VAH and VAL define the Value Area, which contains the range of price levels where the majority of trading volume took place. In a healthy market, the price tends to stay within this area. If price breaks out of the Value Area, it could indicate the start of a strong price move in that direction (either upward or downward).
  
  Relevance in Trading: The VAH and VAL act as key levels for traders to monitor:
• Above VAH: Price moving above the VAH suggests bullish sentiment, with the next resistance potentially forming above the VAH.
  
• Below VAL: Price moving below the VAL suggests bearish sentiment, with the next support potentially forming below the VAL.
  

Example of the VAL and VAH:


Point of Control (POC):
This is the price level with the highest trading volume within the visible range. The POC is often used as a key reference point for future price movements. If the price is trading above the POC, it suggests bullish market sentiment; if below, it suggests bearish sentiment.

Example of the POC level:


How to Use the VRVP Tool in Trading
Identifying Support and Resistance Levels

• High Volume Nodes (HVNs): These levels often act as support or resistance. When price approaches an HVN, it is likely to either reverse or consolidate before moving further. If the price is above an HVN, that level may act as support, while if it's below, the level may act as resistance.
  

Spotting Breakout Zones

• Low Volume Nodes (LVNs): These are areas where price can break out or move rapidly due to the lack of significant trading activity. If price enters an LVN, it may continue moving in the direction of the breakout with minimal resistance.
  

Using the Point of Control (POC)
The POC acts as a market balance point where the most volume has been traded. If the price is trading above the POC, it signals a bullish market trend, and if below, it signals a bearish trend. Watching the POC can help you gauge the overall market sentiment and potential future price movements.

here is another example of the POC


Confirmation with Other Indicators
To increase the accuracy of your trades, combine the VRVP with other technical indicators such as:

• Moving Averages (MA): These help confirm the trend direction and potential reversals.
  
• Relative Strength Index (RSI): This can identify overbought or oversold conditions, which can be used in conjunction with the VRVP to confirm price action.
  
• Candlestick Patterns: Look for reversal or continuation patterns at key volume levels.
  
• Trendlines: Use trendlines to confirm whether price is bouncing off or breaking through key support or resistance levels.
  

Example Strategy
Step 1: Use the VRVP tool to identify a high volume node (support zone).
Step 2: Check the RSI to see if the market is oversold.
Step 3: Wait for a bullish candlestick pattern (such as a bullish engulfing or hammer).
Step 4: Enter a buy trade with a stop loss placed below the low volume node, which serves as a breakout or breakdown zone.

How to Plan Trades with the VRVP
Here are some scenarios you might encounter when using the VRVP tool:

• Price near HVN (Support): Buy with a stop loss placed just below the HVN, as it is likely to act as support.
  
• Price near LVN: Wait for confirmation of a breakout or rejection before taking a position, as price may move rapidly through this area.
  
• Price at POC: Look for reversal or breakout signals. If the price is near the POC, the market may change direction or continue in the current trend.
  
• Price above POC: This indicates a bullish trend continuation. Look for buying opportunities.
  
• Price below POC: This indicates a bearish trend continuation. Look for selling opportunities.
  

Tips for Beginners

• Wait for Confirmation: Always wait for confirmation from price action, other indicators, or candlestick patterns before entering a trade.
  
• Combine with Trend Indicators: Combine the VRVP with trend indicators such as moving averages to ensure you’re trading in the direction of the overall trend.
  
• Use Volume Spikes: Look for volume spikes alongside the VRVP to confirm breakouts.
  
• Practice First: Start using the VRVP tool on a demo account before risking real money to get a feel for its nuances.
  

Tips for Experienced Traders

• Use Multiple Timeframes: Use the VRVP tool on both longer (daily) and shorter (hourly) timeframes to identify the strongest support and resistance levels.
  
• Track the POC Shifts: Observe how the POC moves over time. An upward shift suggests a bullish market, while a downward shift suggests a bearish market.
  
• Combine with Fibonacci Retracements: Combine the VRVP with Fibonacci retracement levels to identify confluence zones, where high volume areas coincide with Fibonacci levels, increasing the likelihood of price reactions at these levels.
  

Conclusion
The VRVP tool on TradingView is a versatile and powerful tool that offers valuable insights into market structure by analyzing trading volume at different price levels. By understanding how to read and use the VRVP tool, you can identify key support and resistance levels, predict potential breakouts, and refine your entry and exit strategies. Whether you’re a beginner or an experienced trader, the VRVP can be a valuable addition to your trading toolkit.

Start practicing on a demo account and gradually incorporate the VRVP tool into your strategy. With time and experience, the VRVP will help you gain a deeper understanding of market dynamics and improve your overall trading performance.

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I hope you found this guide on the VRVP tool helpful and that you’ve gained some valuable insights to improve your trading strategy. If you learned something new, don’t forget to give a like! If you have any questions or need further clarification, feel free to leave a comment below. I’d be happy to help!