An approach to using volume profiles for algorithmic trading

When trading in markets such as equities or currencies it is important to identify value areas to inform our trading decisions. One way to do this is by looking at the volume profile.

In this post, we explore quantitative methods for examining the distribution of volume over a period of time.

More specifically, we’ll be using Python and statistical and signal processing tools in SciPy’s suite of modules. Data plots are rendered with Plotly.

How do we use volume?

This post covers the concept of volume profiles and how to trade them.

In short, volume conveys the amount of assets transacted during a period of…

Minh Nguyen

Software Engineer. Problem solving enthusiast. www.lucrumlabs.com

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