Page 95 - A Complete Guide to Volume Price Analysis: Read the book then read the market

And here it is! As you would expect the volume at price profiles have now changed, as we are seeing heavy volumes coming into the market, as
evidenced on both the VAP and also on our traditional volume bars at the bottom of the chart. This once again demonstrates the power of volume
at price analysis. Not only are we seeing a potential support region being built visually, we are also seeing this validated in our volume bars at the
bottom of the chart, and when we begin to analyse this with our price spread, a complete story of price action backed by volume is created. It still
defeats me as to how anyone can ever trade without using volume, and I hope fervently that by now I have convinced you to at least consider it as
one of, if not the only one of, your analytical techniques. I sincerely hope so.

Just to round off this chapter, let's take a look at some other examples of VAP.

Fig 9.14 Alcoa (AA) – Hourly Chart

Fig 9.14 is a really interesting chart. It's an hourly chart this time for Alcoa, but look at the huge volume spike in the centre of the volume at price
histogram. It is enormous, and more importantly is right in line with the current price action which is in congestion. The market has traded in this
range before, and clearly this represents a very significant area of price consolidation as evidenced by the VAP. As you can see, in the past few
hours the market has rallied and attempted to breach this level, but failed. And no wonder, given the volume profile on the left of the chart in the VAP
histogram. At this point we would be moving to our traditional Volume Price Analysis to look for anomalies and validation, which may well confirm
this view, and suggest that any break out is likely to be to the down side.