EUR/AUD How To Trade The Double Distribution Profile 🤷

Volume Profile histogram has a few basic shapes it can develop into. Their names are based on their looks. We have the “b-shaped profile” which is shaped like a letter “b”, we have a “D-shaped profile”, which looks like the capital letter D, there is also the “p-shaped profile” which looks like the letter “p”, etc…

I talked more in detail about those in the Volume Profile For Beginners Guide.

Today, I would like to talk about the “Double-distribution” profile.

The main feature of this profile shape is that it has two significant volume areas. One at the top, and one at the bottom.

“Double distribution” → “D-shaped” profile
The “Double-distribution” profile very often turns into a “D-shaped” profile. This means that the thin Volume area which is in between of the two heavy volume areas gets filled with volumes.

In order for this to happen, the price needs to react to the two heavy volume areas and bounce off them inwards – towards the center of the “Double-distribution” profile.

The price has a tendency to stay in that center. This is when the heavy volumes get placed there and the “Double-distribution” starts to turn into a “D-shaped profile”.

How to profit on the “Double-distribution” profile?
Since the “Double-distribution” tends to transform into “D-shaped” profile, the two heavy volume areas at the top and at the bottom work as Support and Resistance zones. From there the price tends to go inwards towards the center.

That’s how you trade the “Double-distribution” Volume Profile shape: Short from the upper volume zone, and Long from the lower volume zone.

I hope you guys liked this article! Let me know what you think in the comments below.

Happy trading!

-Dale