Volume Profile
A histogram of traded volume at each price level over a period, revealing where the market has done the most and least business.
Volume Profile rotates the standard volume histogram 90° and plots it against price rather than time. The result shows the exact price levels where the most contracts or shares changed hands.
Key concepts within Volume Profile:
- Point of Control (POC): the single price level with the highest traded volume — acts as a magnetic level.
- Value Area (VA): the price range containing 70% of total traded volume — the market's accepted fair value zone.
- Low Volume Node (LVN): thin areas price moved through quickly — often act as launching pads for fast moves.
- High Volume Node (HVN): areas of heavy acceptance — price tends to rotate within them.