Volume Profile

Name Type Prerequisite Use Cases
Volume Profile (VP) Volume/Structure Price & Volume Identifying High Volume Nodes (HVN) as support/resistance.

Definition

Volume Profile displays the trading activity (volume) over a specified time period at specified price levels. It reveals the most traded prices (Point of Control) and the value area.

Special cases

  • Maximum possible value: Unbounded
  • Minimum possible value: 0
  • Behavior: Displays trading activity over a specified time period at specified price levels (plotted on the Y-axis).

Visualization

(Placeholder: Volume Histogram on Y-axis)

Trading Significance

  1. Support/Resistance: High volume nodes act as strong support/resistance.

  2. Fair Value: The Point of Control (POC) represents the market's consensus on "fair value."