Indicators / Volume / Volume Profile
Volume Profile Explained: POC, Value Area and Volume Nodes
Quick answer
Volume Profile shows how much volume traded at each price, as a sideways histogram. The Point of Control (POC) is the busiest price, the Value Area holds about 70% of volume, and high-volume nodes tend to act as support and resistance while low-volume nodes are areas price moves through quickly.
Video: Volume Profile for Beginners.
What Volume Profile measures
Normal volume bars show how much traded in each period of time. Volume Profile turns that sideways to show how much traded at each price level, which reveals the prices the market accepted and the ones it rejected.
The key levels
| Level | Meaning |
|---|---|
| Point of Control (POC) | The price with the most volume; the market's fairest price for that period |
| Value Area High / Low | The range holding about 70% of volume |
| High Volume Node (HVN) | Heavily traded price; tends to slow price down |
| Low Volume Node (LVN) | Lightly traded price; price tends to move through fast |
Settings
Choose the range the profile covers: a fixed range (one swing or range), a session (one day), or the visible chart. The Value Area is usually set to 70%.
How to read Volume Profile
1. Inside or outside value
Price inside the Value Area is in balance. A move outside it that holds suggests a new trend; a move outside that quickly returns often travels back to the POC.
2. Nodes as levels
High-volume nodes act as support and resistance because many positions were opened there. Low-volume nodes are gaps price tends to cross quickly.
3. The POC as a magnet
In ranges, price often returns to the POC. In trends, a POC that keeps shifting in the trend's direction confirms it.
Common mistakes
- Using the wrong range. A profile across two different market phases blends them into nonsense.
- Treating levels as exact. Nodes are zones.
What to pair Volume Profile with
- Pivot points for time-based levels.
- OBV for volume trend.
- Fibonacci where retracement levels meet volume nodes.
Volume Profile FAQ
What is the Point of Control?
The price with the most traded volume in the profile's range, often a magnet in ranging markets.
What is the Value Area?
The price range containing about 70% of the volume, showing where the market accepted value.
Does Volume Profile work on stocks and crypto?
Yes, especially for finding support and resistance from where volume actually traded.