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Technical Indicators

Volume Profile

A chart study showing volume traded at each price level, revealing where the most activity occurred.

What is Volume Profile?

Volume profile displays the amount of volume traded at each price level over a specified period. Instead of showing volume per time period (like traditional volume bars), it shows volume per price level as a horizontal histogram.

Key concepts

  • Point of Control (POC): the price level with the highest volume, acts as a magnet for price
  • Value Area: the range containing 70% of the volume (Value Area High and Value Area Low)
  • High Volume Nodes (HVN): price levels with lots of activity, act as support/resistance
  • Low Volume Nodes (LVN): price moves quickly through these areas

Related Terms

Relative Volume (RVOL)

A ratio comparing the current trading volume to the average volume over a lookback period, typically 10 or 20 days. An RVOL of 2.0 means twice the normal volume.

Supply and Demand Zones

Price areas where imbalances between buyers and sellers caused sharp moves: stronger than traditional support/resistance.

VWAP

Volume Weighted Average Price: the average price weighted by volume throughout the trading day.

Volume

The total number of shares traded during a given period. High volume confirms price moves.