Volume Profile Node
Price-Level Volume Distribution
Overview
Volume Profile shows the total volume traded at each price level over a period. Instead of showing volume over time horizontally, it displays volume vertically by price level. This reveals where the "battle" between buyers and sellers has been most intense.
Point of Control (POC) is the price level with the highest volume. High Volume Nodes are support/resistance areas. Low Volume Nodes (gaps) are weak areas where price quickly moves through. Volume Profile helps identify institutional support/resistance zones.
Key Concepts
Point of Control (POC)
The single price level with the highest total volume. Strong support/resistance.
High Volume Node (HVN)
Price levels with more volume than surrounding areas. Resistance/support zones.
Low Volume Node (LVN)
Price levels with less volume than surrounding. Fast-move zones where few shares traded.
Volume Extension
When price moves outside the profile range, it represents price discovery with new volume.
Parameters
| Parameter | Default | Description |
|---|---|---|
| pricePerRow | Auto | Price interval for each row in profile |
| rowCount | 100 | Number of rows to display in profile |
Common Use Cases
1. Finding Support & Resistance
The Point of Control (POC) and High Volume Nodes are strong support/resistance levels. Price reverts toward these zones repeatedly.
2. Identifying Quick-Move Zones
Low Volume Nodes are fast-move zones where few shares have traded. Price accelerates through these gaps with little resistance.
3. Divergence-Zone Analysis
When price leaves its initial range (Low Volume Node above), it's discovering new prices. Often extends into Low Volume Node areas.
4. Day-Trading Exit Points
Use Point of Control as natural exit target for profits. Price often reverts to POC at session end.
Advantages & Limitations
Advantages
- •Reveals market structure visually
- •Easy to identify high volume areas
- •Objective support/resistance mechanism
- •Useful for target setting and exits
Limitations
- •Primarily intraday tool (changes daily)
- •Requires intraday data/volume bars
- •Can be complex to set up correctly
Tips & Best Practices
💡 Track POC Changes
As new volume comes in, POC shifts. Monitor POC movement as early warning of trend changes.
📊 Combine with Time-Price
Use Volume Profile alongside market profile or time-price analysis for complete market structure understanding.
⚠️ Account for Volume Spikes
Volume profile is heavily influenced by singular large volume spikes. Understand the story behind the volume.