A volume profile shows how much volume traded at each price (not over time). The Point of Control (POC) is the price with the most volume — the strongest magnet on the chart — and the Value Area holds roughly 70% of the volume.
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Volume by price, not by time
A normal volume bar chart shows volume per candle (over time). A volume profile flips it sideways: it shows volume per price level. That reveals where the market spent the most effort agreeing on value — and where it didn't.
POC and Value Area
The POC is the most-traded price — a strong magnet and support/resistance. The Value Area is the band (about 70% of volume) where most business got done. Price leaving the value area and then returning is common; the edges (VAH/VAL) act as decision points.
High- vs low-volume nodes
High-volume nodes (fat bars) are areas of agreement — price tends to stick and react there. Low-volume nodes (thin bars) are areas of disagreement — price tends to move through them fast. Knowing which is ahead tells you whether to expect a grind or a glide.
Quick check — there's a thin, low-volume gap just above price. What's likely if price enters it?
Key takeaways
- Volume profile = volume by price, not by time.
- POC = most-traded price = strongest magnet; Value Area ≈ 70% of volume.
- High-volume nodes stall price; low-volume nodes let it glide through.
FAQ
What is a volume profile?
A volume profile shows how much volume traded at each price level, rather than over time. It reveals where the market spent the most effort agreeing on value (high-volume nodes) and where it didn't (low-volume nodes), which act as support/resistance and acceleration zones respectively.
What is the Point of Control (POC)?
The Point of Control is the price level with the highest traded volume on a volume profile. It is the strongest magnet on the chart and a key support/resistance level, because it marks where the most business was done.
What is the Value Area?
The Value Area is the price range that contains roughly 70% of the volume — where most trading occurred. Its upper and lower edges (VAH and VAL) act as decision points; price leaving and returning to the value area is a common pattern.
What's the difference between high- and low-volume nodes?
High-volume nodes are fat bars where lots of trading happened — price tends to stick and react there. Low-volume nodes are thin bars where little trading happened — price tends to move through them quickly, so moves can accelerate.