Volume Profile

How Volume Profile is calculated

Volume Profile splits a chosen range into price levels and adds up all the volume traded at each one, then draws those totals as horizontal bars. The widest bar marks the point of control, and the band holding most of the volume, usually about 70 percent, is the value area.

How Volume Profile is used

• →Treat the point of control, the price with the most traded volume, as a magnet and a key support or resistance level.
• →Use the value area, where most volume traded, as a fair-value zone that price often returns to.
• →Read high volume nodes as prices where moves tend to stall and low volume nodes as gaps price travels through quickly.
• →Anchor the profile to a session, a swing, or a range, depending on what you are studying.

Common mistakes

• ✕Reading the profile as a timing signal instead of a map of where value sits.
• ✕Anchoring it over the wrong range, which hides the levels that actually matter.

Watch: Volume Profile explained