Lesson 05

Volume profile: POC, value area, high and low volume

A volume profile turns the volume bars on their side and stacks them by price. It shows where the market did most of its business, which is a cleaner map than where it happened to print a high or a low.

In one lineFat parts of the profile were accepted. Thin parts were rejected or passed through quickly.

The parts of a profile

POC, point of control. The price with the most volume. The market's fairest price for that period.
Value area. The band around the POC holding about 70% of the volume. Its top is the VAH, its bottom the VAL.
High-volume node (HVN). A fat area. Price was accepted here and tends to slow down when it returns.
Low-volume node (LVN). A thin area. Price moved through quickly and tends to move quickly again.

Amber is the POC row; the slate rows are the value area, the darker rows sit outside it. Hover a row to see its volume. Illustration from simulated prices, not a real session.

How traders use it

The value area is a map of where the market agreed on price. Edges of value are where you expect a reaction; the POC is where price tends to slow down. None of these are signals on their own. They tell you where to pay attention, not what to do.

Key terms

POCPoint of control: the single price with the most volume.

Value areaThe ~70% of volume around the POC; VAH on top, VAL below.

HVNHigh-volume node: accepted price, tends to slow price.

LVNLow-volume node: rejected or fast price, tends to be passed quickly.

Try it

Put a session volume profile on your chart. Mark yesterday's VAH, POC and VAL before today's open, then watch what price does the first time it reaches each.

AXIS Desk · AMT Fundamentals · free. Education only, not trade advice. Futures trading involves substantial risk of loss; past patterns do not guarantee future results.