Indicator | Technique
Volume Profile
"Volume Profile displays the distribution of traded volume by price level over a period, revealing value zones and the most significant support/resistance levels."
In-Depth Definition
Volume Profile is an advanced tool representing the horizontal distribution of volume by price level, unlike classic volume displayed by time period. Key zones identified include the Point of Control (POC) — the price level with the most volume traded —, the Value Area (VA) — the zone containing 70% of volume —, and the Value Area High/Low (VAH/VAL). Price tends to gravitate toward the POC and react at VAH and VAL. Low Volume Nodes (LVN) are areas of little activity that price traverses quickly (little resistance). High Volume Nodes (HVN) are areas of heavy activity acting as price magnets. Volume Profile is particularly used in futures and day trading.
StarQuant Insight
StarQuant can build dynamic Volume Profiles over custom periods (per session, per week, or anchored to an event) and automatically identify value zones to help place entries, stops, and targets more precisely.
Pro Tip
Pay close attention to Low Volume Nodes: when price enters one, it tends to move rapidly to the next HVN or POC. These zones are ideal for aggressive entries with tight stops.