Volume Analysis

Volume Profile and Value Area

Where the most business got done — a sideways view of volume that reveals real levels.

Most volume tools plot volume over time (bars along the bottom). Volume profile rotates the question 90 degrees: it shows how much volume traded at each price level, as a horizontal histogram up the side of the chart. This reveals where the market spent the most effort — which prices it considered 'fair' — in a way a time-based view cannot.

POC and value area

  • Point of Control (POC) — the single price with the most traded volume; the chart's centre of gravity, and a strong magnet/level.
  • Value Area — the price range (usually ~70% of volume) where most business was done; price tends to stay inside it and gravitate back to it.
  • High-volume nodes — prices with heavy volume act as support/resistance (lots of agreement).
  • Low-volume nodes — thin areas price tends to move through quickly (little agreement to slow it).
← POC (most volume)volume traded at each price level
Volume at each price level; the longest bar is the Point of Control.

How to use it

Volume profile gives you levels grounded in where real trading happened, not just where price wicked. The POC and value-area edges are high-quality support/resistance; low-volume gaps are areas price can travel fast. A common read: when price leaves the value area and accepts the new range (builds volume there), the move is real; when it pokes out and snaps back to the POC, it was a rejection.

Fixed vs. session profiles

You can build a profile over a fixed range (a swing, a consolidation) or per session/day. Fixed-range profiles around a major consolidation are especially useful — they show exactly which prices the market fought over, and those become the levels that matter when price returns. It is the most 'order-flow-like' of the classic volume tools.

Check your understanding

  1. 1. Volume profile shows volume…

  2. 2. The Point of Control is…

  3. 3. The value area is roughly…

  4. 4. Low-volume nodes are areas price tends to…

  5. 5. High-volume nodes act as…

Answer all 5 to check