What is Volume Profile?

Volume Profile is a technical analysis tool that displays trading volume at different price levels over a specified time period. It helps traders identify significant price levels where the most trading activity has occurred, revealing important support and resistance zones.

Key Components

Visual Elements

• Volume bars by price level
• Point of Control (POC)
• Value Area
• Volume nodes
• Profile shape

Market Structure

• High volume nodes
• Low volume nodes
• Value area high/low
• Distribution patterns
• Price acceptance zones

Trading Applications

Analysis Methods

• Market structure analysis
• Support/resistance levels
• Entry/exit points
• Stop loss placement
• Target identification

Volume Interpretation

• Liquidity clusters
• Price rejection levels
• Breakout potential
• Trend strength
• Market balance areas

Related Terms

• Market Profile
• Volume Analysis
• Price Action
• Market Structure