Volume Profile
Identify high-volume nodes and the Point of Control (POC) for institutional-level S/R analysis.
Key Concepts
POC
Point of Control
Highest volume level
VAH
Value Area High
Upper 70% range
VAL
Value Area Low
Lower 70% range
- POC: Strong magnet - price often returns here
- Value Area: 70% of trading occurred here - fair value zone
- High Volume Nodes: Congestion areas, act as S/R
- Low Volume Nodes: Price moves quickly through these
Trading Strategy
- Look for price to bounce off POC or Value Area edges
- Low volume nodes = fast price moves, potential targets
- Trade rejection at VAH/VAL for mean reversion