What Volume Profile Is (and Isn’t)
Volume profile is a horizontal histogram showing how much volume traded at each price level over a chosen time window. It is not a momentum indicator. It is a map of where participants have already committed capital — and therefore where they are likely to defend, accumulate, or reject.
The Three Things You Read
Point of Control (POC)
The single price with the highest traded volume in your window. POCs act as magnets — price tends to revisit them, and they often serve as strong S/R.
Value Area (VA)
The price range that captured 70% of volume. Value Area High (VAH) and Value Area Low (VAL) are reliable intraday levels.
Low Volume Nodes (LVN)
Price ranges with thin volume. These act as "vacuum zones" — when price enters them, it tends to traverse them quickly to reach the next high-volume node.
The Three Setups That Work
- POC retest. Price moves away from POC, then returns. Trade the bounce in the direction of the prior move.
- VAH/VAL break and retest. Break of value area, retest from the outside, continuation entry.
- LVN traversal. Price enters a thin node — fade it back to the high-volume zone, or play the breakout to the next node.
What AI Adds
Venasri builds volume profile across all timeframes automatically and overlays POC, VAH, VAL, and LVNs on your chart. The confluence engine uses these as inputs to the overall trade score. Try it free.