Volume Profile

What is Volume Profile?

Volume Profile displays how much volume traded at each price level over a chosen range or session. It highlights areas of acceptance (high volume) and rejection (low volume), aiding identification of key support/resistance levels.

How Volume Profile Works

  • Aggregates traded volume by price instead of time.
  • Marks key references:
    • POC (Point of Control): Price with maximum volume
    • Value Area (VAH/VAL): Range covering a set percentage (e.g., 70%) of total volume
    • HVN/LVN: High-/Low-Volume Nodes indicating acceptance/rejection

Interpretation:

  • Price tends to rotate around HVNs; LVNs can act as barriers during traversals.
  • Shifts in POC/value area can signal evolving market bias.

Available Settings in FutPrint

  • Range: Session, visible range, or custom selection
  • Value Area %: Default 70%
  • Resolution: Price step aggregation (tick/points)
  • Style: Histogram colors, VA shading, POC line style

Practical Usage and Best Practices

  • Use LVNs/POC as tactical levels for entries, targets, and stops.
  • Combine with delta/orderflow to confirm acceptance/rejection.
  • Adapt the range (intraday vs composite) to your timeframe.

Limitations:

  • Illiquid markets may produce sparse or noisy profiles.

Using Volume Profile in the Platform

  1. Add Volume Profile from Volume indicators.
  2. Choose the range and value area percentage.
  3. Tune resolution and styling for clarity.

See Also