Definition
Volume Profile displays volume as a horizontal histogram at each price level rather than time-based. High volume nodes (HVN) show prices where significant trading occurred, acting as support/resistance. Low volume nodes (LVN) are areas price tends to move through quickly.
Example
If Volume Profile shows 40% of trading occurred between $48-$52, this zone is a high volume node that may act as support. Price tends to gravitate toward and find balance at HVNs.
FAQ
What is Volume Profile?
A chart study showing volume distribution across different price levels.
Why is Volume Profile important?
Volume Profile helps investors evaluate technical analysis and make more informed decisions.