Volume Profile: Where Did the Market Do Most of Its Trading?

Volume Profile displays traded volume at different price levels over a selected period.

Three important concepts are:

• POC: The price level with the highest traded volume.

• Value Area: The range containing a selected percentage of volume, commonly 70%.

• Low-volume nodes: Areas with relatively little traded volume.

These levels can help identify areas where the market previously spent time or moved through quickly.

However, they aren't guaranteed support or resistance.

I study how price reacts when it revisits these areas rather than assuming the levels will automatically hold.