Volume profile explained: POC, value area and how to trade it
Most charts show you when trading happened. Volume profile shows you where: which prices the market accepted and traded heavily, and which it rushed through. Those are the levels price keeps coming back to, and the ones it often runs from.
What is volume profile?
Volume profile is a sideways histogram on your chart. Instead of volume per candle, it shows the volume traded at each price over a chosen period. Long bars are prices where a lot of business was done; short bars are prices the market barely touched.
The key levels
| Level | What it is | How traders use it |
|---|---|---|
| POC (point of control) | The single price with the most volume | A magnet: price often returns to it, and reacts around it |
| Value area | The range holding about 70% of the volume | Where the market agreed on “fair” price |
| VAH / VAL | The value area’s high and low | Edges to fade (rejection) or trade through (acceptance) |
| HVN (high volume node) | A thick part of the profile | Price slows and chops here: support, resistance, targets |
| LVN (low volume node) | A thin part of the profile | Price tends to move quickly through; good for stops and breakouts |
Which profile should you use?
- Session profile: one per day or per session. Yesterday’s POC and value area are classic levels for today.
- Fixed range profile: drawn over a range you choose, such as a consolidation or a swing. Great for finding the POC of a specific move.
- Visible range profile: everything on screen. Quick, but it changes as you scroll.
- Composite profile: many days combined, to find the big, longer-term levels.
A word on forex and gold volume
Spot forex and gold CFDs have no central exchange, so MetaTrader shows tick volume: the number of price changes, not contracts traded. Tick volume tends to track real activity reasonably well, and the levels it produces are widely used, but it’s your broker’s data, not the whole market’s. Treat profile levels as zones, not exact prices.
Three ways to trade volume profile
1. Value area rejection
Price pokes outside the value area, fails to hold, and closes back inside. Traders look to trade back towards the POC, with a stop beyond the rejection. It pairs naturally with a liquidity sweep.
2. The POC as a target and a magnet
When price leaves a balanced area, the old POC often acts as a target on the way back. A POC that price hasn’t revisited (a “naked” POC) is a level many traders watch.
3. LVN breakouts
When price breaks out of a value area into a low-volume gap, it often travels quickly to the next high volume node. The LVN is the trigger; the next HVN is the target.
Volume profile, done for you
TTL Volume Profile Pro for MT4 and MT5 draws the POC, value area and nodes automatically, with a hybrid profile built for forex and gold. It’s also in the £19 launch bundle with The Trader’s Ledger and the 49-page course.
See Volume Profile ProFrequently asked questions
What is the point of control in volume profile?
The single price level with the most volume traded over the period of the profile. Price often reacts around it and returns to it.
What percentage is the value area?
By convention about 70% of the volume, centred on the point of control.
Does volume profile work on forex?
It uses tick volume on forex and gold CFDs, which isn’t the whole market’s volume but tends to track activity well enough to find useful levels. Treat the levels as zones.
What is the difference between HVN and LVN?
A high volume node is a price area with heavy trading, where price tends to slow down. A low volume node is a thin area that price tends to move through quickly.
Educational content only, not financial advice. Trading carries a high level of risk and you can lose more than you expect. Examples use illustrative prices.