# Volume Profile

### Overview

Volume Profile is a type of advanced charting study that displays trading activity for a specified time period at specified price levels. The study (accounting for user-defined parameters such as time period and price range) plots a histogram on the chart meant to reveal dominant and/or significant price levels based on volume.

### Interpretation

Volume Profile is interpreted as follows:

* High Volume Nodes (HVN): A peak in the Volume Profile. This represents a price level with a high number of executed trades that is seen as a potential level of support/resistance.
* Low Volume Nodes (LVN): A trough in the Volume Profile. This represents a price level with a low number of executed trades that is seen as a potential breakout level.

## Indicator Triggers: 

### In Band: Price is in/out a specific area

<figure><img src="https://793384675-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FsQezxfp9oB9jrccv5OA4%2Fuploads%2FJEpjUgP4M6cEUOu2wmKu%2Fimage.png?alt=media&#x26;token=d93243e7-9811-4b11-9c94-a0765a5c408b" alt="" width="563"><figcaption><p><strong>A long signal is triggered if price enter in the Value Area.</strong></p></figcaption></figure>

<figure><img src="https://793384675-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FsQezxfp9oB9jrccv5OA4%2Fuploads%2Fvk5q5z6XBOCiXQDYLG2s%2Fimage.png?alt=media&#x26;token=6e7c0404-2a8e-42d1-963a-0b5901f0b140" alt=""><figcaption><p><strong>A long signal is triggered as price enter in Value Area (low).</strong></p></figcaption></figure>

### Price cross up/down

We only consider body closes for this trigger. If the price cross up/down the band (wick), but the candle body close is in the bands then no signal is triggered.

<figure><img src="https://793384675-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FsQezxfp9oB9jrccv5OA4%2Fuploads%2FFTjZNGBA5tlRKpVHi2OS%2Fimage.png?alt=media&#x26;token=18d4660a-6862-47a4-8c02-abfff41e7c2c" alt=""><figcaption><p><strong>A long signal is triggered if price cross up the Point of Control (POC).</strong></p></figcaption></figure>

<figure><img src="https://793384675-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FsQezxfp9oB9jrccv5OA4%2Fuploads%2FHXz1yGFBd77sz1Z2CH4a%2Fimage.png?alt=media&#x26;token=6b32ad4d-eae2-486e-9d1d-0252c94d412f" alt=""><figcaption><p><strong>A long signal is triggered as price cross up the Point of Control (POC).</strong></p></figcaption></figure>

### Price touch up/down&#x20;

This trigger is almost like the same as described above, but it is not necessary to wait for a body close. As soon as the price touch/wick the POC (or any other), a signal is triggered.

<figure><img src="https://793384675-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FsQezxfp9oB9jrccv5OA4%2Fuploads%2FV1cs6RiOy92HxeFAosb3%2Fimage.png?alt=media&#x26;token=20acfb3a-9470-4baa-be86-f44dbccc61ac" alt=""><figcaption><p><strong>A short signal is triggered if price touch up the Point of Control (POC).</strong></p></figcaption></figure>

<figure><img src="https://793384675-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FsQezxfp9oB9jrccv5OA4%2Fuploads%2FDGgikRPkRgmfhSn0ggFK%2Fimage.png?alt=media&#x26;token=4611df6f-0549-4fdc-9c9a-19eded99bba7" alt=""><figcaption><p><strong>A short signal is triggered as price touch up the Point of Control (POC).</strong></p></figcaption></figure>

### Line distance in % or ATR

You can trade a specific distance of the price against many other.

<figure><img src="https://793384675-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FsQezxfp9oB9jrccv5OA4%2Fuploads%2FVrqskpTgtxmZaUPzKUAA%2Fimage.png?alt=media&#x26;token=43d48594-d609-494d-aae1-538031d1ac1f" alt=""><figcaption><p><strong>A long signal is triggered if the POC is under the price at a distance between 0 and 1% or 0 and 1 ATR.</strong></p></figcaption></figure>

<figure><img src="https://793384675-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FsQezxfp9oB9jrccv5OA4%2Fuploads%2F31kU1eNxuHq0Ji7fmDyI%2Fimage.png?alt=media&#x26;token=9471d1aa-eed8-42c6-87c1-1413ce0685c6" alt="" width="229"><figcaption><p><strong>You can choose many other options as a trigger.</strong></p></figcaption></figure>

<figure><img src="https://793384675-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FsQezxfp9oB9jrccv5OA4%2Fuploads%2FHNzGYVT7xG1m9GzpyCv5%2Fpoc.PNG?alt=media&#x26;token=bb27d2bc-6c90-4d41-9db2-a73f0fb23abe" alt=""><figcaption><p><strong>A long signal is triggered in the green rectangle area as Point of Control (POC) sustain under price between 0.2 and 1% / 0 and 1 ATR.</strong> </p></figcaption></figure>

## Notes :&#x20;

* Tip from the famous volume trader Dalton, from his systematic strategy; If the market opens above or below the previous day Value Area and then accepts back inside the value of two 30-minute candles (2 TPO's), there is an 80% chance to rotate to the other side of the Value Area.
* **Point of Control (POC)** is the price level in which maximum time was spent or maximum trading volume happened on any day.
* Once the market accept to establish a range with an unfair high/low, it negotiates within the range to establish a so called **Value Area (VA)**.