# 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

A long signal is triggered if price enter in the Value Area.

A long signal is triggered as price enter in Value Area (low).

### 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.

A long signal is triggered if price cross up the Point of Control (POC).

A long signal is triggered as price cross up the Point of Control (POC).

### Price touch up/down 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.

A short signal is triggered if price touch up the Point of Control (POC).

A short signal is triggered as price touch up the Point of Control (POC).

### Line distance in % or ATR You can trade a specific distance of the price against many other.

A long signal is triggered if the POC is under the price at a distance between 0 and 1% or 0 and 1 ATR.

You can choose many other options as a trigger.

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.

## Notes : * 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)**. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.runbot.io/indicators/runbot-indicators/volume-profile.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.