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Volume Profile displays the distribution of traded volume at each price level over a configurable session period. Unlike traditional volume bars that show volume over time, Volume Profile shows volume over price — revealing where the market considers value to be. It is one of the most important tools for understanding market auction theory and identifying high-probability support and resistance levels.

Key Concepts

Point of Control (POC)

The POC is the price level with the highest traded volume within the profile period. It represents the “fairest” price where the most agreement between buyers and sellers occurred. Price tends to gravitate toward the POC, making it a powerful magnet and reference level.

Value Area (VA)

The Value Area encompasses the price range where a specified percentage (default 70%) of the total volume was traded. The boundaries are:
  • VAH (Value Area High): Upper boundary of the value area.
  • VAL (Value Area Low): Lower boundary of the value area.
Price trading within the value area is in “balance.” A breakout above VAH or below VAL suggests a directional move.

Naked POC

A Naked POC is the POC from a previous session that price has not yet revisited. Naked POCs act as strong magnets — price often travels to fill them days or even weeks later.
Naked POCs from previous sessions are among the most reliable support/resistance levels available. Enable extendNakedPOC to automatically project unvisited POCs forward until price fills them.

Period Settings

These parameters define what time range each profile covers.

Period Type Guide

The sessionStartUtcHour parameter lets you align daily profiles with your preferred session boundary. For crypto markets (24/7), the default of 0 (midnight UTC) works well. For futures, set it to your exchange’s session open time.

Value Area Settings

POC Settings

VAH / VAL Line Settings

Profile Appearance

Color Schemes

Heatmap color schemes make it immediately obvious where the highest volume concentration is. Use heatmapFire for quick visual identification of high-volume nodes.

Pattern Detection

Volume Profile can automatically detect classic profile shapes that carry specific market implications.

Detected Patterns

Volume Filters

Volume filters highlight specific price levels where volume exceeds a threshold. Up to four independent filters can be configured, each with its own threshold and color. Use filters to find exceptionally high-volume levels that stand out from the rest of the profile.

Delta Profile Mode

When enabled, the profile displays two histograms side by side:
  • Bid (sell) volume on the left.
  • Ask (buy) volume on the right.
This reveals whether a high-volume node was driven by aggressive buying or selling — information that a standard volume profile hides.

Practical Usage

Daily Profile Workflow

For intraday trading with D1 profiles:
  1. Before the session opens, review yesterday’s profile: note the POC, VAH, and VAL.
  2. Mark any Naked POCs from previous sessions.
  3. As price opens, determine whether it is inside or outside yesterday’s value area.
  4. Open inside VA: Expect range-bound action. Trade between VAH and VAL.
  5. Open outside VA: Expect directional action. If above VAH, bias is bullish. If below VAL, bias is bearish.

Key Levels Hierarchy

Confluence with Other Indicators

  • Order Blocks: An order block at a Volume Profile POC is a high-confluence zone.
  • FVG: An FVG that overlaps with a low-volume node suggests price will move quickly through this area.
  • TPO Profile: Volume Profile shows where volume occurred; TPO shows where time was spent. Together they provide a complete auction picture.
  • Multiple HVN: Cross-reference Volume Profile HVNs with the Multiple HVN indicator for levels confirmed across multiple bars.

Common Pitfalls

  • Ignoring context: A POC in a trending market behaves differently than in a range. In trends, price often leaves the POC behind.
  • Too many profiles: Displaying 20 profiles simultaneously creates visual clutter. Use 3–5 profiles for context and focus on the current and previous sessions.
  • Static analysis: Profiles are dynamic during the session. A POC can shift as new volume prints. Re-evaluate levels periodically.
Volume Profile shows where volume was traded, not direction. A high-volume node could be accumulation (bullish) or distribution (bearish). Use delta mode or order flow tools to determine directional intent.