An advanced charting indicator that displays the total volume traded at each price level over a specified time period, plotted as a horizontal histogram alongside the price axis. Volume profile reveals where the most and least trading activity occurred, identifying high-volume nodes (areas of acceptance) and low-volume nodes (areas of rejection). Key reference levels include the Point of Control (POC), Value Area High (VAH), and Value Area Low (VAL).
Example
“The volume profile showed a prominent high-volume node at $3,800, suggesting that this level would act as a magnet for price and a strong support zone during any pullback.”