What Is Volume Profile (VP)?
Volume Profile displays how much volume traded at each price level, revealing where the market found fair value.
Quick Answer
Volume Profile displays how much volume traded at each price level, revealing where the market found fair value.
What Does VP Measure?
Volume Profile is a horizontal histogram showing the distribution of traded volume across price levels over a selected range. Key levels include the Point of Control (POC) — the price with the most volume — and the Value Area (typically 70% of total volume) bounded by Value Area High (VAH) and Value Area Low (VAL). These levels often act as support and resistance because they represent prices where the most business was conducted. Unlike time-based indicators, Volume Profile is built from actual transaction data at each price. VaultCharts includes Volume Profile Plus as a free built-in indicator on desktop charts, with visible-range and fixed-range modes.
Volume at each price level = sum of volume for all bars where price traded at that level; POC = price level with highest volumeHow to Read VP
- 1POC represents the price with greatest accepted value (fair value)
- 2VAH and VAL bound the range where most volume traded
- 3Low-volume nodes (LVN) often act as price acceleration zones
- 4High-volume nodes (HVN) often act as support or resistance
How to Use VP in Trading
VP Settings
| Setting | Default | Description |
|---|---|---|
| Value Area Percent | 70 | Percentage of total volume defining the value area |
| Number of Rows | 300 | Price levels in the histogram |
Common Mistakes to Avoid
Use VP in VaultCharts
VaultCharts includes Volume Profile with customizable settings. Combine it with our automated pattern detection and trade signals for better analysis.