GlossaryAdvanced
Volume Profile
A chart overlay showing how much volume traded at each price level over a period, typically displayed as a horizontal histogram.
Volume Profile shows how much trading volume occurred at each price level over a chosen period, typically displayed as a horizontal histogram alongside the price chart — a structurally different view from most indicators, which show volume over time rather than volume by price level.
The price level with the most volume is commonly called the "point of control," and the broader zone containing most of the period's volume is commonly called the "value area" — both are commonly watched as potential areas of future support or resistance. See Kaavon's dedicated Volume Profile article for the full construction.
Examples
- A Volume Profile's "point of control" is the single price level where the most trading volume occurred during the period shown.
- Unlike most volume indicators, which plot volume over time, Volume Profile plots volume by price level, giving a structurally different view of the same underlying data.