Volume Profile
POC · VAH · VAL explained
The Volume Profile reorganises volume information in a radically different way from classic indicators: instead of showing volume per period (candle), it shows volume per price level. This representation reveals where the market spent the most time and traded the most volume — crucial information for identifying supports, resistances, and equilibrium zones.
Volume Profile in 30 seconds
Imagine superimposing a horizontal histogram on your chart. Each bar represents the total volume traded at a given price level over a selected period. The longer the bar, the more volume was traded at that price. This visualisation instantly reveals acceptance levels (where the market spends time) and rejection zones (where it passes through quickly).
The Volume Profile has been used by institutional traders, market makers, and algorithmic traders for decades. Its adoption in retail crypto trading exploded with the availability of real-time aggTrade data.
Point of Control (POC)
The Point of Control is the price level where total volume is highest over the analysed period. It's the price at which the market traded the most — the equilibrium point between buyers and sellers for that period.
The POC has remarkable properties:
- Price magnet — The market tends to return to the POC after price extensions, like a gravitational equilibrium point.
- Strong support/resistance — On a return to the POC, there is often a significant reaction because many players have open positions at this level.
- Fair value zone — The POC represents the "fair price" perceived by the market for the given period.
A price that moves significantly away from the POC is often in "price discovery" — seeking a new equilibrium point. These phases can be violent and rapid in crypto markets.
Value Area: VAH & VAL
The Value Area (VA) is the price zone containing 70% of total volume traded over the period. This proportion (70%) is not arbitrary — it corresponds to one standard deviation around the mean in a normal distribution, and the market tends to return to this zone the majority of the time.
The 80% Rule (Value Area Rule)
An empirical rule used by futures traders: if price opens outside the Value Area and returns inside, there's approximately 80% probability it will reach the other end of the VA. For example, if price opens below the VAL and rallies back into the VA, there's an 80% chance it will reach the VAH. This rule is particularly effective on sessions after an opening gap.
Low volume zones (LVN)
Low Volume Nodes (LVN) are zones where very little volume was traded — the very short bars of the Volume Profile. These zones have particular significance:
- Quick traversal — Price crosses LVNs rapidly because there is little interest at these levels. Low resistance at these prices.
- Fragile support/resistance — An LVN does not constitute a solid level. If price breaks through it, it will often continue until the next HVN (High Volume Node).
- "Empty space" zones — On a chart, these are the empty spaces between two volume blocks. Price crosses them like a marble on an inclined plane.
The classic strategy: identify LVNs and adjacent HVNs (high-volume zones). When price breaks through an HVN and enters an LVN, it tends to accelerate to the next HVN.
Reading a Volume Profile
A "healthy" Volume Profile in an uptrend shows volume concentrated in the upper part of the range, with the POC in the upper half. A "D"-shaped profile (centred normal distribution) indicates a balanced consolidation phase. A "P"-shaped profile (volume at bottom) suggests potential accumulation. A "b"-shaped profile (volume at top) suggests potential distribution.
| Profile shape | Volume concentrated | Interpretation |
|---|---|---|
| D shape | Range centre | Balanced consolidation |
| P shape | Upper part | Accumulation / Uptrend |
| b shape | Lower part | Distribution / Downtrend |
| Bimodal profile | Two distinct zones | Contention zone — potential volatility |
Practical strategies
Strategy 1 — POC bounce
Identify the POC of a previous session or consolidation phase. In an uptrend, returns to the POC are buying opportunities. Enter on the bounce off the POC with a stop below the VAL. Target: the VAH or previous high.
Strategy 2 — HVN breakout with LVN
When price exits an HVN zone and enters an LVN, there is little resistance to stop it. Enter in the breakout direction with a tight stop below the broken HVN level. The target is the next HVN in the direction of the move. These moves can be fast and extended in crypto.
Strategy 3 — Volume Profile + Footprint
Combine the Volume Profile to identify key levels with the Footprint Chart to validate directional pressure. A return to the POC accompanied by absorption (strong Bid volume without price decline) is a high-quality buying signal.
Volume Profile types
There are several ways to calculate a Volume Profile, depending on the period analysed:
- Session Volume Profile — Calculated over a trading session (day). Useful for identifying important intraday levels.
- Visible Range Volume Profile (VRVP) — Calculated from all visible candles on screen. Recalculates in real time based on zoom. This is what CrypView offers.
- Fixed Range Volume Profile — Calculated over a manually selected candle range. Useful for analysing specific phases.
- Composite Volume Profile — Cumulative across multiple sessions or weeks. Provides a macro view of interest levels.
Volume Profile on CrypView
CrypView offers real-time Volume Profile (Visible Range Volume Profile), dynamically calculated from the visible candlesticks. It displays as horizontal bars on the right side of the chart, with POC, VAH, and VAL clearly indicated.
- Right-click → Indicators → Volume Profile
- The profile displays immediately and updates with each new candle
- Zoom or scroll to recalculate over a different range
- Combine with the Footprint (
Shift+F) for confluence
The POC, VAH, and VAL levels are also documented in the CrypView Wiki.