What is Volume Profile?
Volume Profile reorganizes volume by price. Instead of showing a volume bar for each candle, it shows where trading activity was concentrated across the selected price range.
What does it measure?
Traded volume at each price or price interval within the selected session or lookback.
How is it calculated?
Platforms aggregate executed volume into price bins. Exact results can differ because of data feed, tick aggregation and profile settings.
Common interpretation.
- High-volume areas show where significant trading activity occurred.
- Low-volume areas show prices where relatively little volume was recorded.
- POC identifies the most heavily traded price area in the selected profile.
- Value Area describes the region containing a chosen share of total profile volume.
How traders use it for market context.
- Centralized futures markets provide exchange-traded volume, making Volume Profile especially relevant for futures analysis.
- Session profiles are commonly used to compare current trading with prior high-volume and low-volume areas.