Volume ProfileVP
A volume profile is a horizontal histogram showing how much volume traded at each price over a period, highlighting levels where most activity happened.
Volume profile turns volume sideways: a horizontal histogram shows how much traded at each price. Heavy rows often act as support or resistance, thin rows as fast-move zones.
- Category
- Indicators and Tools
- Reading time
- 3 min
- Also called
- Volume-by-Price, Volume at price
- Updated
Volume profile in plain words
Volume profile shows how much traded at each price level over a chosen period.1
A simpler version, Volume-by-Price, shows volume for price ranges using closing prices.2
The busiest price is the point of control, and the band holding most volume is the value area.
How a volume profile is built and read
Choose the range
Select a session, a fixed range or the visible chart.
Collect lower-timeframe data
For one day's profile, the tool pulls in every 1-minute bar from that session.1
Bucket by price
Sort volume into price rows; Volume-by-Price defaults to 12 rows, and you can change that.2
Find the POC
Find the point of control (POC): the price with the most volume in the period.1
Mark the value area
Mark the value area: the price range holding a set share of the period's volume.1
Use the levels
High-volume price ranges mark support or resistance levels.2
Worked examples
Example 1 — POC as support
Support heldA hypothetical stock’s POC is 72 with value area 70–75; price pulls back from 78 to 72.
| POC | 72 |
| Bounce | 72 → 76 |
High-volume price ranges mark support or resistance levels, and 72 held.2
Example 2 — Thin zone
Fast moveBetween hypothetical prices 80 and 84 the profile shows very little volume.
| Volume 80–84 | Low |
With little past trading at those prices, price often moves quickly through them.
Example 3 — Value area setting
Narrower VAA hypothetical trader changes the value area from 70% to 60%.
| VA 70% | 70–75 |
| VA 60% | 71–74 |
The value-area share is usually 70% but is the trader's choice, so the levels shift with the setting.1
Volume profile vs regular volume
| Aspect | Volume profile | Volume bars |
|---|---|---|
| Axis | Price (horizontal) | Time (vertical) |
| Shows | Where volume traded | When volume traded |
| Key levels | POC, VAH, VAL | Spikes |
| Best for | Support and resistance | Activity and confirmation |
Where volume profile is used
Levels
Mark Support and Resistance at the POC and value edges.
Breakouts
Judge Breakout room through thin zones.
Intraday
Combine with Volume-Weighted Average Price and Order Flow.
Liquidity
See where Liquidity concentrated.
Advantages and disadvantages
Advantages
- Shows where real activity occurred.
- Objective POC and value area.
- Works on many timeframes.
- Highlights thin zones.
Disadvantages
- Settings change results.
- Forex and CFD data may be tick volume.
- Past volume may not repeat.
- Needs good intraday data.
Going deeper
Read as far as you need. Each level builds on the one before it.
Volume types
Beginner
Profiles use real trade volume for stocks but tick volume for index, forex and crypto CFDs, so they're only as good as the data behind them.1
Value area convention
Intermediate
The value area usually covers 70% of volume, though traders can pick another share.1
Closing-price version
Advanced
StockCharts’ Volume-by-Price is based on closing prices, so it is coarser than an intraday profile built from 1-minute bars.2
Common mistakes
Treating the POC as a wall
It is a zone.
Mixing range choices
Compare like with like.
Ignoring data type
Check trade vs tick volume.
Using too few rows
Detail gets lost.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- Volume profile shows volume by price.
- The POC is the highest-volume price.
- The value area usually holds 70% of volume.
- Heavy rows act as support or resistance.
- Data and settings matter.
Frequently asked questions
Is volume profile the same as Market Profile?
What is a typical value area?
Does it work in forex?
Further learning
- Volume-Weighted Average Price
A time-and-volume average.
- Order Flow
Who traded at those prices.
- Liquidity
Why heavy rows matter.
- Volume
The raw input.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- TradingView. Volume profile indicators: basic concepts (opens in a new tab) Checked .
- StockCharts ChartSchool. Volume-by-Price (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.