LessonsIndicator atlasPrice and value
Volume profile: POC, VAH, VAL
How much traded at each price: a map of the prices the market considered fair and the ones it flew through.
How we compute it
We spread each candle's volume across its range (candles fully recorded from the tape: exactly at trade prices). The POC is the row with the most volume; the value area (VAH–VAL) is the 70% of volume around the POC.
How to read it
- Price inside the value area: the market accepts these prices. Outside it: either a quick return (rejection) or new value being built (acceptance).
- A thick, symmetric profile means balance; an elongated, thin one means a trend.
- An edge broken in one direction often works from the other side (VAL as resistance from below).
Traps
- The profile depends on the range: the visible range, the session and the day give different POCs.
- The POC is not a guaranteed magnet: price returns to it often because it usually sits close to the current price.
Combine with
- With VWAP and the day's levels: several levels lining up make a stronger map.
- With flow at the edge: does aggressive buying at VAH get through or get absorbed?
In Charts
Indicators → Volume profile, Session profiles and naked POCs, Developing POC and value area
The figure from a real market slice, the exercises and the Charts workstation button are in the Lessons tab.