Recently, I've seen many people discussing the VPVR indicator; in fact, this tool is quite helpful for technical analysis.

Simply put, VPVR displays trading volume according to price levels, not by time. This allows you to quickly see which price ranges have particularly concentrated trading volume. When I look at charts, I often use this indicator to identify support and resistance levels, and it works pretty well.

There are a few core concepts. POC (Point of Control) is the price with the highest trading volume, which usually forms a strong support or resistance. HVN (High Volume Node) represents areas with higher trading volume, where prices tend to stay longer. Conversely, LVN (Low Volume Node) are areas with sparse trading volume, where prices typically fluctuate quickly through these zones.

In actual trading, what can VPVR help you do? First, it helps precisely identify key levels. When the price approaches an HVN, it often encounters obvious support or resistance, so you might consider placing orders at these levels. Second, breaking through the POC often indicates a change in market structure, which could lead to larger price movements.

I often use a retracement trading strategy. When the market pulls back, I use VPVR to find previous high-volume areas, then place buy orders at HVN levels, which has a pretty high success rate. Another way is to determine take-profit points; if the price approaches the POC or HVN, it’s usually a good time to realize profits.

But a reminder: although VPVR is useful, don’t rely on it as your only trading basis. It’s best to combine it with other technical analysis tools, like trend lines or moving averages. The market is complex, and relying on a single indicator can easily lead to pitfalls. Have you used VPVR before? Share your experiences!