Recently, while reviewing my trades, I recalled the VPVR indicator, and I realized many people still only have a superficial understanding of it. Actually, when used properly, this volume visible range indicator can help you avoid many pitfalls.

Speaking of the VPVR indicator, its most amazing feature is that it doesn't display volume bars along the time axis like ordinary volume charts, but rather presents trading volume along price levels. This way, you can clearly see which price levels had the most active trading during a certain period and which areas are less traded.

In practical trading, I mainly rely on three core concepts. First is the Point of Control (POC), which is the price level with the highest traded volume during this period. This level often becomes a strong support or resistance. I often see prices repeatedly testing around the POC, then either bouncing off or breaking through it, rarely ignoring it. Second are High Volume Nodes (HVN), which indicate areas where the price has stayed longer and trading was active, often forming key support or resistance levels. Lastly are Low Volume Nodes (LVN), which are weak areas that can be good breakout points because there are fewer orders blocking the price, making it easier for the price to pass through quickly.

In actual trading, I use the VPVR indicator mainly with a few ideas. When identifying support and resistance, I look at the positions of HVN and POC. If the price approaches these high-volume areas, I expect potential resistance. For retracement trades, I look for HVN levels, because historically, areas with dense trading often serve as good entry points. Also, when the price approaches POC or important HVNs, I consider reducing or closing positions, as these are often signals of profit-taking.

I also discovered a pattern: LVN areas often mark the beginning of a new trend. When the price breaks through these low-volume zones, it can form a rapid impulsive move, which is very helpful for short-term trading. However, it’s important to remember that the VPVR indicator is best used in conjunction with other technical tools; relying on it alone for decision-making carries risks. Think of it as an X-ray of market structure, helping you see more clearly where support exists and where breakouts are likely, making your trading more confident.