I want to tell you today about an indicator that has personally helped me a lot in trading – the VPVR, or Volume Profile Visible Range. It’s actually a pretty brilliant tool if you want to understand where the major volumes are truly concentrated in the market.

The difference from normal volume histograms is crucial: VPVR doesn’t show you volume over time, but over price levels. That means, at a glance, you can see at which prices most transactions have taken place. This is exactly valuable for identifying support and resistance levels.

How does it work specifically? The VPVR has several components that work together. First, there is the POC – the Point of Control. That’s simply the price level with the highest trading volume. When you see the POC, you immediately have a critical level in view. Then there are the HVNs, the High Volume Nodes – areas where a lot of activity has occurred. These zones often act as natural resistance or support because the price has spent a lot of time there and encountered many orders. The opposite are the LVNs, Low Volume Nodes – sparsely populated price levels where the price can move through quickly.

In practice, I use the VPVR like this: When I analyze a chart, I look at where the price currently is in relation to the HVNs and the POC. If the price approaches an HVN, I expect resistance to appear there. This is great for entry planning. I look for levels where pullbacks are likely – exactly where the HVNs are perfect. When it comes to exiting, VPVR also helps me: if the price reaches the POC or an HVN, that’s often a moment to take profits.

A practical example: Let’s say the price is currently in a consolidation zone. With VPVR, I immediately recognize whether this zone has high or low volume. High volume indicates consolidation, low volume points to quick movements. If the price then breaks out through an LVN, that can be the start of a new trend.

Important to understand: VPVR works best when combined with other technical tools. It’s not a cure-all, but it gives you a real advantage in market structure analysis. With VPVR, you simply understand better where the market is truly breathing and where the air is thin. Try it out and see for yourself how it sharpens your analysis.