Recently, I’ve been studying a quite practical technical indicator and want to share it with everyone. Many traders actually use VPVR, but not many truly understand it.

Simply put, VPVR displays trading volume by price level instead of by timeline. This way, you can instantly see which price ranges have the most concentrated trading volume. Compared to regular volume bars, this indicator helps you identify where the market’s real support and resistance levels are.

The core concept isn’t complicated. VPVR has a few key parts: first are the vertical bars, whose length represents the relative trading volume at that price; then there is the POC (Point of Control), which is the price with the highest trading volume during the entire period, usually marked with a bright line; also, there are HVNs (High Volume Nodes), which often act as support or resistance; lastly, LVNs (Low Volume Nodes), where trading volume is low, and prices tend to pass through quickly.

How does it work in practice? First, VPVR helps you precisely identify key price levels. If the price approaches an HVN, it’s likely to encounter resistance or bounce. I often use the POC as a standard for strong support or resistance—once the POC is broken, it usually signals a big move is coming.

Second, by observing the distribution of HVNs and LVNs, you can understand where the price is consolidating or oscillating, and where it’s moving rapidly. This is especially useful for finding entry and exit points. For example, during a pullback, I like to place orders near HVNs because the bounce probability is high. As for LVNs, they often serve as breakout channels—if the price breaks through an LVN, it could indicate the start of a new trend.

Regarding exits, VPVR is also very practical. When the price approaches the POC or an HVN, it’s a signal to consider taking profits. I’ve seen many traders use this indicator to precisely lock in gains.

Of course, VPVR isn’t万能. The most important thing is to combine it with other technical tools, like trend lines, moving averages, or other indicators. Relying solely on VPVR for decision-making can be risky. But if you integrate it into your trading system, it can definitely enhance your understanding of market structure.

Interested friends can try this indicator on various trading pairs on Gate, and see how it performs under different market conditions.