I've noticed that many traders still don't use one of the most powerful tools for market analysis. I'm talking about Volume Profile Visible Range — an indicator that shows where the main trading volumes occurred at each price level.



Regular volume histograms show how much trading happened at each specific moment in time. But VPVR works differently — it distributes the entire volume across price levels. See on the chart? Here, the price lingered for a long time, here a lot of orders accumulated, and here the price moved quickly. This is the key to understanding market structure.

The structure of the indicator consists of several important elements. First, there are volume histograms — vertical bars indicating volume at each level. The longer the bar, the more trading occurred at that level. Second, Point of Control — the level with the highest volume during the period. Usually, the price bounces well from it. Third, High Volume Nodes — zones where the price spent time and encountered a lot of orders. And finally, Low Volume Nodes — areas with little volume, where the price passes quickly.

How do I use this in practice? When the price approaches a High Volume Node, I look for resistance or support. This works because these levels already had a lot of trading before, and orders often return there. If the price breaks through the Point of Control, it’s often a signal of a serious move. And Low Volume Nodes are zones for quick breakouts, where you can catch impulses.

Practically, VPVR helps me find entry and exit levels. I see the price consolidating in a high-volume zone — I wait for a pullback to that level and open a position. When the price reaches the Point of Control — I take profit, because there’s a high chance of reversal or slowdown. On pullbacks, I look for High Volume Nodes — where the price often finds support.

One important thing — don’t rely solely on VPVR. It’s a powerful tool, but it’s better to combine it with other indicators and patterns. I look at the trend, levels, and volumes simultaneously. That way, signals become much more reliable. The indicator shows market structure, but I make the decision myself, considering the full picture.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin