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  1. Home
  2. /Glossary
  3. /Volume Profile
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trading

Volume Profile

A chart indicator that shows trading activity at different price levels over a specified time period.

Definition

A chart indicator that shows trading activity at different price levels over a specified time period. High-volume nodes act as magnets for price, while low-volume areas get passed through quickly. The Point of Control (POC) is the price with the most traded volume and often acts as support or resistance.

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Related Terms

Trading Volume

The total amount of an asset traded over a period, usually 24 hours.

Support

A price level where buying pressure tends to overcome selling pressure, preventing further decline.

Resistance

A price level where selling pressure tends to overcome buying pressure, causing price to stall or reverse.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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