Volume profile: POC, VAH and VAL
Shows how much traded at each price. The busiest price is a magnet; value area edges act as levels.
What it is
A volume profile plots volume horizontally against price. The point of control (POC) is the price with the most volume, the value area contains about 70% of the volume, with edges called VAH and VAL. Prices inside the value area are “accepted”; prices outside are “rejected” or “in discovery”.
Price tends to rotate between VAL and VAH, gravitate to the POC, and accelerate through low-volume areas.
How to use it
- Load the previous session’s profile and mark POC/VAH/VAL.
- Expect rotation inside the value area; fade the edges with confirmation.
- A close and hold outside the area suggests a trend day: trade the break.
- Use low-volume nodes as likely fast-move zones.
Common mistakes
- Using a profile from a thinly traded period.
- Ignoring that levels change daily.
- Treating the POC as exact.
Practise it in TradeDesk X
TradeDesk X draws a volume profile with POC, VAH and VAL, plus fixed profiles for sessions or the full day. The Micro chart overlays a mini profile with the POC.
Related lessons
VWAP (volume-weighted average price)
The average price paid today. Institutions benchmark to it; price tends to return to it.
📈Support and resistance
Prices react at the same zones repeatedly. A broken level often flips its role.