WickCheck / Trading school / Volume profile
Volume profileIntermediate
A sideways histogram showing how much traded at each price.
What it means
Thick areas (high volume nodes) are prices the market accepted; thin areas (low volume nodes) were passed through quickly and often get revisited. In forex there is no central volume, so profiles use broker volume or time spent at each price.
How to spot it
- Look for the point of control and the value area.
Common mistakes
- Treating forex volume as exact exchange volume.
Related terms
Point of controlThe price with the most volume (or time) in a volume profile.…Value areaThe price range holding about 70% of a session's volume, with a high (VAH) and l…VWAPThe average price of the session weighted by volume, reset each day.…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.