Structure
Volume Profile
A horizontal histogram showing the volume of trading activity at each price level over a defined period, revealing where the market accepted value and where it rejected price.
How Draconic reads it
Volume profile is built on auction market theory: markets seek the price level where the most trading can occur, and volume concentration shows where that agreement was found. High-Volume Nodes (HVN) are levels where heavy trading occurred — the market accepted value there — and price tends to slow or consolidate when returning to them. Low-Volume Nodes (LVN) are levels the market moved through quickly — price was rejected — and when revisited, price tends to accelerate through them with minimal friction. The Point of Control (POC) is the highest-volume price of the period: the session's center of gravity and the level price gravitates toward during directionless conditions. Volume profile explains why some levels hold slowly and others gap through instantly.
Related terms
Educational only. Not financial advice. Trading involves risk.