Intraday Volume Profile, High and Low Volume Nodes, and VWAP

Summary

This document explains volume profile as a view of trading activity distributed across price levels. High volume nodes (HVNs) are described as acceptance areas where price spends more time and trading volume is concentrated. Low volume nodes (LVNs) are treated as rejection areas that may act as support or resistance. The accompanying indicator code divides a recent price range into ten bands and estimates profile width from volume observed in a rolling set of bars. It also calculates intraday VWAP measures and presents them as potential reference levels.

The settings include a profile count, an auction-volume filter, and switches for profile and VWAP display; the text recommends eight profiles. These are indicator concepts, not a complete trading strategy. The document supplies no chart results, testing, or evidence that the proposed support and resistance levels predict future moves. Its code and definitions should be checked against the target platform, especially because the volume calculation and labels do not establish how reliably the displayed nodes represent acceptance or rejection.

Key ideas

• A volume profile maps traded volume across price levels.
• High volume nodes are described as acceptance zones, while low volume nodes are described as rejection zones.
• The indicator divides a recent price range into ten bands and estimates relative profile widths from recent bars.
• Intraday VWAP lines are included as possible support and resistance references.
• The document gives implementation details but no performance evidence or validated trading rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.