Volume Profile Value-Area Fades and HVN Breakouts

Summary

This strategy builds volume profiles from recent sessions, distributing each bar’s volume across price rows. It estimates a point of control (POC) and value area by expanding outward from the highest-volume row, and identifies high-volume node (HVN) zones from local peaks and their prominence. It also tracks untouched POCs from prior sessions as potential price targets.

The fade setup enters when price moves beyond the value area and closes back within it, aiming toward the POC. The breakout setup requires a close outside the value area with above-average volume and targets a nearby HVN or untouched POC, with a fixed risk multiple as fallback. RSI filters fades; ATR and swing pivots inform stops. The script is an educational template with configurable profiles and risk rules, not evidence of profitability: it supplies no performance results, and its author cautions that settings are illustrative and should be tested across periods before live use.

Key ideas

• The script approximates volume at price by spreading each bar’s volume across the profile rows touched by its range.
• The POC is the row with the most volume, and the value area expands from it until the selected volume share is included.
• Fades require rejection back inside the value area, while breakouts require an outside close and elevated volume.
• Breakout targets can use nearby HVN zones or untouched POCs, while fade targets point toward the POC.
• Stops use ATR distances and swing pivots, but the document provides no backtest results.

Tags

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