#Education ✍️
📊 Fixed Range Volume Profile:
A Must-Have Tool for Analyzing Large Price Ranges
The Fixed Range Volume Profile is one of the most convenient tools for identifying key levels within large price ranges. Here's why it's so effective:
Key Metrics:
1️⃣ VAL (Value Area Low) — the lower boundary of the value area.
This is the lowest price within which 70-75% of the trading volume occurs. It often acts as a support level.
2️⃣ VAH (Value Area High) — the upper boundary of the value area.
This is the highest price within which 70-75% of the trading volume occurs. It often serves as a resistance level.
3️⃣ POC (Point of Control) — the price level with the highest trading volume within the selected range.
This is where the price stayed the longest and where market participants showed the most interest.
4️⃣ LVA (Low Volume Area) — areas with low trading volume.
These often indicate potential price gaps or zones that the market largely ignored.
5️⃣ HVA (High Volume Area) — areas with high trading volume.
These represent zones where the price spent more time, creating key levels for analysis.
💡 Why Use It for Large Price Ranges?
It simplifies market structure analysis over time, making finding optimal entry and exit points easier.
🛠 Pro Tip: Combine it with other tools, like VWAP or liquidation heatmaps, to enhance your strategy and confidence in decision-making.
📊 Fixed Range Volume Profile:
A Must-Have Tool for Analyzing Large Price Ranges
The Fixed Range Volume Profile is one of the most convenient tools for identifying key levels within large price ranges. Here's why it's so effective:
Key Metrics:
1️⃣ VAL (Value Area Low) — the lower boundary of the value area.
This is the lowest price within which 70-75% of the trading volume occurs. It often acts as a support level.
2️⃣ VAH (Value Area High) — the upper boundary of the value area.
This is the highest price within which 70-75% of the trading volume occurs. It often serves as a resistance level.
3️⃣ POC (Point of Control) — the price level with the highest trading volume within the selected range.
This is where the price stayed the longest and where market participants showed the most interest.
4️⃣ LVA (Low Volume Area) — areas with low trading volume.
These often indicate potential price gaps or zones that the market largely ignored.
5️⃣ HVA (High Volume Area) — areas with high trading volume.
These represent zones where the price spent more time, creating key levels for analysis.
💡 Why Use It for Large Price Ranges?
It simplifies market structure analysis over time, making finding optimal entry and exit points easier.
🛠 Pro Tip: Combine it with other tools, like VWAP or liquidation heatmaps, to enhance your strategy and confidence in decision-making.