Volume Profile Pro [Canvas]

The Topography of Value: An Analysis of the SVP Pro

The Session Volume Profile (SVP) represents the "DNA" of a trading session. While standard volume bars tell you the intensity of a move, the SVP tells you the conviction of the market at specific price levels.

1. The Heartbeat: Point of Control (POC)

The POC is the single price level that facilitated the most trading volume during the session.

The Magnet Effect: Because the POC represents "Fair Value," price often returns to it like a magnet.

The Institutional Anchor: It is the level where the largest players found the most liquidity to fill their orders.

2. The Playground: The Value Area (VA$)

The Value Area highlights the range where 70% of the session's volume took place.

VAH (Value Area High): The upper boundary of "fairness." Above this, the market is considered "expensive" or overextended for that session.

VAL (Value Area Low): The lower boundary. Below this, the market is considered "cheap" or a potential bargain.

The Rule of 80%: Statistically, if price enters the Value Area and stays there for two consecutive 30-minute periods, there is an 80% chance it will traverse the entire Value Area to the other side.

3. High Volume Nodes (HVN) vs. Low Volume Nodes (LVN)

The "bumps" and "hollows" of the histogram tell a story of market acceptance:

HVNs (The Bumps): These are areas of high competition and consolidation. They act as Support and Resistance because they represent prices where traders are comfortable transacting.

LVNs (The Hollows): These are "liquidity gaps" where price moved too fast for many trades to occur. Price tends to "slice" through these zones quickly, as there is little historical interest to slow it down.

4. Visual Sophistication: The Up/Down Split

By splitting the histogram into Up Volume (Buying pressure) and Down Volume (Selling pressure), the indicator provides a "Delta-lite" view.

You can see if a High Volume Node was built primarily by aggressive buyers or defensive sellers.

It allows you to spot Absorption: When a massive block of "Down Volume" fails to push price lower, you are witnessing institutional buyers absorbing all available sell orders.

5. Temporal Precision

Because this script resets with the Daily Session, it clears the noise of yesterday's battles. It forces the trader to focus on the current narrative. The inclusion of Extended Lines (POC/VAH/VAL) into the "empty space" to the right of the chart provides a forward-looking target for your take-profit or stop-loss orders.

Strategic Application

Mean Reversion: Trading from the VAH/VAL back toward the POC.

Trend Following: Looking for price to find support at a previous session's POC (S/R Flip).

Breakout Validation: A breakout is only "real" if it is accompanied by the Value Area migrating higher or lower alongside price.