What is Point of Control (POC)?

The Point of Control is the price level with the highest traded volume over a specified period. It acts as a fair value price and often provides strong support or resistance.

What is the Value Area?

The Value Area is the range of prices where 70% of volume occurred. VAH (Value Area High) and VAL (Value Area Low) mark its boundaries and act as key trading levels.

A naked POC is a Point of Control from a previous session that has not been touched since. These levels often act as magnets for price.

How do I use Volume Profile for entries?

Wait for price to approach key VP levels (POC, VAH, VAL), then look for reversal candlestick patterns or rejection wicks for entry signals.

Volume Profile: POC, VAH & VAL Trading

Key Takeaways

Volume Profile shows traded volume at each price level, revealing fair value zones
POC (Point of Control) is the highest volume price level - a magnet for price
Value Area (70% of volume) defines the accepted trading range
Naked POCs from previous sessions act as price magnets

What is Volume Profile?

Volume Profile is a charting study that displays trading activity over a specified time period at specific price levels. Unlike traditional volume bars (which show volume over time), Volume Profile shows volume at each price level - revealing where the most trading occurred.

Key Volume Profile Levels

Point of Control (POC)

The price level with the highest traded volume. The POC acts as a "fair value" price and often provides strong support/resistance.

Magnet effect: Price tends to return to the POC
Mean reversion: Prices far from POC often revert

Naked POC Trading

A naked POC is a Point of Control from a previous session that hasn't been touched since. These levels often act as strong magnets for price. Track previous session POCs and watch for price to gravitate toward them.

Value Area (VA)

The range of prices where 70% of volume occurred. This represents the "accepted value" zone.

VAH (Value Area High): Upper boundary of the value area
VAL (Value Area Low): Lower boundary of the value area

Volume Profile Signals in EMMA

Above POC

Price is trading above the Point of Control, indicating bullish sentiment. Traders holding above POC have "fair value" supporting their positions.

Below POC

Price below POC suggests bearish control. Watch for rejection at POC as potential resistance.

POC Touch

Price has reached the Point of Control level. This often triggers:

Mean reversion bounces (price reversing at POC)
Breakout continuation if POC fails to hold

VAH Breakout / VAL Breakdown

Breaking out of the value area often leads to trend moves:

VAH Breakout: Bullish - price escaping the value area to the upside
VAL Breakdown: Bearish - price breaking down from value area

Trading Session Tips

Different sessions have different Volume Profile characteristics:

Asian session: Often builds the initial range
London open: Frequently tests and breaks Asian range
US session: Highest volume, often retests London POCs

Key Parameters

Parameter	Default	Description
VP Period	20 days	Time period for Volume Profile calculation
POC Tolerance	0.5%	How close price must be to POC to trigger "touch" signal

Trading Strategies

Value Area Play

If price opens inside the value area, expect range-bound action
Trade bounces between VAH and VAL
Watch for breakouts/breakdowns from the value area

POC Bounce/Rejection

Wait for price to approach POC
Look for reversal candlestick patterns
Enter in the direction of the bounce with stop beyond POC

Tips for Volume Profile Trading

Use appropriate timeframes: Daily VP for swing trades, intraday VP for day trades
Previous day's POC: Yesterday's POC often acts as today's key level
Composite profiles: Longer-term VP shows more significant levels
Naked POCs: Untested POCs from previous sessions are magnets for price

Low Volume Nodes

Be cautious of Low Volume Nodes (LVN) - price levels with minimal trading activity. Price tends to move quickly through these areas, making them difficult to trade. However, they can serve as acceleration zones in trending markets.