Volume Profile

Volume Profile is a charting tool that displays the distribution of trading volume across price levels over a specified period — rather than showing volume as a histogram at the bottom of a chart against time. It reveals the prices at which the most trading activity occurred (called the Point of Control or POC), the Value Area (the price range containing approximately 70% of the period's volume), and high and low volume nodes (price levels where trading was concentrated or sparse). Volume Profile helps traders identify strong support and resistance zones based on where the market has done the most business historically. It is widely used in index futures and options analysis — particularly for Nifty and Bank Nifty — to anticipate price reactions at high-volume nodes.