Session Volume Profile

Technical & Fundamental Reasoning

The video provides a comprehensive tutorial on the Session Volume Profile HD indicator on TradingView, a tool designed to offer traders a granular and dynamic view of trading volume across different market sessions. Unlike the regular Session Volume Profile, the HD version automatically adjusts its resolution and displays detailed volume bars depending on the zoom level and timeframe, providing high-definition insights into volume distribution at various price points throughout the session. This feature enhances the trader’s ability to pinpoint significant volume clusters, identify key support and resistance levels, and understand market activity timing, including during pre-market and post-market sessions.

Technically, the Session Volume Profile HD indicator breaks down volume data into dynamically sized rows or boxes, which adapt based on the trader’s chart zoom and timeframe, eliminating the need for manual adjustment of row size or tick counts. The visualization includes color-coded volume representing buy and sell activity, value areas showing where the majority of volume is concentrated, and the Point of Control (POC), which marks the price level with the highest traded volume during the session. These features make it easier for traders to interpret the power struggle between bulls and bears at critical price levels, assess momentum shifts, and make better-informed trade timing decisions by focusing on where market participants are most active.

Fundamentally, this tool helps traders integrate volume analysis with price action to improve market timing and strategy development. The volume profile data reveals the market’s acceptance or rejection of price levels, offering insight into potential reversals or continuation patterns. Understanding the session-specific volume distribution allows traders to avoid noisy low-volume periods and focus on periods with meaningful participation, reducing risk and improving entry and exit precision. The tool’s automation and adaptability make it suitable for different trading styles and market conditions, aiding beginners and experienced traders in achieving deeper market context and enhancing trade confidence.

Learners can benefit from using the Session Volume Profile HD by gaining precise visibility into volume concentration during key trading sessions, improving their understanding of support and resistance. It enhances timing decisions by illuminating where market activity is strongest and most relevant. The dynamic adjustment feature allows users to efficiently analyse multiple timeframes without manual resets. Traders can identify important price levels for setting stop-loss and target points more accurately. Overall, it deepens volume-based technical analysis and helps develop more effective trading strategies.

The Session Volume Profile HD is an advanced technical analysis tool built upon market auction theory.

• Technical Logic: This indicator overlays a histogram of volume onto the price axis for each trading session. Its defining “HD” feature is a dynamic calculation engine (0:00:49). Unlike standard volume profiles where the user manually sets the number of rows or ticks for data grouping, the HD version automatically adjusts the profile’s granularity (resolution) based on the user’s zoom level and time frame. This ensures a clear, high-definition look at volume distribution, regardless of chart magnification, removing the need for constant manual setting adjustments. Key technical data points generated are the Point of Control (POC), Value Area High (VAH), and Value Area Low (VAL).
  
  
• Fundamental Logic: The Volume Profile fundamentally illustrates the market’s auction process. It is a visual representation of where the market has accepted or rejected price. The most voluminous bar, the Point of Control (POC) (0:08:46), identifies the price level where the maximum volume of transactions occurred, essentially the fair value or most accepted price for that session. The Value Area (VA) (0:09:06) encapsulates the range where the bulk of trading activity took place (e.g., 70% of volume), indicating the core zone of price acceptance. Prices trading outside the VA or POC are often interpreted as potential areas of imbalance or where the market may be searching for new price acceptance.

Useful Notes for Learning Purpose

1. Grasping the Power of Dynamic Granularity: The Session Volume Profile HD is distinct because it prioritizes a dynamically adjusting visual output (0:04:42). A learner must understand that the key benefit is efficiency and clarity across different monitors and zoom levels. In the traditional Session Volume Profile, the number of bars (rows) is fixed by the user, which can obscure detail when zoomed in or clump data too much when zoomed out. The HD tool’s automatic adjustment means a trader can move quickly between time frames and zoom levels without missing the underlying volume details, making it a powerful tool for those who monitor multiple assets or trade intraday.
   
   
2. Using POC Movement for Trend Confirmation: A simple and potent application of this tool is tracking the Point of Control (POC) across consecutive sessions (0:07:32). The POC represents the gravitational center of a session’s trading activity. For a powerful trend confirmation signal, learners should observe whether the POC is trending up or down over several days. A series of higher POCs suggests that the market’s “fair value” is consistently shifting to higher prices, confirming a robust uptrend. Conversely, multiple consecutive lower POCs indicate the consensus of fair value is declining, confirming a downtrend. This provides a volume-based conviction for trend strength.
   
   
3. Interpreting the Value Area for Support and Resistance: The Value Area (VA), bounded by the VAH and VAL, provides crucial context for intraday and session-to-session trading (0:09:13). The VAH and VAL levels act as significant dynamic support and resistance. If a price opens outside the previous day’s Value Area but quickly reverses and enters it, it suggests the market is rejecting the new price and reverting to the old fair value. Conversely, if the price opens outside the VA and stays there, forming a new, distinct profile, it signifies new price acceptance and often leads to a trend extension.

Learner Benefits

1. It simplifies visual analysis by automatically adjusting volume bar granularity for a clear view.
2. It helps quickly identify the session’s Point of Control (POC), the consensus fair value price.
3. Learners can easily spot emerging trends by tracking POC movement across sessions.
4. It defines the Value Area (VA), identifying the core price acceptance zone in the market.
5. It provides dynamic, volume-weighted support resistance levels (VAH/VAL) for trade planning.

Disclaimer from aiTrendview.com

This briefing and the analysis examples provided, based on the TradingView tutorial video, are intended solely for training and learning purposes. The content is purely illustrative of software functionality, technical concepts, and chart analysis methods. This is not any kind or sought of recommendation, financial advice, or professional investment analysis. All viewers and learners must conduct their own independent research and analysis. Trading financial markets involves significant risk, and you should only risk capital you can afford to lose. Past performance is not indicative of future results.