Session Volume allows you to see the pivotal VAL, VAH, and POC for each trading session.
NOTE the length of these periods differs between legacy assets such as stocks and the cryptocurrency markets.
Legacy markets: 6.5 hours - 9:30 AM to 4 PM (ET/New York)
Cryptocurrency markets: - 24 hours 7 days a week.
The VAL, VAH, and POC produced from Session Volume can then be used as support/resistance.
Session Volume allows you to see the pivotal VAL, VAH, and POC for each trading session.
NOTE the length of these periods differs between legacy assets such as stocks and the cryptocurrency markets.
Legacy markets: 6.5 hours - 9:30 AM to 4 PM (ET/New York)
Cryptocurrency markets: - 24 hours 7 days a week.
The VAL, VAH, and POC produced from Session Volume can then be used as support/resistance.
Key Points of the Lesson
UTILITY
Volume Profile Session Volume is useful to determine the key areas of each session, also of the previous week.
VAL, VAH and POC are important S/R levels for day traders, part of daily routine.
Naked POC’s are the main focus for swing traders.
IMPLEMENTATION
Session Volume (VPSV) on Tradingview ⇒ Row size 148, Value Area Volume 70.
Naked POCs ⇒ untapped POC from a previous session.
Generally, we expect a strong reaction when first approached ⇒ confluence is key!
3 key components:
Value Area High (VAH) ⇒ above fair value, look for shorts.
Value Area Low (VAL) ⇒ below fair value, look for longs.
Point of Control (POC) ⇒ area with the highest amount of volume horizontally ⇒ fair value, no new trading position.
PRACTICAL EXAMPLE
TIPS & TRICKS
If price claims the VAH of a range, forms a distribution pattern, and then falls back into the range there is 80% change of rotation to the VAL (and vice versa).
Context is very important.
Naked POCs ⇒ most volume transacted horizontally at that untapped level.
Untapped: price breaks away from POC ⇒ great majority of traders who entered positions at the POC but guessed the breakaway direction wrong, would like to exit at break even if possible.
When untapped POC is revisited ⇒ Many traders exit on the first touch, and others enter expecting the reaction.
Possible intraday setup: Naked POC and CC confluence.
Pre-setting limit orders is possible at these levels but we recommend to set an alert and check the reaction.
TAKE HOME MESSAGE
VAH, VAL and POC S/R levels are very useful intra-day.
Range rotation 80% change upon leaving and re-entering a range.
Set alerts and wait for reaction ⇒ example: POC and CC