In plain terms
Volume Profile shows how much volume was assigned to each price band during a selected interval. The profile's longest row is often called the POC.
How the term is used
It describes the historical distribution of trades by price. The Value Area collects a configured percentage of volume around the POC; 70% is a common convention. Definitions and the differences from Market Profile, the order book, and VWAP are covered in Volume Profile.
Limit
The range, session hours, row width, volume type, and Value Area algorithm change the POC, VAH, and VAL. These levels describe the dataset and do not guarantee support, resistance, or a future move. For a reproducible configuration, see Setting up Volume Profile.
Sources
- Sierra Chart, Volume By Price Study — documents volume by price, periods, ticks per row, and data requirements.
- TradingView, Volume profile indicators: basic concepts — defines POC and Value Area and describes configurable percentage, volume, and calculation method.