This page turns Volume Profile into a reproducible procedure. POC and Value Area are meaningful only alongside the settings and dataset that produced them.
In plain terms — First choose which trades go into the container and how wide its price bands should be. Only then can the software draw the profile.
Source and level — The settings below compare conventions documented by specific platforms; they do not identify one universally correct algorithm.
Step-by-step setup
- Define the range — current session, fixed period, anchored interval, or visible bars only. Avoid a range that changes while comparing two readings.
- State the session — trading hours, time zone, and whether any extended session is included.
- Choose the rows — ticks per row, fixed width, or a total number of bins. Wider rows combine different prices.
- Check the volume — trade volume, tick volume, base or quote volume, and the level of historical detail.
- Fix the Value Area — percentage, expansion algorithm from the POC, and tie-breaking rules.
Save these choices with the chart. “Daily POC” without a feed, session, and granularity is not a fully reproducible measure.
Sensitivity test
Reduce and then increase row width: if the POC, HVNs, or LVNs change substantially, the level depends on discretization. Repeat the test by moving the start of the range and including or excluding the extended session.
The test is not a search for the parameter that confirms a thesis. Its purpose is to identify which features remain visible under reasonable settings and which are fragile products of the setup.
When the profile is unreliable
Aggregated historical records may distribute volume among prices instead of using every trade. In fragmented markets, the feed may cover only one venue. Forex, indices, and CFDs may offer tick volume instead of traded volume; synthetic charts can alter the displayed prices and volume.
If two platforms disagree, compare the dataset, range, rows, and Value Area algorithm first. Do not assume that one is wrong merely because its POC or VAH differs.
Two implementations not to conflate
There is no platform-neutral Volume Profile. Official documentation shows concrete differences:
| Aspect | TradingView | Sierra Chart |
|---|---|---|
| Calculation data | Selects lower timeframes for each indicator; it may use trade volume, tick volume, or base/quote volume | Uses volume-at-price data; tick size and data quality determine the available detail |
| Rows | Row size/layout define the histogram's row count | Ticks per Volume Bar groups multiple ticks; the historical VAP multiplier can combine nearby levels |
| Value Area | Configurable percentage (70% by default); starts at the POC and compares adjacent rows, with documented tie-breaks | Configurable percentage; POC and Value Area can use the selected volume method, unless the option forcing total volume is enabled |
When reporting a level, record at least the platform, volume type, timeframe used for the calculation, rows, VA percentage, and tie-breaking rule. Without these fields the comparison is descriptive, not reproducible.
Sources
- Sierra Chart, Volume By Price Study — documents period types, ticks per row, tick-by-tick records, aggregated data, and profile calculations.
- TradingView, Volume profile indicators: basic concepts — explains periods, rows, volume types, configurable percentage, and its platform's Value Area algorithm.