High- and Low-Volume Nodes

What this unit covers

Learn to recognise high-volume nodes, where the market spent a long time, and low-volume nodes, which it crossed quickly, on a real volume profile.

By the end you will be able to

• Identify a high-volume node as a wide bulge where the crowd traded heavily.
• Identify a low-volume node as a thin gap the market crossed quickly.
• Explain why each tends to behave differently if price returns to it.

How it starts: A Chart With a Question in It

1. A stock spent weeks trading around 480 rupees a share.
2. It also crossed 510 to 530 rupees within a single session.
3. Why would price return to those levels differently?

Words you will meet

High-volume node

A price zone where a stock traded heavily for a long stretch, shown as a wide bulge on the volume profile.

Low-volume node

A price zone a stock crossed quickly with little trading, shown as a thin gap on the volume profile.

Volume profile

A sideways bar chart beside the price axis showing how much trading happened at each price.

In this module: Market Profile & Volume Profile

1. Auction-Market Concepts
2. Point of Control and Value Area
3. High- and Low-Volume Nodes (this unit)
4. Contextual Use and Limitations