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10. Volume Profile
Understand value areas, point of control, and liquidity gaps.
Where Price Meets Volume
Unlike standard volume (which plots volume by time on the x-axis), Volume Profile plots volume by price level on the y-axis.
- Point of Control (POC): The price level with the highest traded volume. It acts as heavy gravity (support/resistance).
- Value Area: The range of prices where 70% of the volume occurred. Market makers love to keep price inside this area.
- Volume Voids (Gaps): Areas with very little volume. Price slices through these areas rapidly because there is no structural liquidity to stop it.