Trends/Volume and money flow

Volume profile

A sideways histogram showing how much volume traded at each price level.

Volume and money flowBest on 3M, 6M, 1YAlso called volume at price

Illustration of the volume profile shape. It is a sketch, not real price data.

What it shows

Instead of volume by time, volume profile shows volume by price. The price axis is cut into bins and the volume of each bar is put in the bin where it traded.

The longest bar shows the price with the most volume, called the point of control. The range holding 70% of the volume is the value area.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Divide the price range into bins.
For each bar, add its volume to the bins it covered.
Find the bin with the most volume (point of control).
Find the range around it holding 70% of the volume (value area).

Starting values: Bins 50; Value area 70%. These are proposed and will be tuned on real price data before launch.

How to read it

The shaded band marks the value area.
The solid line marks the point of control.
Prices with little volume have thin bars.

Status labels you may see

Label	What it means
Inside the value area	Close is within the 70% range.
Above the value area	Close is above the top of it.
Below the value area	Close is below the bottom.

What cancels it

Nothing cancels it.

What traders check next

The distance from price to the point of control.
How the profile changed over the period.
Whether there are gaps in the profile.

Limits

Depends on the period chosen.
Volume is split by assumption within a bar.
Bin size matters.

Try it in forecastviz

Open any ticker and choose Volume and money flow → Volume profile in the left menu.
Switch between 3M, 6M, 1Y to see how the picture changes.
Compare with VWAP and Anchored VWAP on the same chart.

Open on a ticker

Questions

What is the point of control?

The price with the most traded volume.

Why 70%?

It is a convention, roughly one standard deviation.