High Volume Node or HVN

An area inside of a market profileA way of reading the market that recognizes either time spent or volume traded at a particular price level. A market profile can be either made up of “TPO’s” (time price opportunities), or volume. TPO’s measure how much time was spent at a particular price, while volume-based market profiles measure how much volume traded at a particular price. Generally, market profile is used in the trading of futures, especially the /ES. ShadowTrader utilizes volume based profiles. where a very large amount of volume has traded. These areas generally act as magnets in the market and when they are tested the market tends to slow or bog down in that area. Although the point of controlAlso called “POC” for short. The level in the futures inside the value area where either the greatest amount of volume traded in the prior session, or the greatest amount of time was spent as measured by the number of TPO’s going across. Measured this way, the POC would be the widest part of any given market profile. While ShadowTrader calculates its value areas and points of control using volume exclusively, we are always very aware of where the TPO POC is and it’s relation to current prices or patterns in the profile. Both are very important. from the prior session is the most obvious HVNHigh Volume Node. An area on the market profile that would look very wide on a composite profile that has volume histograms on it's Y axis. In general, markets are pulled towards high volume nodes and reject away from low volume nodes. This is why the bottoms and tops of single prints or spikes are usually supportive or resistant. to look for, such an area need not be from the prior session. It’s important to look at a profile that encompasses many days back to identify where past HVN’s are.