A hands-on options curriculum covering real trading concepts. Read the lessons, work through examples, and test your knowledge.
OVERALL ACADEMY PROGRESS
Free Lesson
Every lesson is free to read. Subscribe to add Signal Desk, progress tracking, PDF downloads and the lesson tutor.
Lesson 4: 11.4: High Volume Nodes (HVN)
Analyze price levels of heavy transaction history and fair value agreement.
1. What are High Volume Nodes?
High Volume Nodes (HVNs) are prominent peaks in a volume profile where a significant concentration of trading activity has occurred.
These nodes represent historical price levels where both buyers and sellers found high utility and were willing to transact heavily. HVNs act as market magnets, slowing down price movement and causing price to consolidate or range around them.
★ Price Consolidation: When price approaches an HVN, expect it to spend a considerable amount of time chopping sideways as supply and demand are in equilibrium.
2. Trading with HVNs
• Strong Support/Resistance: Historic HVNs are highly reliable levels for placing profit targets or initiating range-bound trades.
• Transition Zones: Because price moves slowly through HVNs, they act as massive roadblocks on a chart. If price manages to break cleanly out of an HVN, it will often move rapidly toward the next node.
Click to enlargeInteractive Volume Profile Canvas
Volume profile plots the cumulative volume traded at specific price levels, revealing the Point of Control (POC - price of highest volume) and the Value Area (where 70% of transactions occur).
Profile Controls
KNOWLEDGE RECONNAISSANCE
How does price typically behave when it enters a major High Volume Node (HVN)?
More lessons in this module
- 11.0: Introduction to Volume Profile
- 11.1: Building a Volume Profile
- 11.2: Point of Control (POC)
- 11.3: The Value Area (VAH & VAL)
- 11.5: Low Volume Nodes (LVN)
- 11.6: Composite Profiles
- 11.7: Volume Profile Strategies
- 11.8: Practical Application: Profile Playbook
Signal Desk is where you practice this on real stocks: real option chains (about 15 minutes delayed), the Trade Check and a paper-trading account that risks no real money. Join to add it, your progress tracking and PDF downloads.