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Advanced Option Lessons

A hands-on options curriculum covering real trading concepts. Read the lessons, work through examples, and test your knowledge.

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Module 4: Technical Analysis & Charting MechanicsIntermediate 20 Min

Lesson 4: 4.3: Volume Analysis & Volume Profile (VPVR/POC)

Integrate trade volume into charting, understanding Volume Profile, Point of Control (POC), and Value Areas.

1. Volume Profile vs. Time-Based Volume

Standard volume bars show total trades executed in a given time bar. Volume Profile plots volume relative to specific price levels over a timeframe, mapping out high and low liquidity areas.

The Point of Control (POC) is the exact price level where the maximum volume was transacted, acting as an anchor. The Value Area represents the price range where 70% of total volume occurred.

★ Trading Rule: Prices tend to traverse through low-volume nodes quickly (volume gaps) and stall or consolidate inside high-volume nodes.

Volume by time interval next to a volume profile showing the point of control, the value area and a low-volume node
Left: volume by time, how much traded in each interval. Right: volume at price, how much traded at each price. The point of control (POC) is the busiest price (104). The value area holds about 70% of the volume; here the 103 to 105 bins hold 250 of 360 contracts (69.4%). A low-volume node (LVN, at 108) saw little trading. Exact value-area boundaries depend on your platform settings. Volume shows participation; it does not guarantee a direction. Illustrative data.
Interactive Option Simulation Lab

Interactive Volume Profile Canvas

LAB SIMULATOR ACTIVE

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
Point of Control (POC):$100
Value Area (VA) Width:20 points
Value Area High (VAH):$110
Point of Control (POC):$100
Value Area Low (VAL):$90
VOLUME PROFILE INTERACTIVE CANVAS
$120
$117
$114
$111
$108
$105
$102
$99
$96
$93
$90
$87
$84
$81
$78
VAHPOC (FAIR VALUE)VAL
• Notice how price finds repeated acceptance and support near the high-volume POC, while accelerating rapidly when exiting the Value Area limits.

KNOWLEDGE RECONNAISSANCE

Q01.

What is the 'Point of Control' (POC) in a Volume Profile?

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