Buying every touch of POC because the level must hold.
02 / Volume Profile
Map the market with POC, VAH and VAL
A profile groups volume by price. It maps activity when its period is clearly defined and its levels are not treated as guaranteed support or resistance.
What you need to understand
Choose the period
A session profile covers one session. A composite combines several days. A visible-range profile depends on the chart zoom. Do not compare levels from different periods without stating why.
Read the three reference levels
POC is the price with the most volume. VAH and VAL bound an area containing a chosen volume share, often 70%. That percentage is not a bounce probability or a win rate.
Read shape without making it a signal
The book presents D, P, b and double-distribution profiles. They summarize observed activity. Shape alone establishes neither participant identity nor the next direction. An untested old POC is a reference, not a mandatory magnet.
5 220VAH
5 200POC
5 180VAL
Worked example
Book example: VAL 5,180, POC 5,200, VAH 5,220. At 5,216 price is inside value; at 5,231 it is above. Ask not only where price is, but whether sustained trading is being accepted outside value.
Connect the map to the open and observed response. If new value forms, update the scenario instead of defending old levels.
Simulation exercise
Mark a completed session’s POC, VAH and VAL. Hide the next session, write two hypotheses, then replay it. Record observations that would require changing your view.
Source: TUNTRADER book — Wajdi Mansour, PDF file pages: 40, 42, 43, 46.
Content summarized and adapted for the site, with calculations made explicit. Examples are not current recommendations.
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