VOLUME PROFILE · D / P / b / B
Profile shapes, explained visually
A shape shows where the most volume traded. First watch how it forms. Then study one setup.
Before the letters: read the bars
Each horizontal bar represents a price area. A longer bar means more volume traded there. Height represents price; width represents volume.
Four stories to recognise
Read the diagram
POC = the longest bar. VAH = upper value area boundary. VAL = lower boundary. LVN = the trough between two volume concentrations.
Value area contains a selected share of volume, often 70%. Its boundaries are calculated by the platform; they are not necessarily the extremes of the profile.
SHAPE D
Price rotates around a value
Volume concentrates in the middle and thins at both ends: a balanced distribution.
How this shape forms
One example of formation, not the only possible path. The line represents price; the bars represent accumulated volume.
Price explores both sides
It moves up and down around a central area.
Volume accumulates in the middle
Repeated trading builds volume in that same area.
The belly of D appears
A wide centre with thinner extremes.
What to remember — D describes balanced volume. It cannot guarantee a range in the next session.
One setup, explained on the diagram
Rejection below VAL → rotation to POC
The left profile has already formed. On the right we then observe the price response around its levels. Points 1, 2 and 3 match the explanations below.
- 1
1 · Observe
Price goes below VAL. It could still keep falling: wait.
- 2
2 · Confirm, then enter
Price reclaims VAL, holds a retest and turns up. Selling absorption followed by this reclaim can support the reading. Prepare the buy here.
- 3
3 · Identify a target area
POC is the first target: the volume centre price may return to. The dotted path is a possibility, not an outcome.
Below the rejection low. Acceptance below VAL invalidates the return-to-value idea.
Premature entry
Buying as soon as price touches VAL.
Prepared entry
Wait for the excursion, re-entry and held retest.
When to skip this setup — Price builds volume below VAL rather than returning inside.
SHAPE P
Price rallies, then trades at the top
A thin lower stem and a thick upper belly: most volume is in the upper area.
How this shape forms
One example of formation, not the only possible path. The line represents price; the bars represent accumulated volume.
A fast rally
Price crosses lower prices with relatively little volume.
Trading concentrates at the top
After the rally, price oscillates in a higher area.
The belly of P fills
Volume is now thick at the top and thin below.
What to remember — P describes upper value. Watch whether that area holds or fails.
One setup, explained on the diagram
Upper value holds → upward resumption
The left profile has already formed. On the right we then observe the price response around its levels. Points 1, 2 and 3 match the explanations below.
- 1
1 · Observe
After P forms, price pulls back to the lower edge of upper value: VAL.
- 2
2 · Confirm, then enter
The decline stops progressing; price reclaims VAL and holds a retest. Aggressive selling without a lower low can support this reading. Buy only after recovery.
- 3
3 · Identify a target area
The top of the accepted area is a possible target. Continuation beyond it requires further evidence.
Below the reaction low. Acceptance below upper value invalidates this scenario.
Premature entry
Buying the top because “P = bullish”.
Prepared entry
Wait for a pullback and a visible defence of upper value.
When to skip this setup — Upper value is lost and a retest of VAL from below fails.
SHAPE b
Price sells off, then trades at the bottom
A thin upper stem and a thick lower belly: most volume is in the lower area.
How this shape forms
One example of formation, not the only possible path. The line represents price; the bars represent accumulated volume.
A fast decline
Price crosses higher prices with relatively little volume.
Trading concentrates at the bottom
After the decline, price oscillates in a lower area.
The belly of b fills
Volume is now thick below and thin above.
What to remember — b describes lower value. A past decline is not enough reason to sell.
One setup, explained on the diagram
Lower value holds → downward resumption
The left profile has already formed. On the right we then observe the price response around its levels. Points 1, 2 and 3 match the explanations below.
- 1
1 · Observe
Price rebounds towards VAH, the upper edge of lower value. It could still reclaim it: wait.
- 2
2 · Confirm, then enter
Buying stops producing upward progress. Price drops below VAH, fails to reclaim it on a retest, then turns down. Prepare the sell after that response.
- 3
3 · Identify a target area
VAL, the lower edge of that same value area, is the first possible target. A new low requires further confirmation.
Above the rejection high. Acceptance above VAH invalidates the sell.
Premature entry
Selling anywhere because “b = bearish”.
Prepared entry
Wait for the bounce to VAH, rejection and selling resumption.
When to skip this setup — Price reclaims VAH and builds new activity above it.
SHAPE B
Price builds two volume areas
Two bellies separated by a trough: two areas attracted trading, with less volume in between.
How this shape forms
One example of formation, not the only possible path. The line represents price; the bars represent accumulated volume.
One area builds
In this example, trading first builds a lower area.
Price changes area
It crosses the middle, where little volume accumulates.
A second area builds
Trading builds higher. Two bellies are separated by an LVN.
What to remember — B describes two distributions. The final profile alone cannot tell which formed first.
One setup, explained on the diagram
LVN holds → return to the upper area
The left profile has already formed. On the right we then observe the price response around its levels. Points 1, 2 and 3 match the explanations below.
- 1
1 · Observe
Price returns from the upper area to the separating trough: LVN. A touch alone is not enough.
- 2
2 · Confirm, then enter
Price briefly goes below LVN, reclaims it and holds above on a retest. The upward response confirms rejection of lower prices.
- 3
3 · Identify a target area
The upper distribution centre becomes a possible target. Do not automatically target the extreme of the whole profile.
Below the rejection low. Acceptance below LVN invalidates the return-to-upper-area scenario.
Premature entry
Buying LVN as guaranteed support.
Prepared entry
Wait for rejection below and a reclaim of LVN.
When to skip this setup — Price crosses LVN repeatedly without a clear response.
The useful question
“Where did volume build, and how does price respond when it returns?” A letter alone never triggers an entry.
P does not prove short covering; b does not prove long liquidation. Volume Profile measures volume, not time or trader identity. Some sessions fit none of these four shapes.
Check your understanding
A quick rally, followed by heavy volume at the top: which shape?
Show explanation
P. The thin stem represents the rally; volume then accumulates in the upper area. This alone is not a reason to buy.
Conceptual diagrams without a price scale. No real quotes, current signals or promised outcomes.
Original TUNTRADER schematic examples
Explore VAH, VAL and POC →