Definition
A chart tool that shows how much trading happened at each price level over a period, drawn as horizontal bars beside the chart.
The story
Regular volume bars show how much traded each minute or day. Volume profile turns that sideways and asks a different question: at which prices did the most trading happen? The single busiest price is called the point of control. Some traders treat high-volume prices as areas the market has accepted and low-volume prices as areas it moved through quickly.
Why you'll see it
It's popular with futures day traders, including on NQ (E-mini Nasdaq-100 futures) and ES (E-mini S&P 500 futures).
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms