Forex glossary
Volume Profile
Volume Profile allocates available volume to price bins over a chosen dataset. POC marks the highest-volume bin; Value Area contains a selected share, commonly 70%, under the platform's algorithm. Retail spot FX can use a provider's tick data; the profile describes observations rather than a probability map.
Illustrative example
How does it work in practice?
Assume three price bins contain twenty, fifty and thirty contracts. The middle bin is POC because it has the most volume; changing bin width or the session range can change the identified level.
A case to work through
The largest bin at one edge
Hypothetical bins 10–11, 11–12 and 12–13 contain volume of 60, 25 and 15.
- POC corresponds to the first bin because its volume of 60 is highest.
- The middle bin is not POC simply because of location; the 60% share refers to volume data.
What follows? State the POC bin, binning method and data range.
Example boundary: Different bin widths or ticks instead of contracts can change the profile.
From data to POC
Text description of the diagram
- Source and scope: Check volume type and the selected period.
- Price bins: Aggregate available volume using the chosen binning.
- Largest bin: POC comes from volume rather than the range midpoint.
A useful distinction
Volume Profile / Order flow
A profile aggregates volume by price; order flow can preserve sequence and classification of individual executions.
Check your understanding
Locate POC in an asymmetric histogram.
Show the answer and explanation
The third
It has the highest available volume.
Market data and interpretation limits
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Related terms
Sources and documentation
- TradingView – Volume Profile
Price-bin aggregation, greatest-volume POC and volume-share Value Area.
Document read: - BIS – foreign-exchange market structure
Fragmented FX trading and limitations of an individual source's market coverage.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.