High- and low-volume nodes (HVN, LVN)

What it is

A high-volume node (HVN) is a bulge in the profile: a price area where a lot traded, which the market accepted. Price tends to slow and rotate there. A low-volume node (LVN) is a thin spot between bulges, where little traded because the market moved through quickly. Price tends to move through LVNs quickly again.

A very thin LVN is sometimes called a volume gap or void. There is no standard formula for what counts as a node; it's read by eye.

How to spot it

• Look for two or more bulges in the profile with a narrow waist between them.
• The bulges are HVNs; the waist is the LVN.

How to use it

• Expect support or resistance at the edge of an HVN, and fast movement through an LVN.
• Put stops on the far side of an LVN rather than inside an HVN, where price can chop around.
• Target the next HVN once price breaks through an LVN.

Common mistakes

• Reading nodes from a profile built over too little data.
• Forgetting that candle-built profiles can create thin spots that a tick-built profile wouldn't show.

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