LEVEL 3 · Market Structure & Order Flow · LESSON 11
Volume Profile
Learn how POC, VAH, and VAL describe the distribution of activity across prices.
LEARNING OBJECTIVE
Understand volume distribution by price and identify POC, VAH, and VAL.
BEFORE YOU START
Read the price scale, volume, and chart Sessions. The current NinjaTrader Help Guide lists Order Flow Volume Profile as an Order Flow+ tool available to lifetime license holders; verify availability in your installed version.
IN ONE SENTENCE
Volume Profile groups trading activity by price across a selected range. It is a historical distribution view that helps describe where activity was concentrated.
Basic concepts
POC (Point of Control)ExplainClose
The price level with the highest volume in the selected profile.
Value AreaExplainClose
A price region containing a target share of the profile's volume, according to the selected settings. A 68% setting is one starting point for study.
VAH and VALExplainClose
Value Area High (VAH) is the upper boundary; Value Area Low (VAL) is the lower boundary.
Software walkthrough
Menu placement may vary by platform version. Use the current official guide when a label differs.
- 01
Step 01
In chart Indicators, find Order Flow Volume Profile. The current Help Guide lists it as an Order Flow+ tool available to NinjaTrader lifetime license holders; verify current availability in your installed version.
Check: Confirm Profile range and boundary labels.
- 02
Step 02
Set Profile period to Sessions and check that its Trading Hours match the chart Session.
Check: Confirm Profile range and boundary labels.
- 03
Step 03
Set Profile Type to Volume. Start with the basic display and locate the largest single data point, the POC.
Check: Confirm Profile range and boundary labels.
- 04
Step 04
Set Value Area (%) to 68 as a learning starting point, then identify VAH and VAL. This percentage is configurable, not a market law.
Check: Confirm Profile range and boundary labels.
- 05
Step 05
Review Resolution, Ticks per level, and the historical range loaded on the chart. A profile cannot include data that the chart has not loaded.
Check: Confirm Profile range and boundary labels.
- 06
Step 06
Compare two historical Sessions with the same settings and describe differences in the profile shape without treating any level as a buy or sell signal.
Check: Confirm Profile range and boundary labels.
Concept diagram
Study scenario
Describe dense and thin areas in a static histogram; do not treat levels as signals.
The POC, Value Area, and its boundaries are calculations from selected data. They do not predict that price will pause or reverse there.
Common mistakes
Issue: POC varies with Session or data.
Check the input, version, session, data, or setting that controls this behavior.
Issue: Treating Value Area as a future guarantee.
Check the input, version, session, data, or setting that controls this behavior.
Targeted troubleshooting
- 01
The profile is incomplete: confirm that the chart has loaded data for the full requested range. A profile cannot calculate data that is not present in the chart.
- 02
POC, VAH, or VAL differs from another chart: compare Profile Period, Trading Hours, Resolution, Ticks per level, and Value Area percentage.
- 03
A historical chart lacks detail: review whether the selected Resolution supports the range. Finer data also uses more resources.
Lesson summary
- 01
Profiles group volume by price.
- 02
POC is the peak.
- 03
VAH/VAL bound the area.
PRACTICE EXERCISE
Record a historical Session, range, and Value Area percentage, then label the levels.
Use static, historical, or browser-local sample data only.
PRACTICE FEEDBACK
Why might two charts show different POC and Value Area for the same Session?
A self-check helps you review this lesson. It does not certify skill or affect your completion record.
FAQ
Is a 68% Value Area a fixed market law?
No. It is a configurable display percentage. The Help Guide describes 68% as a default and allows users to change it.
Does the POC mean price must return there?
No. POC is the largest single data point in the selected historical profile. It describes the selected range and does not guarantee future price behavior.
OFFICIAL REFERENCES
Checked against public documentation
This lesson paraphrases official material. Check the installed version for current interface details.
Education note
Software and market education only. No direction signals, live order instructions, or performance claims.
Trademark and independence
NinjaTrader® is a registered trademark of NinjaTrader Group, LLC. No NinjaTrader company has any affiliation with the owner, developer, or provider of the products or services described herein, or any interest, ownership or otherwise, in any such product or service, or endorses, recommends or approves any such product or service.