High Volume Node (HVN)

High Volume nodes (HVN's) are a volume profile concept. HVN's are areas where there is a peak in trade volume on a volume at price histogram.

HVN's are initially created as a result of areas of consolidation. During this period both sides of the market are actively involved and the period of time spent at this price level is usually high as a result. During this time period the market has "found value" and trading at this level is sustained.

Because there is a lot of business done in that area, HVN's imply "fair value." When price approaches a previous HVN, the typical behavior is to spend time in this area and not rush through because this was a previous "fair value" area.

An HVN at 4905 Spot and how it was protected on 11-05-2012

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