GlossarySession Volume Profile
Session Volume Profile
The Session Volume Profile draws a separate volume profile for each session, starting at the beginning of the session, with POC and Value Area. This lets you compare day by day (or week by week) where the market found value and whether that value is shifting.
How to read it
- POC migration: If the POC rises from session to session, value is moving up with the price; that supports an uptrend. If it stays put while the price rises, confirmation from volume is missing.
- Previous day's Value Area: If a session opens above or below the previous one's Value Area, the price often tests its edges. If it finds its way back in, it often runs through to the other edge.
- Open POCs: The POC of an earlier session that the price has not reached since is often revisited later.
Limitations
- Sessions follow your local time, not a market's trading hours. For stocks, a day therefore only contains the trading hours that fall within that calendar day.
- The approximation assumes that volume gathers around the middle of the candle body. It only shows buys and sells separately where the taker buy share is known.
- The first and the current session are often incomplete: the first starts with the loaded data, the current one changes until it ends.