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.



In the chart above, 1040 is an HVN. Note how price holds in this area and we have a sustained sideways movement. We see a lot of TIME and VOLUME at this price.



In the above composite profile for 20 July 2010, note the HVN at around the 1091 area.

Compare to Low Volume Nodes (LVN).