Anna Coulling > Trading education > Learn how to read the VPOC histogram and learn how low volume nodes will help you to stay in the trend

The VPOC histogram gives traders a visual map of where volume is concentrated at each price level. The longest bar (the VPOC) represents the price where the most buying and selling activity happened — this is where the market found the most agreement.On the other side of the spectrum are Low Volume Nodes. These appear as narrow gaps or valleys in the histogram and indicate prices where the market had little interest. Because of the lack of liquidity and participation, price tends to move quickly through LVNs. Understanding this dynamic is key to staying aligned with strong trends and avoiding getting trapped in low-conviction ranges.

Learn how to read the VPOC histogram and learn how low-volume nodes will help you to stay in the trend

00:22

Introduction to Volume Point of Control

00:22

The video focuses on a single time frame on the VPOC histogram, specifically the Nasdaq NQ future June contract on a 2-minute chart. The only indicator shown is the volume point of control (VPOC), which marks the highest volume concentration on the chart, highlighted at the 25,090 level with a dashed yellow line.

00:55

Significance of Volume Point of Control

00:55

This segment explains the concept of volume point of control, represented by a yellow dashed line, indicating the price level where trading volume is highest. It is considered a fair value area where price shows no strong bullish or bearish bias. When price is at this level across multiple time frames, it tends to congest, making it a critical area for analysis.

01:29

Volume as Support and Resistance

01:29

The volume point of control is explained as a volume display on the Y axis, analogous to how price functions in support and resistance analysis. Dense volume regions on the histogram indicate areas where price is likely to encounter support or resistance, leading to congestion phases when price reaches these regions.

02:02

Price Action Around VPOC

02:02

The speaker explains the volume point of control histogram, which displays volume levels in real time, highlighting areas of high, low, or medium volume. They demonstrate how price action behaves when it breaks away from the volume point of control, noting a significant volume injection and buying before entering a congestion phase and starting a breakout.

02:33

Low Volume Regions and Price Movement

02:33

The speaker explains the significance of low volume regions in a volume histogram. These regions indicate areas where the price tends to move quickly without pausing, as there is minimal volume to provide support. The price generally passes through these low volume zones until reaching the extreme ends of the histogram, where different behavior may occur.

02:59

Impact of Low Volume Nodes on Trading

02:59

The speaker discusses observing a bounce in price action, noting some buying activity leading to a minor reaction against a bearish trend that emerged after breaking away from the volume point of control. They emphasize the importance of low volume nodes on the chart, explaining that as price approaches these areas, it tends to move through them quickly, which was confirmed in this instance.

03:26

Volume Building and Congestion Phase

03:26

The segment explains the significance of volume building as price moves into a congestion phase. It highlights the volume point of control and the volume histogram, emphasizing how interpreting volume on the Y axis can help traders understand whether the price will congest at a node or move quickly through it, which can influence trading decisions.

03:58

Summary and Final Thoughts

03:58

The speaker concludes the video by emphasizing the importance of maintaining a position within a trend. They express hope that the audience enjoyed the content and hint at more videos to come, ending with a friendly farewell.

By Anna Coulling – creator of volume price analysis

By Anna Coulling – creator of volume price analysis