Imperial Research Volume profile
Volume profile, delta and TPO: which level holds?
Candles show where price went. Volume profile shows where trading actually happened. Levels with heavy volume tend to slow price down; thin areas tend to let it run.
Checked 3 November 2026
Show the solution
Solution: A. The point of control is the price where the most volume traded: both sides agreed on value there, so price often slows and reacts when it returns. A sits on it. B sits in a low-volume node, where price moved fast because few orders traded; levels there tend to break. C is a round number with no volume behind it. A heavy-volume level is a clue, not a guarantee.
Cancelled if a candle closes below the high-volume node.
Illustrative diagram, not market data.
The four words you need
| Term | Meaning | How traders use it |
|---|---|---|
| Point of control | Price with the most volume | Magnet and reaction level |
| Value area | Range holding about 70% of volume | Fair price; edges act as support and resistance |
| High-volume node | A thick part of the profile | Price slows, ranges, reacts |
| Low-volume node | A thin part of the profile | Price travels through quickly |
Single prints and absorption
On a TPO chart, a single print is a price visited in only one 30-minute period: the market moved through it fast, much like a fair value gap. Absorption is what you see in delta when aggressive orders keep hitting a level and price does not move: a large passive order is soaking them up. Both are clues, not guarantees, and they work best combined with structure.
Questions
What is volume profile?
A histogram of traded volume at each price over a period, drawn sideways on the chart. The longest bar is the point of control; the band holding about 70% of the volume is the value area.
What is the difference between volume profile and TPO?
Volume profile counts contracts traded at each price. TPO (time price opportunity) counts how many 30-minute periods price spent at each level. Both show where the market found value.
What is delta?
The difference between volume traded at the ask and at the bid. Positive delta means aggressive buyers dominated. Strong buying into a level with little price progress suggests absorption by sellers.
Does volume profile work on forex?
Spot forex has no central volume, so profiles there use tick volume or futures data. For gold and the Nasdaq, futures volume is the cleaner source.