medium · Volume Profile Analysis profile-anatomy
Two profiles share an identical total volume, an identical POC price, and identical session high and low. Profile A is a symmetric bell (a D-shape); Profile B is a P-shape — heavy volume concentrated in the upper third with a long thin tail of low volume extending down to the low.
Holding the 70% value-area rule fixed, how do the two value-area widths most likely compare?
- Identical, since equal total volume and equal POC force the 70% value area to span the same number of ticks in both
- Profile B's value area is narrower and sits high in the range, because its concentrated upper volume reaches 70% over fewer price levels
- Profile B's value area is wider, because the long low-volume tail must be included to accumulate 70% of contracts
- Profile A's value area is narrower, because a symmetric distribution always packs 70% into the fewest ticks
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