NQ - Volume Profile on Day Chart

CME_MINI:NQ1!   Futuros NASDAQ 100 E-mini

Using a composite volume profile and setting the bars to significant lows in the last couple of years, you can see that the VPOCs (Volume Point of Control) are almost perfect.

By using a hollow Composite Volume Profile in conjunction with a Solid Volume Profile, you can spot-check where low and high volume nodes are on different time-scale profiles.

What does all of this mean? Basically, my thesis regarding volume profile, which is shared by some, is that liquidity will be attracted to the low volume profile nodes. Liquidity will find a presence in these depressions, causing prices to gravitate to the local area, filling in the node to build a shelf. This allows for a stronger base or foundation to continue its positive drift upward. However, caution is necessary, as this strategy can work against bulls if the price gets trapped under a substantial shelf, making it harder to climb upward.

Composite Volume Profile indicator below

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