Daily Volume-Profile Levels

VWAP (Volume-Weighted Average Price) is the fair value anchor for the day, calculated by weighting each trade's price by its volume. Institutional desks use it as a benchmark: buying below VWAP is considered accumulation; selling above is distribution. Price tends to revert to VWAP during low-momentum periods, making it a reliable mean-reversion target on intraday scalp setups.

The standard-deviation bands around VWAP define statistically extreme price extension. A touch of +1σ signals the first overextension zone — moderate fade setups with tight stops. The ±2σ band is used by scalpers for high-conviction counter-trend entries, where price is statistically stretched and volume is confirming exhaustion. Band breaks with expanding volume often indicate trend continuation rather than reversal.

The Point of Control is the single price level where the largest volume transacted during the session. It acts as the gravitational center of the day's Market Profile — price tends to revisit and consolidate around the POC. In trending conditions, a POC that migrates directionally signals that institutional volume is building position at progressively higher or lower levels.

The Value Area is the price range containing 70% of the session's volume — the zone where the market agreed on price. Breaks above VAH with volume are often genuine trend initiations; fades from VAH in low-volume environments offer high-R rejections. Breaks below VAL trigger similar mirror logic. Inside the value area, the market is balancing; outside it, the market is trending.