A Fixed Range Volume Profile is a technical analysis tool that displays trading activity over a specific price range. It shows the levels where the most trading volume occurred, highlighting key support and resistance zones like the value area low (VAL), point of control (POC) and value area high (VAH) of the range. Traders use ranges to identify areas of strong buying or selling interest.
Example:
A trader applies a fixed range volume profile to Bitcoin’s price movement between $100,000 and $124,000. The tool reveals the POC at $105,000 and VAL around $100,000 suggesting strong support levels.