Recently, I’ve been researching the VPVR indicator and found that this tool is really helpful for judging market structure.

Many traders only look at candlesticks and regular volume histogram bars, but the VPVR indicator can actually tell you more clearly at which price levels the trading volume is concentrated. Unlike traditional volume, which is displayed along the time axis, VPVR is laid out along the price axis—so you can see which price points are the market’s hotspot areas.

In short, the VPVR indicator has a few core concepts worth paying attention to. First is the Point of Control (POC), which is the price level with the densest trading volume; it usually becomes a strong support or resistance. There are also High Volume Nodes (HVN). These are areas with high trading volume, indicating that price has spent time there, making support and resistance more likely to form. Conversely, Low Volume Nodes (LVN) have low trading volume; price often passes through quickly, and sometimes they can even be a signal of a breakout.

How do you use the VPVR indicator in real trading? From my experience, when price is approaching an HVN, you should be especially cautious, because a large number of orders are stacked there, which likely creates strong resistance. On the other hand, if price is about to reach an LVN, rapid fluctuations may occur—in that case, short-term traders can take advantage of the opportunity. Also, when the POC is broken, it often suggests that the trend may be changing, so stay on alert.

When it comes to judging consolidation and trends, the VPVR indicator is also useful. Areas with high trading volume suggest that price repeatedly oscillates there, while areas with low trading volume may indicate channels of a fast rise or a fast fall. So by looking at VPVR, you can roughly tell whether the market is currently consolidating or trending.

During pullback trading, it can also be used. Finding levels to place orders around HVN often results in a higher success rate. When taking profit or closing positions, looking at the POC or HVN is also a good reference—when you are close to these levels, the probability of making profit is higher.

However, it should be noted that the VPVR indicator is best used together with other technical tools; you can’t rely on VPVR alone for decision-making, because a single tool can easily lead you into pitfalls. By combining candlestick patterns, trend lines, and other indicators, you’ll get more stable results.