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The Low Volume Node LVN and High Volume Node HVN make up an
important part of the volume profile trading strategy. It is possible to break a
profile into multiple minor profiles and have multiple scalping points based off
of the LVN and HVN points.
6.1 depicts a large difference in volume at 1.0910, with price being rejected
multiple times.
In order for price to break through this level to the upside, it must pass through
quickly on higher volume, any weak attempt to challenge this area will be met
with immediate resistance, or it may turn into a magnetized area slowly filling in
the volume void. Price must pass through quickly if it is to move to the upside
because traders that are trapped near the blue line are looking to offset their long
positions. However, if price quickly goes through the area they will be holding a
winning position and will be more likely willing to hold on to it. This
phenomena is based on common crowd psychology.
This distinct volume void is referred as a Low Volume Node (LVN), a distinct
area where trading interest drops off. An LVN with little to no volume acts as a