Volume Nodes: Why Some Prices Attract Action and Others Repel It
Volume nodes explain why price stalls at some levels and slices through others. They show where traders actually did business. If you want to understand why the market reacts at one price and ignores another, volume nodes are the reason.
What Is a Volume Node?
A volume node is a price where a significant amount of trading happened. Two types matter:
- High Volume Nodes (HVN) — heavy participation
- Low Volume Nodes (LVN) — barely any participation
These levels dictate how price moves, stalls, or accelerates.
High Volume Nodes (HVN): Magnets
High-volume prices are where the market spent time and agreed on value.
| Behavior | Meaning |
|---|---|
| Price slows down | The market sees value |
| Rotations build | Buyers and sellers active |
| Re-tests common | Market likes returning here |
HVNs act like magnets — price is attracted to them and often gets stuck.
Low Volume Nodes (LVN): Repellents
Low-volume areas are where the market moved fast because nobody wanted to trade there.
| Behavior | Meaning |
|---|---|
| Price rejects quickly | Market sees unfair value |
| Moves accelerate | Thin liquidity |
| Clean breakouts | Little resistance |
LVNs are air pockets — price doesn’t want to stick around.
Why HVN and LVN Matter
Because they tell you where:
- Liquidity is strong
- Volume is committed
- Breakouts will struggle
- Trends will accelerate
- Reversals will spark
This directly supports what you learned in Market Context.
How Price Behaves Around HVNs
Inside a high-volume node:
- Expect chop
- Expect rotation
- Expect failed breakouts
HVN trading is slow, sticky, and mean-reverting.
How Price Behaves Around LVNs
In low-volume areas:
- Price often moves fast
- Breakouts travel easier
- Pullbacks become shallow
LVNs act like highways through dead zones.
How HVNs and LVNs Form
The market builds HVNs during:
- Balance
- Chop
- Heavy volume sessions
LVNs form during:
- Imbalances
- Trend bursts
- News-driven runs
LVNs often connect imbalance legs discussed in Balance vs. Imbalance Zones.
How to Use Volume Nodes in Your Trading
1. Use HVNs as Targets in Ranges
Price gravitates back to them.
2. Use LVNs as Targets in Trends
Price moves quickly through them.
3. Avoid Trading Inside HVNs
Too much chop — low reward.
4. Watch LVNs for Breakout Acceleration
If the market enters an LVN with momentum, expect continuation.
The Bottom Line
HVNs and LVNs explain the market’s personality. HVNs attract. LVNs repel. Once you read volume nodes correctly, you stop being surprised when the market stalls or explodes — because you finally understand the path it prefers.