The Balcony Map: Where Price Finally Made Sense
- A Power Cut and a Family Conversation
- The Map Hidden Inside the Chart
- Understanding the Rules Without Fear
- When the Lights Returned, So Did Clarity
A Power Cut and a Family Conversation
The power went out just after sunset. Ceiling fans slowed, lights vanished, and the apartment building slipped into evening silence. On the balcony, four members of the Sharma family gathered with cups of tea to escape the heat.
Vivek, who ran a small transport business, looked irritated. Sunita, his wife, sorted vegetables for dinner. Their daughter Naina, preparing for MBA entrance exams, flipped through notes. And Raghav, Vivek’s elder cousin, visited home for a few days. Raghav worked with institutional trading desks but rarely spoke about markets at home.
Vivek broke the silence. “I don’t understand one thing. Every time I buy a stock, price keeps moving around the same zone for days. When I finally sell out of boredom, it suddenly moves.”
Naina laughed. “Maybe the stock is waiting for you to exit.”
Raghav smiled quietly. “Actually, price often stays around certain levels for a reason.”
Vivek turned. “You mean support and resistance?”
Raghav shook his head. “No. Something deeper. It’s called Volume Profile. It helps show where most trading activity happened.”
The Map Hidden Inside the Chart
The building generator kicked in, but no one moved inside. Raghav explained.
“Most charts show time on the bottom and price on the side. Volume Profile flips that idea. It places volume on the side of the chart instead of the bottom.”
Naina asked, “Why does that matter?”
“Because it shows where trading happened, not when,” Raghav replied. “Volume Profile displays how much buying and selling occurred at each price level. Some prices see a lot of activity. Others see very little.”
“The most important level is called the Point of Control, or POC. That is the price where the highest volume traded. In simple terms, it’s a level where many market participants were active.”
Vivek leaned forward. “So that’s why price keeps coming back to the same zone?”
“Yes, Markets often revisit areas where a lot of trading previously occurred. These levels tend to attract attention again.”
Understanding the Rules Without Fear
Sunita asked, “Is there a formula for this?”
Raghav nodded. “The calculation is handled by the charting system. It adds up traded volume at each price and plots it horizontally. You don’t need to calculate it yourself. What matters is understanding how to read it.”
“There are three key ideas. First, High Volume Nodes. These are price areas where heavy trading took place. Price often moves more slowly there because buyers and sellers show interest.”
“Second, Low Volume Nodes. These are price areas with less trading activity. Price often moves more quickly through these zones.”
“And third, the Value Area. That’s the range where roughly seventy percent of trading happened. Inside this range, price tends to spend more time. Outside it, price can feel stretched.”
Naina nodded. “So how does this help a trader?”
“When price is inside value, many traders prefer to wait. When price moves away from value and fails to continue, it often returns toward that range. If price moves away with sustained activity, it can indicate changing conditions.”
Vivek smiled. “So I shouldn’t trade in the middle all the time.”
Raghav nodded. “Volume Profile encourages patience.”
When the Lights Returned, So Did Clarity
The lights flickered back. The fan resumed its hum.
Vivek looked thoughtful. “This explains why I kept trading without clarity. I never knew where actual interest was.”
Raghav nodded. “Volume Profile is studied across stocks, futures, commodities, and other traded markets. Wherever trading happens, volume leaves information behind.”
Naina smiled. “It’s like knowing where the crowd gathers before deciding where to stand.”
Raghav stood up. “Platforms like the Navia All In One App can make it easier to study these levels clearly.”
As dinner plates were set, Vivek felt lighter. The market no longer felt random. It had a structure. And that evening, he learned how to observe it more calmly.
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DISCLAIMER: This story is a fictional illustration created for educational purposes. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit. Full disclaimer: https://bit.ly/naviadisclaimer
