High Volume Nodes (HVNs) are price levels where significant trading activity has occurred. They act as strong magnets and support/resistance. Trade the bounce off an untested HVN for high-probability continuation entries.
- Identify HVN from prior session's volume profile (fat horizontal bar)
- Price approaches the HVN from above in current session
- Bullish reversal candle at HVN level (pin bar, hammer, engulfing)
- Volume spike on the rejection (CMF turns positive)
- Enter long on next candle open
- Stop: below the HVN level (tight. HVNs provide clean stops)
- Target: next HVN above, or prior session high
The freshness of the HVN matters. Yesterday's POC or a 3-day composite HVN is strong. A week-old HVN that's been tested multiple times is weak (each test drains its effectiveness). Track which HVNs are 'naked' (untested) vs already-touched.