The core idea behind volume distribution
A classic chart tells you volume per unit of time. Volume distribution flips the question: how much volume traded at each price? Moving from the time axis to the price axis is what makes liquidity visible, because prices where large volume was absorbed become references the market returns to.
price ^ | ███ <- LVN: thin, price moved fast | ████████████ <- HVN: heavy, value area | ██████████ | ██ <- LVN: void, low acceptance +---------------> volume traded at that price 48 equal price bins across the visible range
The practical difference between HVN and LVN
HVN — high-volume node
- Meaning
- acceptance and balance at that price
- Typical behaviour
- slowdown, sideways rotation, price magnet
- Use
- sensible profit-taking areas; breakout quality check
LVN — low-volume void
- Meaning
- fast rejection, thin volume
- Typical behaviour
- quick traversal, accelerated moves
- Use
- poor places for a tight stop-loss
Using liquidity zones for risk management
- ▸A stop behind an HVN node is more sensible than one inside an LVN void, where moves accelerate.
- ▸A breakout that races through a wide low-volume void often needs a retest before continuing.
- ▸Volume built well away from current price marks a reference level the market may revisit.
- ▸A reversal pattern landing on the edge of a volume node gives you one level supported by two independent reasons.
Limits to keep in mind
Zones are computed from the visible range only, so zooming or changing timeframe redraws them — that is correct behaviour, not a bug. Crypto volume is also published per venue, so the exchange you pick changes the shape of the distribution.
Volume comes from the same candle request as the selected venue — no extra call and no API key.