High Volume Nodes (HVN's) act as price magnets

High Volume Nodes (HVN's) are areas where lots of trading has taken place, price will often continue to trade in a choppy fashion around these areas. Previous areas of high volume can act as price "magnets" when the price revisits the level after some time.

In the following chart I have created a volume profile of last 10 weeks. Today's increase inflation data from UK has sent GBP/USD higher, and it reached out to this prominent HVN. It also broke through an LVN, which might provide support in the future (i.e. the rule "prior resistance becomes support").

However, BREXIT and "Article 50" is going to be big issue next week (UK triggering formal leaving EU process on 29th March), so I expect a lot of volatility over the next few days.

More information on the Composite Profile indicator can be found here.

Took a couple of nice trades on the GBP/USD today using this HVN, and the LVN above it.