Setup 8 · HVN Rejection

Level: intermediate · Target R:R: 1:2 to 1:3 · Window: any active session

The HVNs (high volume nodes) of the volume profile are zones of agreement: buyers and sellers traded there in large quantity, price was accepted there. When price comes back to an HVN from the outside, it tends to stick to it and then move away, because the participants who took positions there defend their average price. The footprint shows that defense in the form of absorption.

Procedure

1. Identify the HVN on the previous day's or the week's volume profile: a clean horizontal peak, several ticks wide.
2. Price approaches: switch to the 1-minute footprint and watch the delta in the direction of approach. It slows down.
3. The heatmap confirms: a dense zone (orange, red) at the HVN's level, the resident liquidity is indeed there.