This describes a range of prices where there is a particularly high amount of volume or bulge in the profile.
Why is it significant? Think of why it would have so many contracts…why did so many trades execute at these prices?
When trading through HVN’s or VPOC’s, the market tends to be “stuck in the mud” or my favorite example:
Prices trade much like a golf ball bouncing in the rough. (see above) are high volume nodes.
But there are times when you have a bulging portion of the profile that does not have
enough contracts traded there to make it a VPOC. This is described as an HVN.
See also LVN – Low Volume Node