Low volume nodes form when one side of the market gets aggressive, creating gaps between value areas. On trending days, these pockets multiply and signal where new buying interest enters, shaping which setups to trade.
I tell this to a lot of traders. What forms low volume nodes is when one side gets aggressive, so it leaves like volume pockets in between the value areas. So if you have a value area like volume cluster, this is your value area high, this is your value area low, and then you get price just going up and down and then you have this breakout. This part right here, you would have like a low volume pocket and then new values forming. There were new buyers coming in and they found that there was more aggression, right? The one side came in, they were marketing in and there was not enough sellers to hold price lower. Usually when you have trending days, you see a lot of low volume nodes. So on these type of days, based on these two criteria, kind of dictates what type of day it is and what type of setups I look for.
