Algorithm for Low Volume Nodes detection

I’ve had better results treating LVNs as “valleys between meaningful peaks” instead of just low-volume bins. First find HVN candidates with a smoothed profile, then look for local minima between adjacent HVNs where volume is below some fraction of both surrounding peaks. After that, filter by width and depth so you don’t tag every tiny dip as an LVN.

One thing that helped was normalizing by session/profile total volume and bin size before doing any detection. Otherwise the thresholds feel random across instruments and timeframes. Also worth separating structural LVNs from edge artifacts near the top/bottom of the profile, because those can look valid mathematically but trade very differently.

Low Volume Nodes (LVNs) in a Volume Profile (VP) histogram are identified as price areas with significantly low volume relative to surrounding nodes, typically indicating fast price movement or "rejection" zones. They are found by locating local minima between adjacent High Volume Nodes (HVNs), often defined as areas where volume is $\le$30% of the POC volume. 

Key Aspects of LVN Detection in VP Histograms Definition & Characteristics: LVNs represent areas of low liquidity ("gaps" or "air pockets") where price struggles to find acceptance. They are often found between two major high-volume clusters.

Detection Methods: Visual Inspection: Troughs or valleys in the 3D-style histogram, especially when using 3D-style profiles.

Algorithmic/Indicator-Based: Automated tools on platforms like TradingView (e.g., Volume Profile with HVN/LVN Detector) detect these by comparing volume against a percentage threshold of the Point of Control (POC), typically at or below 30%.

Significance: Price tends to pass through LVNs quickly, making them ideal for identifying rapid price action or potential "velocity" gaps. They can be used as target levels when trading a breakout from an HVN, and as potential stop-loss locations, often placed just beyond a major LVN to avoid high-liquidity zones.

3D/Advanced Profiling: Advanced profiling techniques can highlight "valleys" in historical volume that persist over time, confirming them as significant "paths of least resistance". 

Tools to detect LVN:

• PhenLabs LVN/HVN Auto Detection
• Volume Profile with HVN / LVN Detector
• Rolling LVN & HVN [UAlgo]