Volume density control functions are designed for detector placement about 3 to 4 seconds upstream of the intersection at speeds about 35 or so. There are two primary functions...one is the timing of the initial green, based on the cars that have crossed the detector on red and are now queued at the intersection...and the other is gap reduction, to identify a good phase termination point under heavy traffic.
Check this for some good info...
http://www.ite.org/membersonly/itejourn ... A74A08.pdf