The present invention is directed to a method for providing data element placement in a storage system via a Dynamic Storage Tiering (DST) mechanism, such that improved system efficiency is promoted. For example, the DST mechanism may implement an algorithm for providing data element placement. The data elements (ex.—virtual volume hot-spots) may be placed into storage pools, such that usage of higher performing storage pools is maximized. Hot-spots may be detected by dynamically measuring load on LBA ranges. Performance of the storage pools may be measured on an ongoing basis. Further, the hot-spots may be ranked according to load, while storage pools may be ranked according to measured performance. If a hot-spot's load decreases, the hot-spot may be moved to a lower performing storage pool. If a hot-spot's load increases, the hot-spot may be moved to a higher performing storage pool.