Uniform Volume Profile

The Uniform Volume Profile indicator visualizes volume distribution by proportionally allocating a candlestick's volume across price levels based on its price range. This provides a more granular view of market interest and liquidity compared to standard volume profiles that assign volume to a single price point.

Usage

The Usage section describes how the script can be used to identify key areas of market activity. By distributing volume uniformly across a bar's high-low range, traders can more accurately pinpoint support and resistance zones based on where volume was actually transacted.

• Identifying High-Volume Nodes: Use the histogram to find price levels where the most volume has accumulated over a specific lookback period. These areas often act as significant support or resistance.
• Point of Control (POC): The longest bar in the profile represents the POC, indicating the price level with the highest traded volume. The script includes built-in alerts for when price crosses this level.
• Visual Analysis: The gradient coloring allows traders to instantly distinguish between high-activity and low-activity zones.

Details

The script executes by calculating the price range of each candlestick within the user-defined lookback period. Unlike traditional volume profiles that often use the close price or a single point, this tool calculates the intersection between each bar's range and the profile's price slices.

If a candle occupies multiple slices, its volume is divided proportionally. For instance, if 20% of a candle's range falls within a specific price bin, only 20% of that candle's total volume is added to that bin's total. The indicator also offers three gradient rendering methods (Uniform, Sigmoid, and Arctanh) to adjust the visual transition between high and low volume intensities.

Settings

• Lookback: The number of recent bars used to calculate the volume profile.
• Precision: Determines the number of horizontal slices (bins) displayed in the profile; higher values provide more detail.
• High Color: Sets the color for price levels with the highest volume accumulation.
• Low Color: Sets the color for price levels with the lowest volume accumulation.
• Gradient Change: Selects the mathematical function used to transition colors between High and Low (Uniform, Sigmoid, or Arctanh).

FAQ

How do I interpret the Point of Control (POC) in this script? The POC is the price level where the volume histogram is at its maximum length. It represents the most heavily traded price area within the lookback period and often serves as a magnet for price action.

What is the benefit of "Uniform" distribution over standard volume profiles? Standard profiles often assign the entire volume of a bar to a single price (like the close). Uniform distribution spreads that volume across the entire range (High to Low), providing a more realistic representation of where trades occurred.

How can I access the Uniform Volume Profile? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.