Volume Profile Analysis

The Volume Profile Analysis indicator provides a professional-grade volume breakdown within an on-chart dashboard to help traders assess buy versus sell dynamics, momentum, and market sentiment. By condensing complex volume data into structured metrics and visual progress bars, it enables a quick evaluation of market behavior without manual calculations.

Usage

The Usage section describes how the script can be used to interpret market activity through its visual interface.

• Intraday Analysis: Traders can use the dashboard to quickly gauge whether buyers or sellers are in control during a specific session.
• Momentum Shifts: By comparing the current candle's activity to the previous one, users can identify if market interest is rising or fading, which often precedes trend reversals.
• Sentiment Confirmation: The tool can be used to confirm signals from other indicators like RSI or moving averages. For example, a heavy buy volume percentage occurring at a support level provides stronger conviction for a long entry.
• Risk Management: Delta and volume imbalances help traders decide whether to hold a position or reduce exposure based on the strength of the move.

Details

The script executes several processes to generate the dashboard metrics:

• Data Gathering: It utilizes lower-timeframe price and volume data to calculate high-precision buy and sell volumes for the current and previous candles.
• Volume Allocation: Buy and sell volumes are estimated based on the candle’s range and closing price. A close near the high indicates stronger buying pressure, while a close near the low indicates selling pressure.
• Delta Calculation: Delta is calculated as the net difference between buy and sell volumes, highlighting the immediate pressure imbalance.
• POC Estimation: The script calculates an approximate Point of Control (POC) by averaging the high, low, and close, identifying the area where price agreement was highest.
• Visual Elements: A dynamic horizontal progress bar is plotted on the chart to show the live balance of trade activity, and a comprehensive table summarizes metrics including price range, total volume, and specific buy/sell percentages.

Settings

The settings are categorized into functional groups:

📊 Table Settings

• Table Position: Determines where the dashboard is located on the chart (e.g., bottom right, top left).
• Text Size: Adjusts the size of the text within the table cells (tiny, small, normal, large).
• Background Color: Sets the transparency and color of the dashboard background.
• Header Color: Defines the color used for the table headers.

🎨 Color Scheme

• Bullish: Sets the color for positive volume, upward trends, and buy signals.
• Bearish: Sets the color for negative volume, downward trends, and sell signals.
• Neutral: Sets the color for balanced volume or neutral signals.

📈 Progress Indicator

• Show Volume Progress on Chart: Toggles the visibility of the dynamic progress bar located above the price.
• Progress Bar Width: Adjusts the horizontal length of the on-chart progress indicator.

FAQ

How do I interpret the "Signal" column in the dashboard? The Signal column provides a simplified summary based on volume imbalance. A "Strong Buy" or "Strong Sell" is triggered when the Delta is significant and one side of the market accounts for more than 60% of the total volume.

What is the "Progress" bar in the table? The progress bar is a visual representation of the ratio between buy and sell volume. It allows you to see at a glance how much of the total candle volume is dominated by a specific side.

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