Ice Cream Volume Profile

The Ice Cream Volume Profile indicator provides a unique visualization of volume distribution and price action density within the current visible chart range. It aims to identify high-activity price levels, sentiment shifts via Delta volume, and potential support or resistance zones using a stylized profile.

Usage

The Usage section describes how the script can be used to interpret market activity. The indicator calculates data based exclusively on the bars currently visible on the user's screen.

• Identifying High Activity: The script segments the visible price range into levels. The width and color of these segments indicate where the most trading activity (or price closes) occurred.
• Support and Resistance: Use the stacked levels to identify consolidated zones. Areas with high volume or frequent closes often act as significant support or resistance.
• Volume Sentiment: The "top" of the profile serves as a sentiment gauge.
  • Green: Bullish volume exceeds 55% of the total volume in the range.
  • Red: Bearish volume exceeds 55% of the total volume in the range.
  • Blue/Yellow: Indicates a neutral or balanced volume distribution where neither side exceeds the 55% threshold.
• Delta Analysis: By switching the "Volume Type" setting, users can see the net difference between buying and selling pressure for each specific price tier.

Details

The indicator utilizes the polyline feature in Pine Script to construct a dynamic, tapered profile on the right side of the chart. It processes data by tracking the high, low, close, and volume of every bar within the visible window.

The script divides the vertical space between the highest high and a calculated lower bound into eight distinct tiers. It then iterates through the visible data to count how many bars closed within each tier ("Points") and the total volume associated with those bars. This allows for a granular view of price distribution that updates automatically as the user scrolls or zooms the chart.

Settings

• Volume Type: Determines the data displayed in the profile labels. Options include "Volume" (total traded), "Points" (number of bar closes), and "Delta" (the difference between bullish and bearish volume).
• Bull Color: Sets the color used for the gradient representing higher volume or bullish bias.
• Bear Color: Sets the color used for the gradient representing lower volume or bearish bias.

FAQ

How do I change the range the indicator calculates?

Since this tool is based on the visible range, simply zoom in/out or scroll left/right on your chart. The profile will recalculate based on the bars currently shown on your screen.

What does the "Points" Volume Type represent?

"Points" counts how many times a bar has closed within that specific price level tier, providing a "Time at Price" style metric.

How can I access this indicator?

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