Swing Volume Profile Pro

The Swing Volume Profile Pro indicator builds a dynamic volume distribution profile for each completed swing leg, distributing candle volume proportionally across price bins to identify structural value zones, POC, and buy/sell imbalances. This tool anchors volume data to actual market structure rather than arbitrary time intervals, allowing traders to see where participation concentrated during specific impulse or corrective moves.

Usage

The Usage section describes how the script can be used to analyze market structure through volume. Unlike standard session-based profiles, this tool anchors each profile between confirmed pivot highs and lows.

• Identifying Value: The widest bar in any profile represents the Point of Control (POC), indicating the price level with the highest trading activity. The Value Area (shaded or outlined) represents where 70% of the swing's volume occurred.
• Support and Resistance: The POC zone extends rightward until a new swing is confirmed. These extended zones often act as future support or resistance levels.
• Sentiment Analysis: By enabling the Delta Profile, bins are colored based on buy/sell dominance (green for bullish dominance, red for bearish). This helps identify "absorption" where, for example, a bullish swing might show high sell volume at the top, signaling potential exhaustion.
• Mean Reversion: The Swing VWAP displays the volume-weighted fair value for that specific move. Traders can use this to identify returns to average value within a trend.

Details

The script utilizes several advanced logic systems to ensure accuracy:

• Candle-Range Distribution: Instead of assigning all volume to the closing price, it uses a TPO-like allocation. If a candle spans multiple price bins, its volume is distributed proportionally based on how much of the candle's range overlaps each bin.
• CME Expansion Method: The Value Area is calculated by starting at the POC and expanding toward the adjacent bin with the highest volume until 70% of the total volume is captured. This reflects the standard algorithm used by major exchanges.
• Real-Time Updates: While historical profiles are locked once a swing is confirmed, the indicator continuously builds a "forming" profile (rendered in gray) for the current active move, providing live insights into evolving volume distribution.
• Structural Filtering: To avoid clutter, the indicator includes a noise filter that ignores swings smaller than 0.3x the 200-period ATR.

Settings

• Swing Detection Length: Sets the lookback period for pivot detection. Higher values capture macro swings; lower values capture micro-swings.
• Profile Bins: Defines the price resolution. Increasing this creates more granular profiles with thinner bars.
• Volume Profile / Heatmap: Toggles between horizontal histogram bars and a density heatmap visualization.
• Delta Profile: Enables color-coding for bins based on buy/sell dominance.
• ZigZag: Toggles the visual line connecting the pivots.
• POC Line & Zone Fill: Controls the display of the Point of Control and its shaded price bin.
• Value Area: Toggles the High/Low lines representing 70% of the volume.
• Swing VWAP: Displays the volume-weighted average price for the specific leg.

FAQ

How do I interpret a POC at the extreme of a swing? When the POC is located at the very top of a bullish swing or bottom of a bearish swing, it often indicates a "climax" or exhaustion, where heavy volume was met by opposing orders.

Does this indicator repaint? The confirmed historical profiles do not repaint. The current, active swing profile updates in real-time as new bars form, but once a new pivot is confirmed, the previous profile is finalized.

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.