Volume Profile lower timeframe

The Volume Profile lower timeframe indicator displays the volume of transactions within specific price blocks over a user-defined lookback period using granular lower timeframe data. It provides a detailed visualization of market liquidity and volume concentration to help traders identify key support, resistance, and high-activity zones.

Usage

The Usage section describes how the script can be used to analyze volume distribution. Users can define a lookback period (e.g., the last 100 bars) and divide the price range into a specific number of horizontal blocks. The script then fetches OHLCV data from a lower timeframe (LTF) to accurately calculate how much volume was traded within each price block.

• Identifying High Activity: The Point of Control (POC) highlights the price level with the highest transaction volume, while the Time Point of Control (TPOC) identifies the price level where the market spent the most time.
• Bullish vs. Bearish Volume: By enabling the "Up Down Box" setting, users can see the volume separated by bars that closed higher (bullish) or lower (bearish) within each block.
• Trend Reversals: The reversal line feature highlights shifts in trading advantage where the volume sentiment of a block differs significantly from its neighbors.

Details

The script utilizes request.security_lower_tf to gain insights into intraday price movement that standard volume profiles might miss. The logic for distributing volume across blocks is as follows:

1. The difference between the high and low of each LTF bar is calculated.
2. The script determines the percentage of that LTF bar that falls within a specific price block.
3. The volume is then multiplied by this ratio and stored in the corresponding block.
4. Total volume, percentage of total volume, and price extremes are displayed at the base of the profile.

Credits:

1. ‘Time & volume point of control (TPOC & VPOC)’ by quantifytools
2. ‘Volume Profile’ by LuxAlgo
3. ‘Volume Profile and Volume Indicator by DGT’ by dgtrd

Settings

Volume Profile Basic

• Resolution of bars: Determines the lower timeframe used for granular calculations (e.g., 10S, 1m).
• Lookback length: The number of bars from the current price to include in the profile.
• Row Size: The number of horizontal price blocks (rows) to divide the range into.

Option

• Show the qty and qty_percent: Toggles labels for volume amount and percentage on each block.
• Show POC line: Displays a line at the price level with the highest volume.
• Show TPOC line: Highlights the block where price resided for the longest duration.
• Show Reversal line: Displays markers where volume sentiment shifts between adjacent blocks.
• Show up down Box: Splits the volume bars into bullish and bearish components.
• Text side: Adjusts the horizontal alignment of the text labels.

Style & Color

• Width (% of the box): Controls the horizontal scale of the volume histogram.
• Flip Histogram: Flips the profile to display from right to left.
• Color Groups: Independent color settings for the general area, POC, TPOC, Reversal lines, and Bullish/Bearish volume bars.

FAQ

How do I adjust the accuracy of the volume distribution? You can increase the accuracy by selecting a lower "Resolution of bars" in the settings, which allows the script to analyze price action at a more granular level.

What is the difference between POC and TPOC? POC (Point of Control) is based on the highest volume of transactions, whereas TPOC (Time Point of Control) is based on the duration of time price spent at a specific level, regardless of volume.

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.