Enhanced Volume Profile

The Enhanced Volume Profile indicator plots a volume profile on the chart to analyze volume distribution at various price levels, helping traders identify high-activity nodes and potential support or resistance zones.

Usage

The Usage section describes how the script can be used to identify key liquidity zones and market interest.

• Visible Chart Range: By default, the script calculates the profile based on the bars currently visible on your screen. As you scroll or zoom, the profile dynamically updates to reflect the distribution of the selected view.
• Fixed Lookback: For consistent analysis regardless of zooming, you can disable the visible range and set a specific number of bars (e.g., the last 200 bars).
• Support & Resistance Identification: Use the Point of Control (PoC) as a primary magnet or pivot point for price, while the Value Area (VA) boundaries can act as dynamic support and resistance.
• Data Granularity: Use the Custom Resolution setting to force a specific lower timeframe (like 1-minute data) for the volume calculation, providing more precise results on higher timeframe charts.

Details

The script utilizes request.security_lower_tf to gather granular volume data from lower timeframes, ensuring the profile is more accurate than simple bar-based calculations.

• Auto-Resolution Logic: The indicator automatically scales the data source based on your current chart. For example, on a 1-hour chart, it uses 5-minute data; on a Daily chart, it uses 1-hour data.
• Optimization: To maintain performance, the script caps the total number of processed lower timeframe bars at 6000. If the selected lookback and resolution exceed this, the script automatically trims the lookback to ensure efficient execution.
• Value Area Calculation: The Value Area is determined by starting at the PoC and expanding outwards to encompass the specified percentage (default 68%) of the total volume.

Settings

Lookback Settings

• Use Visible Chart Range: When enabled, the profile is calculated based only on what is seen on the chart.
• Fixed Lookback Bars: Determines the number of bars used for calculation when the visible range option is disabled.

Resolution Settings

• Enable Custom Resolution: Allows the user to manually select the timeframe used for volume data.
• Custom Resolution: The specific timeframe used for data gathering if the override is enabled.

Volume Profile Appearance

• Profile Resolution: Adjusts the number of price bins (granularity) in the profile.
• Profile Width Scale: Controls how far the profile extends horizontally across the chart.
• Right Offset: Sets the distance between the profile and the most recent price bar.
• Profile Fill Color: Sets the color and transparency of the volume histogram.

Point of Control (PoC) Settings

• Show Point of Control: Toggles the visibility of the PoC line.
• PoC Line Thickness/Color: Customizes the visual style of the highest volume level.

Value Area Settings

• Show Value Area: Toggles the visibility of the Value Area High and Low lines.
• Value Area Coverage: Sets the percentage of total volume to be included in the Value Area.
• Value Area Line Color/Thickness: Customizes the visual style of the VA boundary lines.

FAQ

How do I adjust the accuracy of the profile? You can increase the "Profile Resolution" for finer price detail or enable "Custom Resolution" to use lower timeframe data for more precise volume distribution.

Why does the profile change when I zoom out? If "Use Visible Chart Range" is enabled, the indicator recalculates based on the new set of bars visible in the window. Disable this setting to keep the profile fixed to a specific number of bars.

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