PremK | PUT & CALL Volume Profile Levels

The PremK | PUT & CALL Volume Profile Levels indicator provides a specialized dual-profile analysis that separates price-volume data into "PUT" and "CALL" histograms to identify institutional support and resistance zones. It aims to visualize market depth and volume concentration using two distinct lookback periods to highlight long-term stability versus short-term bullish momentum.

Usage

The Usage section describes how the script can be used to identify key liquidity levels. The indicator calculates two separate Volume Profiles based on user-defined lookback periods (defaulting to 150 bars for PUT and 70 bars for CALL).

• Support and Resistance Identification: The "PUT" profile (colored red by default) represents deeper, longer-term support zones, while the "CALL" profile (colored green) represents shorter-term resistance and bullish targets.
• Value Area Trading: Traders can use the Value Area High (VAH) and Value Area Low (VAL) of both profiles to find entry or exit points. Price staying within the Value Area suggests consolidation, while a breakout above the CALL VAH or below the PUT VAL indicates trending behavior.
• Trend Confirmation: The indicator includes two EMAs (defaulting to 5 and 16 lengths). When the price is above these EMAs and the CALL profile is building higher, it confirms a bullish trend. Conversely, price below the EMAs and the PUT profile suggests bearish dominance.

Details

The script executes a custom volume profile calculation by dividing the price range of the lookback periods into a specific number of "rows." It distributes the volume of each bar across these rows based on price overlap.

• Dual Lookback Logic: Unlike standard volume profiles, this tool uses two different lookback windows. This allows the user to see "PUT" levels (based on a larger sample of data) and "CALL" levels (based on more recent data) simultaneously on the same chart.
• Value Area Calculation: The script determines the Point of Control (POC) as the row with the highest volume. It then expands from the POC to include the specified percentage (default 99%) of total volume to define the VAH and VAL.
• Strike Price Integration: The tool allows users to input specific strike prices and expiry dates for the NIFTY index, fetching external daily close data to plot reference lines (ph, pl, pc, and CPC).

Settings

• General/Options Details: Sets the lookback for previous days and allows for NIFTY-specific strike price and expiry configuration.
• EMA Settings: Controls the lengths and visibility of the two trend-following Exponential Moving Averages.
• Volume Profile: Adjusts the number of rows (granularity) and the visual width of the histograms on the chart.
• PUT/CALL Levels: Independent lookback, Value Area percentage, and color settings for both the PUT and CALL profiles.
• Strike Settings: Configures how strike price levels are displayed, including the step (point interval) and the mode (Range vs. Exact).
• Volume Highlight: Settings to color candles based on whether their volume exceeds a multiplier of a moving average, with optional Delta influence labels.

FAQ

How do I interpret the dual profiles? The PUT profile typically tracks longer-term institutional floors, while the CALL profile tracks more immediate overhead resistance and momentum targets.

What does the CPC line represent? The CPC (Call-Put Combined) line is the average of the previous day's close for the specified Call and Put options contracts.

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.