Volume Footprint POC for Every Candle

The Volume Footprint POC for Every Candle indicator identifies and plots the Point of Control (POC) for every individual bar, helping traders pinpoint the exact price level where the highest volume of trading activity occurred.

Usage

The Usage section describes how the script can be used to interpret market dynamics through volume distribution.

• Identifying Key Price Levels: The POC represents the price with the highest traded volume within a candle. These levels often act as intraday support or resistance. When POCs from multiple candles align horizontally, it indicates a high-volume node or a significant zone of market interest.
• Gauging Market Sentiment: By observing the progression of POC levels, traders can determine the dominant side of the market. A rising sequence of POCs generally suggests bullish sentiment, while a falling sequence suggests bearish pressure.
• Trend and Reversal Identification: Consistent shifts in POC levels can confirm a trend's strength. Conversely, if price moves significantly away from a POC or if the POC shifts abruptly against the prevailing trend, it may signal a potential reversal or exhaustion.
• Entry and Exit Points: Intraday and scalp traders can use the POC as a reference for entries. For example, buying near the POC during a confirmed uptrend or selling near it during a downtrend allows for tighter risk management.

Details

This tool functions by dividing each candle's price range into a specific number of levels. It then calculates the volume distribution across these segments to find the "Point of Control"—the level with the maximum volume. Unlike traditional Volume Profiles that look at fixed time sessions, this script provides a granular, candle-by-candle view of volume concentration, making it ideal for footprint-style analysis.

Settings

• Number of Price Levels: (Default: 100) Determines the granularity of the volume distribution calculation within each candle. Higher values provide more precise POC locations but require more processing.
• Range Multiplier: (Default: 0.02) Used as a factor in the underlying calculation to define the scope of price interaction.

FAQ

What does the blue line represent? The blue line represents the Point of Control (POC) for the current candle, which is the specific price level where the most volume was traded.

Can I set alerts for when price hits the POC? Yes, the script includes built-in alert conditions for when the price crosses over or under the POC level.

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