Volume Profile + Pivot Levels

The Volume Profile + Pivot Levels indicator combines a rolling volume profile with price pivots to identify and surface the most significant support and resistance levels within a selected lookback window. By validating price structure against traded volume, it ensures that only high-participation levels are displayed, helping traders focus on market areas where liquidity and price action overlap.

Usage

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

• Market Bias: Use the color and direction of the Point of Control (PoC) to determine immediate net-flow bias. A teal/green tone indicates net positive delta, while a maroon/red tone indicates net negative delta.
• Level Validation: Prioritize the promoted pivot levels marked on the chart. These are pivots that have been filtered to ensure they align with significant volume clusters in the profile.
• Retest Tracking: Observe the forward-extending dotted rays. These levels represent active zones that have not yet been retested. Once price intersects the level, the line stops extending, indicating the level has been "filled" or tested.
• Sensitivity Adjustment: Users can tighten or loosen the "Filter %" to control how many pivot levels are promoted, allowing for more or less selectivity based on volume strength.

Details

The script operates by calculating a volume profile over a user-defined period, discretizing the price range into specific bins. Simultaneously, it detects raw pivot highs and lows. The unique logic of this tool cross-checks every detected pivot against the volume profile:

1. Volume Filtering: A pivot is only "promoted" to a chart level if it falls within a price bin that meets a minimum volume threshold (expressed as a percentage of the PoC volume).
2. Delta Calculation: It tracks the net difference between buying and selling volume to color the profile, providing an immediate visual cue of market dominance.
3. Dynamic Rendering: To maintain chart performance, the profile is rendered as a smooth polyline rather than traditional boxes.
4. Self-Retiring Levels: To prevent chart clutter, the script monitors price interaction with promoted levels and stops extending them once a retest occurs.

Settings

Volume Profile

• Period: The lookback window (up to 500 bars) used to calculate the volume profile.
• Volume Profile Resolution: The number of bins used to divide the price range; higher values provide more granular volume data.
• PoC: Toggles the visibility of the Point of Control line and its associated volume label.

Pivots

• Display: Toggles the visibility of the volume-validated pivot levels.
• Length: The number of bars required on each side of a price point to identify a raw pivot.
• Filter % 0–100: The minimum volume strength required for a pivot to be promoted to a level, calculated as a percentage of the current PoC volume.

FAQ

How do I interpret the level labels? The labels display two pieces of data: the absolute volume at that specific price bin and the percentage of volume relative to the Point of Control. For highs, the order is flipped compared to lows for easier reading.

Why do some pivot levels stop extending? The script uses "self-stopping" logic. When the high/low of a bar straddles the level's price, the script considers the level tested and stops extending the ray to keep the chart clean.

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.