Zig-Zag Volume Profile (Bull vs. Bear)

The Zig-Zag Volume Profile [Kioseff Trading] indicator generates specialized volume profiles anchored to zig-zag trends to visualize the distribution of buying and selling pressure across specific price levels. By utilizing polyline technology, it provides a high-resolution view of volume delta and price action, allowing traders to identify key support and resistance zones based on historical trend volume.

Usage

The Usage section describes how the script can be used to interpret trend-based volume data. The indicator automatically calculates volume profiles for every leg of a zig-zag, offering a granular look at market participation within both minor and major price swings.

Volume Profile Interpretation

The tool distinguishes between buying and selling volume within a single profile. Green segments represent bull volume, while red segments represent bear volume. This helps traders identify if a price level was dominated by aggressive buying or selling during a specific trend.

Delta and POC Analysis

Users can enable Volume Delta to see the net difference between bull and bear volume at specific price blocks. Additionally, the script identifies the Point of Control (POC) and Value Area (VA) for each trend. Traders can choose to view a standard aggregate POC or separate POCs for bull and bear profiles to pinpoint more precise institutional activity.

Stylistic and Placement Options

The indicator offers three main plotting styles:

• Middle: Profiles are centered on the trend.
• Same Side: Both bull and bear profiles are plotted on the same side for a traditional overlapping look.
• Opposing Side: Bull profiles are drawn on the left and bear profiles on the right to clearly distinguish the two.

Details

The script leverages the polyline feature to handle up to 9,999 profile rows per trend, significantly reducing data aggregation and increasing price precision compared to standard box-based profiles. It calculates volume distribution by mapping historical bar data (High, Low, and Volume) to specific price bins within the zig-zag leg’s range.

The zig-zag logic is powered by the ZigZagLib, allowing for highly configurable reversal thresholds based on percentage or absolute price change. The inclusion of the MathOperator library by RicardoSantos ensures efficient data handling for the matrix-based calculations required for multi-trend profiling.

Settings

Profile Settings

• Profile Rows: Sets the number of horizontal price levels (up to 9,998) for volume calculation.
• Scaling Factor: Adjusts the horizontal width of the profiles.
• VP Plot Type: Choose between "Middle", "Same Side", or "Opposing Side" for profile placement.
• Curved Profiles: Toggles smooth curves for the profile edges instead of jagged lines.
• Profile Fill/Line Transparency: Controls the visibility and opacity of the volume bars.

Delta Settings

• Show Delta: Displays the net volume delta over the profile.
• Delta Rows: Determines the number of price blocks used to aggregate delta values.

POC & Value Area Settings

• Show POC/Value Area: Toggles the visibility of the Point of Control and Value Area lines.
• POC Type: Choose between a single "Regular POC" or separate "Bull & Bear POCs".
• Delete Violated POCs/VAs: Automatically removes historical levels once price has traded through them.
• Value Area %: Defines the percentage of total volume to include in the Value Area (typically 70%).

Zig Zag Settings

• Price deviation for reversals (%): The minimum price change required to start a new zig-zag trend.
• Pivot legs: The number of bars required to confirm a high or low pivot.

FAQ

How do I identify the strongest support level using this tool? The Point of Control (POC) line within a bull profile (green) often indicates where the highest volume of buying occurred, serving as a significant historical support level for future price tests.

Can I use this for scalping on lower timeframes? Yes, the indicator is robust enough to calculate profiles on very short timeframes (e.g., 30-second or 1-minute) by adjusting the Zig-Zag deviation settings to capture smaller price swings.

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