Candle Volume Profile Marker

The Candle Volume Profile Marker indicator identifies and displays key volume profile levels—Point of Control (POC), Value Area High (VAH), and Value Area Low (VAL)—on an individual candle basis to highlight micro-level price acceptance and rejection zones.

Usage

The Usage section describes how the script can be used to analyze price action through the lens of volume distribution within specific time intervals. Traders can use this tool to identify precise support and resistance levels formed by high-volume nodes on every bar.

• Micro-Level Support/Resistance: Use the POC as a magnet for price or a pivot point. If price remains above the POC, the candle shows bullish acceptance; below suggests bearish control.
• Value Area Analysis: The VAH and VAL define the range where the majority of trading activity occurred. Breakouts from these zones can signal the start of a trend, while rejection at these levels suggests range-bound behavior.
• Visual Customization: Users can switch between "Current Candle Only" for a focused view or "Historical Lookback" to see how levels have evolved over recent bars. Line extension settings (Right Only, Left Only, or Both) help in projecting these levels into immediate price action without cluttering the chart.

Details

The script calculates the volume profile levels using different methodologies for the Point of Control (POC). The "Weighted" method uses a smart estimation based on the close's position relative to the high and low to simulate volume concentration. Other methods include "Close," "Middle" (High-Low midpoint), and "VWAP."

The Value Area is derived by applying a user-defined percentage (default 70%) to the candle range centered around the POC. This approximates the zone where the most significant volume was transacted. The script utilizes high-performance loop execution to render these levels dynamically on the chart as lines or markers (dots, crosses, etc.).

Settings

Display Options

• Show POC/VAH/VAL: Toggles the visibility of the Point of Control and Value Area boundaries.
• Show Current Candle Only: When enabled, only levels for the most recent candle are displayed.
• Number of Candles to Display: Sets the historical lookback for level rendering (1-50).
• Show Info Table: Displays a real-time data table with current level values.
• Highlight Current Candle: Extends dotted lines from the active candle's levels for better visual reference.
• Show Developing Levels: Displays real-time POC labels that update as the active candle forms.

Calculation

• Value Area Percentage: Defines the size of the value area relative to the candle range (50% to 90%).
• POC Calculation Method: Chooses the logic used to determine the POC (Weighted, Close, Middle, or VWAP).

Visuals

• Style (POC & VA): Sets the shape used for markers (Line, Dot, Cross, Triangle, Square, Diamond).
• Color/Width/Length: Controls the aesthetic properties and size of the indicators.
• Line Length Mode: Adjusts the horizontal span of the lines (Normal, Short, Ultra Short, Micro).
• Line Extension: Determines if lines extend to the right, left, or both sides of the candle.

FAQ

How do I interpret the Point of Control (POC) on a single candle? The POC represents the price level where the highest volume was likely concentrated. It acts as a micro-pivot; price staying above the POC indicates strength, while staying below indicates weakness within that specific timeframe.

What is the difference between the POC calculation methods? "Weighted" estimates volume distribution based on the closing price's position, "Middle" uses the mathematical center of the candle, and "VWAP" uses the volume-weighted average price. "Weighted" is generally preferred for a more accurate representation of volume concentration.

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