Volume Profile Fixed Range Support and Resistance Levels

The Volume Profile Fixed Range Support and Resistance Levels indicator identifies key price levels of high trading interest by plotting multiple volume profile instances across varying look-back periods. By highlighting the Point of Control (POC) and Value Area (VA) boundaries for each range, the tool provides objective support and resistance levels based on historical volume distribution.

Usage

The Usage section describes how the script can be used to identify market structure and potential reversal zones. The indicator simultaneously calculates five different volume profiles based on user-defined bar counts.

• Support and Resistance Identification: The upper and lower boundaries of the Value Areas (VA) act as horizontal support and resistance levels. When the "Show VA Start/End Lines" option is enabled, these boundaries are projected across the chart.
• Point of Control (POC): The POC represents the price level with the highest traded volume for a specific period. It is displayed as a dashed horizontal line and serves as a significant magnet or pivot point for price action.
• Multi-Timeframe Analysis: By default, the script tracks five different periods (7, 30, 60, 180, and 365 bars). This allows users to see how short-term volume nodes interact with long-term high-volume areas.
• Visual Customization: Users can toggle "Boxes" and "Labels" in the style settings to remove the histogram and focus purely on the horizontal support and resistance lines.

Details

The script is a multi-instance implementation of the Fixed Range Volume Profile concept. It divides the price range (highest high to lowest low) of a specified look-back period into a defined number of "rows" (Row Size).

For every bar within the range, the script calculates the volume distribution by analyzing the relationship between the bar's open, high, low, and close. Volume is assigned to specific price rows based on the "body" and "wicks" of each candle. Once the total volume per row is aggregated:

1. POC (Point of Control): The row with the highest total volume is identified.
2. VA (Value Area): The script expands from the POC to include rows until a specified percentage (default 70%) of the total volume is accounted for.
3. Visualization: The script uses box drawings to create the histogram and line drawings for the VA levels and POC.

Settings

VPFR 1 - 5 Groups

Each of the five volume profile instances contains the following settings:

• Number of Bars: The look-back period (in bars) used to calculate the volume profile.
• Row Size: Determines the number of horizontal rows used to partition the price range. Higher values provide more granularity.
• Value Area Volume %: The percentage of total volume used to calculate the Value Area (default is 70%).
• POC Color / Width: Customizes the visual appearance of the Point of Control line.
• Value Area Up/Down Color: Sets the colors for the volume bars within the Value Area.
• UP/Down Volume Color: Sets the colors for the volume bars outside the Value Area.
• Show POC Label: Toggles the visibility of the price label for the POC.
• Show VA Start/End Lines: Toggles the horizontal lines marking the top and bottom of the Value Area.
• VA Start/End Line Color: Customizes the color of the horizontal support and resistance lines.

FAQ

How do I use this purely as a Support and Resistance tool without the histogram? You can disable the "Boxes" and "Labels" options within the indicator's "Style" tab to hide the volume bars and focus exclusively on the horizontal lines.

Why are there five different groups in the settings? The five groups allow you to overlay five different look-back periods (e.g., weekly, monthly, yearly) at the same time to see where high-volume levels overlap.

How do I get access to the Volume Profile Fixed Range Support and Resistance Levels? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.