Volume Profile Premium

The Volume Profile Premium indicator provides a high-resolution visualization of volume distribution across price levels to identify market areas of high interest and liquidity. It utilizes lower-timeframe data to calculate a more granular distribution of buy and sell activity, offering traders insights into potential support and resistance zones based on historical volume concentration.

Usage

The Usage section describes how the script can be used, particularly for identifying high-volume nodes (Value Areas) and low-volume nodes. Traders can use the Point of Control (POC)—the price level with the highest volume—as a significant horizontal reference point.

The indicator allows for two primary display modes:

• Buy/Sell: Splits each row of the profile into distinct buy and sell volume components, allowing for the visualization of delta at specific price levels.
• Total: Combines volume into a single profile to highlight the overall market activity regardless of direction.

Placement settings allow users to anchor the profile to either the left or right side of the chart, ensuring it does not interfere with price action analysis. The horizontal offset and width settings further customize the visual real estate the profile occupies.

Details

The script leverages the request.security_lower_tf function to pull data from a user-defined lower resolution. By analyzing price action at a smaller scale, it can more accurately assign volume to specific price "rows" within a larger candle.

The calculation process follows three stages:

1. Data Acquisition: Fetching lower timeframe bars within the specified lookback period.
2. Volume Accumulation: Calculating whether volume at a specific price point was associated with a bullish or bearish move based on the intra-bar close.
3. Discretization: Sorting the accumulated data into a fixed number of rows (bins) defined by the user to generate the final visual profile.

Users should be aware that requesting very low resolutions (e.g., 1 minute) over large lookback periods may lead to calculation timeouts due to the high volume of data processed.

Settings

Volume Profile Parameters

• Max Of Lookback Forward: Determines the maximum number of historical candles used to calculate the profile.
• Lower Resolution (Minute): Specifies the timeframe used for granular volume data collection.
• Display Volume Profile: Switches between "Buy/Sell" split bars and "Total" volume bars.
• Rows Of Volume Profile: Sets the vertical granularity by defining the number of price bins.
• Placement Of Volume Profile: Determines if the profile is anchored to the "Left" or "Right" of the chart.
• Width Of Volume Profile: Adjusts the maximum horizontal length of the volume bars.
• Horizontal Offset: Controls the spacing between the profile and the chart boundary or price.
• Enable Realtime Volume-Profile Mode: When enabled, updates the profile dynamically as new data arrives (not recommended for backtesting/replay).

Display Settings

• Lookback Region Color: Sets the color and transparency for the highlighted lookback area.
• Profile Colors: Individual color pickers for Buy volume, Sell volume, and Total volume bars.
• Difference Color: Defines colors for bullish and bearish deltas.

FAQ

How do I adjust the accuracy of the volume calculation? You can increase the accuracy by lowering the "Lower Resolution (Minute)" setting. This forces the script to analyze smaller time increments, though it requires more processing power.

Why is the indicator not displaying on my chart? Ensure that the "Lower Resolution" is a factor that can divide the current chart timeframe evenly. Additionally, check that the "Max Lookback" is not set to a value higher than the available bar history.

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