Bar Magnified Volume Profile/Fixed Range

The Bar Magnified Volume Profile/Fixed Range tool provides a highly accurate volume profile by analyzing lower timeframe data to determine the specific price levels where trading activity occurred within each bar. By utilizing sub-bar data, it offers a more granular representation of volume distribution compared to standard profiles that treat each bar as a single data point.

Usage

The Bar Magnified Volume Profile/Fixed Range can be used to identify significant areas of interest, such as high-volume nodes and low-volume nodes. Traders often use these levels to:

• Identify Key Support and Resistance: High volume areas frequently act as magnets or turning points for price action.
• Determine Exit and Entry Points: Setting targets at high volume nodes or placing stops beyond low volume areas.
• Assess Market Balance: Comparing the distribution of volume helps distinguish between balanced (ranging) and imbalanced (trending) market conditions.
• Trend Strength: Analyzing how volume shifts as price moves can indicate the sustainability of a current trend.

The tool automatically adjusts the lower timeframe (LTF) used for calculations based on your current chart, typically selecting a timeframe approximately 16 times lower to maintain precision.

Details

This script employs a quadratic time complexity algorithm to parse lower timeframe bars and attribute volume to specific price "grids" or levels. It calculates the percentage of a candle residing within a specific price grid and attributes that same percentage of the candle's volume to that grid. For instance, if 60% of an LTF candle is within a specific grid, 60% of that candle's volume is added to that level's total. This method ensures that the visual profile is a mathematically accurate representation of intraday or intra-bar activity.

Settings

Main Configuration

• Lookback Period: Defines the number of bars the script scans to find the absolute high and low used to generate the price range for the profile.
• Number Of Levels: Sets the vertical resolution of the volume profile. This is capped at 100 to ensure performance stability.
• Profile Length: Controls the horizontal width of the volume bars. This is purely visual and does not change the underlying data.
• Profile Offset: Shifts the entire profile display left or right on the chart for better visibility.

Cosmetic Settings

• High Volume: Customizes the color used for price levels with high trading activity.
• Low Volume: Customizes the color used for price levels with low trading activity.
• Above Point Of Interest: The color of the POI line when price is trading above the Point of Control.
• Below Point Of Interest: The color of the POI line when price is trading below the Point of Control.

FAQ

How do I interpret the Point of Control (POC)? The POC is the price level with the highest amount of volume within the specified lookback period. It often serves as a significant level where the most trading activity occurred.

Why is the level count limited to 100? The limit is in place because the script uses complex sub-bar calculations. Capping the levels ensures the script remains responsive and does not hit execution time limits on TradingView.

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