Poor man's volume clusters

The Poor man's volume clusters indicator generates volume-at-price visualizations directly from candlestick data to identify areas of high liquidity and market interest. This tool segments price action into blocks, providing a simplified volume profile that highlights the Volume Point of Control (VPOC) and distribution across specific price levels.

Usage

The Usage section describes how the script can be used to analyze market structure and volume distribution. By default, the indicator groups a specific number of bars into a "profile block" and calculates the volume distributed across 15 price rows within that block's high-low range.

• Identifying High Liquidity Zones: Users can look for price levels where the visual rows are longest, indicating that a significant portion of the block's volume was transacted at that price.
• Trend Support and Resistance: The Volume Point of Control (VPOC) often acts as a magnet for price or a significant support/resistance level.
• Custom Volume Analysis: Traders can use the custom volume source setting to analyze volume from a different symbol (e.g., using Futures volume while trading Spot) to gain deeper market insights.

Details

The script operates by partitioning the chart into discrete blocks based on the blockSize setting. For each block, it determines the total price range and divides it into 15 equal horizontal rows. Volume is allocated to these rows based on whether a candle's price range intersects with the row's boundaries.

Unlike traditional Volume Profiles that require tick-level data, this "Poor man's" version utilizes available bar volume, making it computationally efficient and accessible on various timeframes. The visual width of the rows is normalized using an Exponential Moving Average (EMA) of the highest row values, controlled by the filterSize setting, to ensure the clusters remain visually consistent across different market volatility regimes.

Settings

• Bars in profile block: Determines the number of candlesticks included in a single volume cluster calculation.
• Visual row width: Adjusts the maximum horizontal length of the volume bars for visual clarity.
• Show volume point of control: Toggles the visibility of the price level with the highest transacted volume within the block.
• Profile maximum high pass filter size in bars: Sets the EMA length used to normalize the visual width of the clusters, preventing extreme volume spikes from distorting the chart.
• Use custom volume source: Enables the use of an alternative ticker for volume data.
• Custom volume source symbol: Specifies the symbol to be used if the custom volume source option is active.

FAQ

How do I interpret the length of the bars? The length represents the relative amount of volume traded at that specific price level compared to other levels within the same block and historical averages.

Can I change the number of rows in each cluster? Currently, the script is optimized to use 15 rows per block to balance detail with performance.

How do I get access to this tool? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.