# Gaussian Volume Profile Rebuilds the volume profile as a smooth density curve by fitting a Sum of Gaussians with Levenberg-Marquardt optimization. Detected peaks are drawn as precise liquidity centers, and each node's width separates tight consensus zones from broad value areas. For volume traders who want cleaner levels than a jagged histogram provides. - Indicator in the LuxAlgo Library, by LuxAlgo, published Feb 15, 2026. - Access: free. - Concepts: [Volume Profile](https://www.luxalgo.com/library/concept/volume-profile/) (primary), [Kernel Density Estimation](https://www.luxalgo.com/library/concept/kernel-density-estimation/) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn1uv6002jvhsg8zh2kkuc - Page: https://www.luxalgo.com/library/indicator/gaussian-volume-profile/ The **Gaussian Volume Profile** replaces the familiar jagged histogram with a fitted model. Over a chosen lookback it organizes traded volume by price like any [volume profile](https://www.luxalgo.com/library/concept/volume-profile/), then fits a Sum of Gaussians to the distribution with Levenberg-Marquardt optimization. The output is a smooth volume density curve projected beside price, with every detected peak marked as a liquidity center. ## How to Trade the Gaussian Volume Profile? - **Dashed peak lines**: each local maximum of the fitted curve marks a liquidity center, candidate support and resistance, color-coded to its Gaussian component. - **Narrow, sharp peaks**: tightly concentrated agreement at one price, natural places to watch for rejections. - **Wide, shallow components**: volume spread across a range, broader value areas better suited to rotation than to precision entries. - **Clearing a dominant node**: supports a breakout read; pullbacks into prior high-density zones frame continuation entries. Peaks land at the fitted center of each cluster rather than on a bin midpoint, and minor histogram noise is smoothed away. It shares a goal with [kernel density estimation](https://www.luxalgo.com/library/concept/kernel-density-estimation/) (turning discrete data into a smooth density) but works by refining a limited set of Gaussian components. ## Gaussian Volume Profile Settings - **Lookback Window**: bars included in the distribution; larger windows capture structural value, smaller ones recent positioning. - **Number of Bins**: vertical resolution, more detail at more computational cost. - **Max Potential Peaks**: the maximum number of Gaussian components the model may fit. - **Max Iterations**: optimizer refinement cycles; more sharpen the fit but run slower. - **Initial Lambda**: the damping factor guiding early optimization steps. - **Histogram Resolution / Highlight Window Range / Highlight Detected Peaks / Auto Mode**: control projection length, lookback shading, peak lines, and curve coloring. ## Frequently Asked Questions ### How many peaks should I allow the model to fit? Trending charts usually resolve cleanly with fewer components, while rotational or consolidating markets can justify more nodes. Start conservative and add components only when obvious clusters go unmarked. ### How does it compare to a node-detection profile? The [Volume Profile with Node Detection](https://www.luxalgo.com/library/indicator/volume-profile-with-node-detection/) works from the classic binned histogram and flags its notable nodes. This tool instead fits a continuous model first and derives its levels from the fitted peaks. ### How do I access the Gaussian Volume Profile? The profile is free, no plan needed. Pull it onto your chart from this page and point it at any market with reliable volume data. You can also copy the source code from this page and run it anywhere Pine Script® runs. ## Related indicators - [Volume Profile (Maps)](https://www.luxalgo.com/library/indicator/volume-profile-maps/) (Volume Profile): markdown at https://www.luxalgo.com/library/indicator/volume-profile-maps.md - [Volume Profile Matrix](https://www.luxalgo.com/library/indicator/volume-profile-matrix/) (Volume Profile): markdown at https://www.luxalgo.com/library/indicator/volume-profile-matrix.md - [Volume Profile Regression Channel](https://www.luxalgo.com/library/indicator/volume-profile-regression-channel/) (Volume Profile): markdown at https://www.luxalgo.com/library/indicator/volume-profile-regression-channel.md - [Volume Profile with Node Detection](https://www.luxalgo.com/library/indicator/volume-profile-with-node-detection/) (Volume Profile): markdown at https://www.luxalgo.com/library/indicator/volume-profile-with-node-detection.md - [Anchored Clusters Volume Profile](https://www.luxalgo.com/library/indicator/anchored-clusters-volume-profile/) (Volume Profile): markdown at https://www.luxalgo.com/library/indicator/anchored-clusters-volume-profile.md - [Clusters Volume Profile](https://www.luxalgo.com/library/indicator/clusters-volume-profile/) (Volume Profile): markdown at https://www.luxalgo.com/library/indicator/clusters-volume-profile.md - [KDE Value Clouds](https://www.luxalgo.com/library/indicator/kde-value-clouds/) (Kernel Density Estimation): markdown at https://www.luxalgo.com/library/indicator/kde-value-clouds.md - [Swing Volume Profiles](https://www.luxalgo.com/library/indicator/swing-volume-profiles/) (Volume Profile): markdown at https://www.luxalgo.com/library/indicator/swing-volume-profiles.md --- Source: https://www.luxalgo.com/library/indicator/gaussian-volume-profile/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/