KDE Value Clouds

KDE Value Clouds maps where the market has genuinely accepted price, using kernel density estimation instead of the binned rows of a conventional profile. Every observation in the lookback contributes a small Gaussian curve; their sum is a continuous density of price, and regions where the density is above half of its peak are painted onto the chart as gradient value clouds, with a smooth profile and statistical point of control drawn at the side.

How to Trade the KDE Value Clouds?

• Bright, high-density clouds: balance areas where both sides agreed on price. Expect rotation inside them and retracements to gravitate back toward them.
• Low-density gaps: inefficient stretches crossed in a hurry; price tends to move fast through them and frequently revisits them before new balance forms.
• KDE POC: the single highest-density level: support in bullish conditions, resistance in bearish ones, and a magnet while the market ranges.
• Cloud boundaries: rejection at an edge argues for rotation; acceptance beyond a high-density cloud can open a trend phase.

Mean-reversion entries in the gaps can target the nearest cloud or the POC; breakout entries wait for acceptance before leaving one. The clouds act as a statistically derived value area, and Silverman's rule sets the bandwidth automatically so smoothing adapts to the volatility regime.

KDE Value Clouds Settings

• Lookback Period: bars included in the density. Higher values build macro value zones, lower values track short-term rotation.
• Bandwidth Multiplier: scales the automatic smoothing; higher spreads broader clouds, lower sharpens detail.
• Precision (Steps): vertical resolution; more steps add detail at extra computational cost.
• Profile Width (%): horizontal footprint of the side profile.
• Show Value Cloud on Chart: toggles the on-chart density overlay.

Frequently Asked Questions

How do the clouds differ from a volume profile?

Does the KDE POC repaint?

How do I access KDE Value Clouds?