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Market Structure Volume Distribution

By LuxAlgoApr 9, 2024

Market Structure Volume Distribution is an indicator on Vela, our next-generation charting platform, written in Pine Script®.

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The Market Structure Volume Distribution answers the question structure tools usually leave open: how much force stood behind the break? It pairs swing-based market structure detection with a volume profile and a grid: structure lines confirm in green for bullish breaks and red for bearish, while the profile sums the volume of each structure-break bar into the row of the level it broke, split into bullish-break (buy) and bearish-break (sell) volume.

How to Trade the Market Structure Volume Distribution?

  • Weigh breaks by participation: match each structure line to its grid row on the profile. A break through a heavily traded row carries more conviction than one through thin trade.
  • Grid rows as levels: the equally sized rows partition the analyzed range and serve as automatic support and resistance.
  • Buy vs sell split: in the default BUY&SELL VOLUME mode each row separates the volume of bullish breaks from that of bearish breaks at that level, showing which break direction carried more volume there.
  • Tune the horizon: a short swing-point period surfaces short-term structure; longer periods isolate the breaks swing traders care about.

Market Structure Volume Distribution Settings

  • Execute on all visible range (default false): calculate from every visible bar, overriding the fixed window.
  • Execute on the last N bars (default 500): the calculation window when visible-range mode is off; accepts 20–5000.
  • Pivot Length (default 2): bars needed to confirm a pivot. Larger values detect fewer, more significant breaks.
  • Profile Rows (default 10) / Profile Width (default 200): resolution and maximum width of the profile.
  • Profile Mode (default BUY&SELL VOLUME): combined totals or a buy/sell split; colors and dotted grid display are adjustable.

Frequently Asked Questions

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Also works on

TradingView
NinjaTrader
MetaTrader 4/5
Original indicatorBuilt in-house by LuxAlgo

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