FVG Volume Profile

The FVG Volume Profile indicator identifies Fair Value Gaps (FVGs) and overlays a detailed volume profile within each gap using data from lower timeframes to reveal the internal microstructure of price imbalances.

Usage

This tool is designed to help traders identify active imbalance zones with embedded volume context. By analyzing the volume distribution within an FVG, users can gain insights into where the most significant activity occurred during the price jump.

• Identifying Imbalances: Use the automatically plotted bullish (green) and bearish (red) boxes to locate price gaps where inefficiency exists.
• Analyzing the PoC: The Point of Control (PoC) line represents the price level with the highest volume inside the gap. A PoC positioned near the top or bottom of a gap can indicate potential absorption or reversal zones.
• Precision Entries: Combine price action with the PoC level to identify precise entry or exit points within the FVG.
• Auto-Cleaning: The script automatically removes FVG boxes and profiles once the price fully closes the gap, ensuring the chart remains focused on active zones.

Details

The script utilizes a 3-bar structure to detect gaps. To ensure only meaningful imbalances are shown, it applies a standard deviation filter to the gap size.

The volume profiling is achieved by pulling granular data from a lower timeframe. In "Auto" mode, the script selects a resolution approximately 10 times lower than the current chart timeframe. This data is then divided into vertical "bins," with the width of each bin representing its volume relative to the maximum volume found within that specific FVG.

Settings

Volume DATA

• Auto: When enabled, the indicator automatically selects a timeframe 10x lower than the current chart for volume analysis.
• Timeframe Selection: If Auto is disabled, this allows the manual selection of the lower timeframe used for granular volume data.

FVG Volume Profile

• Display: Toggles the visibility of the volume profile bins. If disabled, only the FVG box and PoC remain.
• Resolution: Determines the number of vertical bins used to construct the volume profile. Higher values provide finer detail.
• Filter Gaps: A sensitivity setting used to filter out smaller, less significant gaps based on standard deviation.

Colors

• Bullish Color: Sets the color for bullish Fair Value Gaps and their associated profiles.
• Bearish Color: Sets the color for bearish Fair Value Gaps and their associated profiles.

FAQ

How do I access the FVG Volume Profile?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Why do I see a warning label on my chart?

The warning appears if the manual timeframe selected is not lower than the current chart timeframe. Volume profiling requires lower timeframe data to calculate distribution within a single candle or gap.

What does the number on the PoC line represent?

The label on the PoC line displays the absolute volume value of the highest volume bin within that specific Fair Value Gap.