Range Sentiment Profile

The Range Sentiment Profile indicator is an advanced trading tool inspired by the volume profile concept, designed to highlight bullish and bearish price variations within equidistant zones of the recent price range. This indicator aids traders in determining the sentiment across different price areas by extending lines over the entire range to spotlight the most bullish or bearish zones.

Customizing the Indicator Settings

• Length: This parameter defines the number of recent bars used to calculate the indicator, allowing traders to tailor the range of data analyzed.
• Rows: Adjusts the division of the price range into specific price areas, impacting the granularity of the sentiment analysis.
• Use Intrabar: Enable this option to incorporate intrabar data for a more nuanced sentiment analysis.
• Timeframe: Define the timeframe for intrabar data to refine the sentiment profile calculation.

How to Use the Range Sentiment Profile Indicator?

Traders can leverage this tool to swiftly identify whether certain price areas exhibit stronger bullish or bearish tendencies. The indicator estimates cumulative close-to-open price variations within predefined profile areas. A blue background suggests bullish dominance, whereas an orange background signals bearish tendencies within each zone.

By simply observing the bullish and bearish maxima, users can pinpoint zones with significant sentiment trends. Areas without a length in their profile bins might indicate alternating price variations or predominant trends with noteworthy opposing movements.

Such areas may also act as support or resistance levels, hinting at potential price reversal upon entry.

For enhanced precision, activating the intrabar data option modifies the profile calculations. Consult the detailed explanation in the following section.

Understanding the Detailed Calculations

The construction of the Range Sentiment Profile mimics the volume profile method. Initially, the calculation range is established by identifying maximum and minimum values over the recent bars defined by the Length setting.

The range is sectioned into equidistant zones per the Rows setting. The tool evaluates each price area to accumulate the close-to-open differences,
denoted as d = close - open. Each area's bin length is computed using the formula:

length = Width / 100 * Area / Max

Here, Area represents the summed d values within the zone, and Max signifies the peak absolute d value spanning all areas.

The percentage displayed on each bin reflects the relative strength of d within a zone against the total range sum.

Intrabar Data Calculation

Engaging the intrabar data feature recalibrates the Range Sentiment Profile's calculations. Here, close-to-open differences are tallied strictly if the intrabar candle within the chosen timeframe inhabits the specified area.

While this method enhances result precision, it may require increased computation resources.

FAQ

How can I access the Range Sentiment Profile indicator?

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

Why should I use intrabar data in my analysis?

Intrabar data provides a finer look into price movements, offering more precise insights at the cost of increased calculation time.

What do the colors of the profile bins indicate?

The color schematics, blue and orange, visually indicate areas of bullish and bearish sentiment respectively, aiding quick decision-making in trading strategies.