Volume Profile, Pivot Anchored by DGT

The Volume Profile, Pivot Anchored by DGT indicator identifies key trading activity zones by anchoring volume profiles to market pivot points. This tool provides deep insight into volume distribution between consecutive structural highs and lows, highlighting areas of high market participation, support, and resistance.

Usage

The Usage section describes how the script can be used to analyze market structure through volume distribution. By anchoring the calculation to pivot points, the indicator automatically adjusts its range based on significant price reversals.

Volume Profile Analysis

The script plots a horizontal histogram between identified pivot points. Users can identify high-volume nodes (areas of acceptance) and low-volume nodes (areas of rejection). The Profile Width % and Number of Rows settings allow for visual customization and price granularity.

Value Area and POC

The indicator calculates the Point of Control (POC), representing the price level with the highest traded volume. It also defines the Value Area (VA)—the range where a specified percentage (default 68%) of volume occurred.

• POC Extension: The POC can be projected forward until the current bar or until price interacts with it (cross/touch), highlighting "naked" POCs as potential magnets.
• VA Boundaries: Value Area High (VAH) and Value Area Low (VAL) act as dynamic boundaries of fair value.

Volume Weighted Colored Bars

The script includes a feature that recolors the chart bars based on volume relative to its Moving Average. This helps traders visually distinguish between high-conviction moves and low-volume exhaustion.

Details

The indicator uses a pivot-based logic to determine the start and end points of each volume profile segment. Unlike standard session-based profiles, this approach aligns the data with price action structure.

• Pivot Logic: High and Low pivots are determined by a user-defined "Left/Right Length." A higher length results in broader, more significant profile segments.
• Calculation: For every segment, the script buckets volume into horizontal price levels (rows). It then identifies the POC and calculates the Value Area by expanding from the POC until the volume threshold is reached.
• Bar Coloring: Bars are modified based on a Volume SMA. If a bar's volume exceeds the SMA multiplied by the "Bold" threshold, it signifies high intensity. If it falls below the "Light" threshold, it indicates low participation.

Settings

Pivot Points Volume Profile

• Pivot Points Left / Right Length: Sets the number of bars required to confirm a pivot high or low.
• Volume Profile (Common Interest): Toggles the visibility of the total volume histogram and its colors.
• Value Area Volume %: The percentage of total volume used to calculate the Value Area (default 68%).
• Point of Control (PoC): Enables the POC line and its color settings.
• Extend Point of Control (PoC): Options to extend the POC line until the last bar, until a price cross, or until a price touch.
• Value Area High/Low: Toggles the visibility of the VAH and VAL levels and labels.
• Level Labels: Chooses which labels to display (Pivot Points, Profile High/Low, or Value Area levels).
• Cumulative Volume: Displays the total volume traded within the pivot range on the label.
• Number of Rows: Determines the vertical resolution (granularity) of the volume profile.
• Placement: Positions the histogram on the left or right of the pivot range.

Volume Weighted Colored Bars

• Volume Weighted Colored Bars: Toggles the bar coloring feature.
• Volume Moving Average Length: The period used for the volume baseline.
• Bold Bars above Volume Average ×: Multiplier to trigger high-volume bar highlighting.
• Light Bars below Volume Average ×: Multiplier to trigger low-volume bar highlighting.

FAQ

How do I adjust the sensitivity of the pivot points? Increase the "Pivot Points Left / Right Length" setting to capture major market swings or decrease it for more frequent, short-term profiles.

What does a "naked" POC mean in this indicator? A naked POC is a Point of Control that has not been touched by price action since it was formed. You can visualize these by setting the "Extend Point of Control" to "Until Bar Touch."

How do I get access to the Volume Profile, Pivot Anchored by DGT? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.