Volume Profile with Node Detection
By LuxAlgoApr 25, 2024
Volume Profile with Node Detection charts the volume distribution by price over a lookback window, then finds its significant nodes automatically. A peak node is a level whose volume exceeds the N rows on either side of it; a trough is the mirror case, surrounded by heavier rows. Peaks and their neighbors group into clusters that typically mark consolidation (concentrated, two-sided business), while troughs expose prices the market showed little interest in holding.
How to Trade the Volume Profile with Node Detection?
- Peak nodes and clusters: heavy-acceptance zones where price tends to stall or rotate, reference points for entries, exits, and anticipating reversals or breakdowns.
- Trough nodes: thin levels with waning interest; price is more likely to transit them quickly than to base there.
- Highest and lowest volume nodes: the profile's extremes. The top nodes sit around the point of control as maximum acceptance, while the lowest flag outright rejection.
The underlying profile bins traded volume into price buckets across the window, so every detected node is grounded in the same histogram traders already know how to read.
Volume Profile with Node Detection Settings
- Volume Peaks: shows detected peaks as "Peaks" or as "Clusters".
- Node Detection Percent %: the percentage threshold used for peak calculation. Raise it to keep only dominant nodes, lower it to catch more.
- Volume Troughs: shows troughs as "Troughs" or "Clusters".
- Highest & Lowest Volume Nodes: how many of each extreme stay visible.
- Profile Lookback Length & Width: the window measured and the space the profile occupies.
- Display options: classical or gradient profile style, control points and area values, placement, and background colors.
Frequently Asked Questions
Free on Vela
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- Up to 500 strategy alerts, with webhook automation
- Up to 10× the chart history of Free
- Orderflow lookback up to full history
- Up to 100,000 monthly credits for Quant to customize it
- Futures data alongside crypto, stocks, forex and commodities
Also works on
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