Wave Consolidation

Wave Consolidation turns raw swings into a market-profile view: whenever a move establishes a higher-high or lower-low, the indicator runs a market profile over that move (a volume profile when Volume-Based Calculations is on) and builds a zone that behaves like a compact trading range, anchored on the profile's point of control. Zone width expands from the POC until profile rows fall below the profile's average, and overlapping zones merge into one so range-bound stretches stay readable instead of piling up.

How to Trade the Wave Consolidation?

• Rejection: a swift retreat from a zone suggests price found the area over- or under-valued, raw material for reversal setups.
• Breakthrough: acceptance through a zone can start fresh momentum; in strong trends, zones left by minor swings become natural profit-taking targets.
• Consolidation: price holding inside a zone signals balance, opening range plays between its edges.

Each zone marks historical interaction, so retests treat them as support and resistance zones. When price mitigates a zone by crossing it against its bias, the zone collapses to a single dotted line at the edge price closed beyond and remains until the next higher-high or lower-low swing builds a zone, a last look at the level before deletion.

Wave Consolidation Settings

• Display Structure: toggles visibility of the swing structure behind the zones.
• Structure Length: the length used to identify swings; higher values favor larger, slower structures.
• Volume-Based Calculations: switches the underlying profile to a volume-oriented calculation.
• Display Count: how many bullish and bearish zones stay on the chart.
• Multiplier (default 0): places the threshold that sets zone edges this many standard deviations above the profile's average. Raise it for tighter zones.
• Display Average Lines: shows or hides each zone's mid-line.

Frequently Asked Questions

Are these the same as volume profile value areas?

How does it differ from a range detection tool?

How can I start using Wave Consolidation?