Air Pocket Profile

The Air Pocket Profile tool is a volume analysis indicator that identifies "air pockets"—price ranges where little trading has occurred—and highlights major high-volume nodes to project zones of support, resistance, and rapid price movement. Unlike standard profiles that focus only on where trading occurred, this script treats low-volume gaps as actionable information, helping traders anticipate where price might accelerate or stall.

Usage

The Usage section describes how the script can be used to interpret market structure and volume distribution.

• Air Pocket Trading: These zones represent low-resistance ranges. When price enters an air pocket, users can expect faster movements and fewer reaction points until the next volume shelf is reached.
• High Volume Nodes (HVN) & Anchors: These levels act as high-resistance areas. Use the Volume Anchor (the heaviest row) and HVN levels to identify where price is likely to stall, consolidate, or reverse.
• Volume Distribution Analysis: The profile balance indicates the share of volume above versus below the anchor, providing directional context. The "fresh volume" share helps determine how much of the current structure was built recently compared to older historical data.
• Anchor Migration: By tracking the "Anchor Shift," traders can see if the center of gravity for traded volume is migrating upward or downward, signaling a potential trend shift or continuation.

Details

The script utilizes a custom range-weighted distribution model. Instead of a close-based profile where each bar contributes to a single price row, this tool spreads volume across every price row a bar spans (from high to low). This volume is weighted by an impulse factor based on candle body size ($0.7 + 0.6 \times \text{body ratio}$).

Row Classification and Visual Objects:

• Rescaling: Rows are rescaled based on their volume relative to the mean. High-volume rows remain vivid, while low-volume rows fade out based on the contrast setting.
• Air Pockets: These are continuous runs of rows where volume falls below the defined threshold.
• HVNs: Local maxima of the profile are ranked by volume to identify significant shelves.
• Volume Anchor: The single heaviest row in the lookback period, displayed as a glow line.
• Transit Marks: The script identifies bars that moved quickly through air pockets, placing check marks to confirm low-resistance zones.

Settings

• Lookback (bars): The number of historical bars used to construct the volume profile.
• Resolution (rows): The vertical row count; higher values provide finer detail.
• Fresh window (bars): Defines how many recent bars are used to calculate and highlight "fresh" volume.
• Air pocket threshold: The fraction of peak volume below which a row is considered part of an air pocket.
• Min pocket size (rows): The minimum height required for an air pocket to be displayed on the chart.
• Node count: The number of High Volume Nodes (HVN) to display on the chart.
• Profile contrast: Controls how aggressively low-volume rows fade out relative to high-volume rows.
• Anchor shift window: The lookback period used to compare the current anchor position to a previous one to measure migration.
• Signal Toggles: Options to enable or disable acceptance/rejection marks, transit marks, and the anchor shift arrow.

FAQ

How do I interpret the "Fresh Volume" on the profile? Fresh volume is colored differently and represents trading activity within the most recent bars defined in the "Fresh window" setting. This allows you to distinguish between long-standing support/resistance levels and newly formed structure.

What is an Air Pocket Transit mark? A transit mark is a check mark that appears when a price bar moves through an identified air pocket. It confirms that the zone indeed provided little resistance, validating the "air pocket" for future price action.

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