Auto-Anchored Fibonacci Volume Profile

The Auto-Anchored Fibonacci Volume Profile indicator automatically identifies significant price swings and overlays a volume profile onto the Fibonacci retracement levels to highlight confluence between market structure and liquidity.

Usage

The Usage section describes how the script can be used to identify high-probability reversal zones and market imbalances. By anchoring the Volume Profile to the exact coordinates of a detected Fibonacci swing, traders can verify the strength of theoretical support and resistance levels.

• Confluence Identification: Look for the Point of Control (POC), represented by a blue line. When the POC aligns with a key Fibonacci level, such as the 0.618 "Golden Pocket," it indicates that significant market participation occurred at that structural level, increasing its reliability.
• Imbalance Analysis: Look for "valleys" or Low Volume Nodes (LVN) in the profile. These represent areas where price moved quickly with little participation; price often traverses these zones rapidly until it reaches the next High Volume Node (HVN).
• Delta Interpretation: The profile displays dual-color bars (Teal and Red) to show the composition of volume. This allows users to see whether buyers or sellers were more aggressive at specific price bins within the Fibonacci retracement.

Details

The script utilizes a custom-built calculation engine that bypasses standard built-in functions to provide higher precision and flexibility.

• Smart-Fill Distribution: To prevent the "barcode" effect seen in standard volume tools during volatile moves, the script uses a custom loop to calculate the vertical overlap of every candle against the profile grid. Volume is mathematically divided and distributed across all bins touched by a candle's range.
• Custom Array Engine: The indicator initializes two separate floating-point arrays for buy and sell volume. It iterates through the swing duration and populates these arrays based on price action and candle polarity, allowing for a detailed breakdown of market delta.
• Garbage Collection System: To maintain performance and prevent visual artifacts, the script includes a memory management system. It tracks and clears previous drawing objects (boxes, lines, and labels) before rendering new data, ensuring the interface remains responsive during timeframe or symbol changes.

Settings

The settings are categorized to allow for granular control over the detection sensitivity and visual output.

• Lookback Length: Sets the number of bars the script analyzes to find the highest high and lowest low for the Fibonacci anchor points.
• Resolution (Row Count): Determines the granularity of the volume profile. Higher values create more rows for a smoother, more detailed distribution curve.
• Width (% of Swing): Adjusts the horizontal scaling of the volume profile bars relative to the duration of the detected trend.
• Extend Fib Lines: When enabled, projects the Fibonacci levels infinitely to the right of the chart.
• Show Fib Labels: Toggles the visibility of the price and level labels for the Fibonacci retracements.
• Colors: Customizable inputs for Buy Volume (Teal), Sell Volume (Red), and the Point of Control (POC) line.

FAQ

How do I interpret the Point of Control (POC) on this indicator? The POC is the price level within the selected Fibonacci swing that had the highest volume of trading activity. It acts as a significant "fair value" marker where the market has found the most agreement.

What makes the "Smart-Fill" algorithm different from standard Volume Profiles? Standard profiles often assign volume only to the closing price or a single bin. The Smart-Fill algorithm distributes a candle's volume across its entire high-low range, providing a more accurate representation of liquidity in volatile markets.

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