Volume Profile + VAH, VAL, and POC

The Volume Profile + VAH, VAL, and POC indicator provides a horizontal histogram of volume by price, featuring a buy/sell volume split and automated Value Area calculations to help traders identify key liquidity zones and fair value.

Usage

The Usage section focuses on identifying high-volume areas where price is likely to react. The script approximates the visible range based on a user-defined lookback window and renders a volume profile to the right of the price action.

• Buy/Sell Split: Unlike standard volume profiles, this tool divides each price bin into buy and sell volume. This allows users to see which price levels were aggressively defended by buyers versus sellers.
• Value Area (VAH/VAL): The script automatically calculates the Value Area—the price range where a specific percentage of total volume (default 70%) occurred. This area is bounded by Value Area High (VAH) and Value Area Low (VAL) lines.
• Point of Control (POC): The indicator highlights the POC, which is the price level with the highest total volume within the lookback period, often serving as a significant support or resistance level.
• Visual Themes: Users can toggle "Stealth Mode" for a grayscale palette that reduces visual clutter, or choose from various color themes to match their chart style.

Details

The indicator constructs the profile by dividing the price range into a set number of vertical bins. It utilizes two primary methods for volume allocation and delta estimation:

• Volume Allocation: The "Distribute Across Hi-Lo" setting provides higher accuracy by spreading a bar's volume across all price bins it overlaps, rather than assigning it to a single price point.
• Buy/Sell Estimation: Since Pine Script cannot access raw bid/ask data, the script uses the "Body Proportional" method to estimate delta. This calculates the relative size of the candle body to determine the split between buy and sell volume.
• Value Area Calculation: The script uses a classic expansion method, starting from the POC and expanding outward to the neighboring bin with the higher volume until the target volume percentage is reached.

Settings

User Inputs

• Theme: Sets the visual color palette (Standard, Stealth, or specific colors).
• Price Bins: Controls the vertical resolution of the profile. Higher values provide more detail but require more processing.
• Lookback (Bars): Determines how many bars back the script analyzes to build the profile.

Layout & Style

• Profile Position: Determines if the profile is placed to the right of the price or inside the chart area.
• Profile Width (bars): Adjusts the horizontal length of the volume bars.

Markers & Lines

• Show POC/VAH/VAL: Toggles the visibility of the Point of Control and Value Area lines.
• Extend Options: Allows the POC, VAH, and VAL lines to be extended to the left, right, or both directions.

FAQ

How do I adjust the accuracy of the volume distribution? Enable "Distribute Across Hi-Lo" in the script's internal logic and use the "Body Proportional" split method for a more realistic representation of price defense.

Why does the profile look different when I scroll? Because Pine Script cannot detect the current zoom level, the indicator uses a fixed "Lookback (Bars)" setting. You can adjust this input to match your desired timeframe or visible range.

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