Volume Profile Lite [JOAT]

Volume Profile Lite — Simplified Volume-at-Price Analysis

Volume Profile Lite creates a histogram showing volume distribution across price levels using a proprietary lightweight calculation method. It identifies the Point of Control (POC), Value Area High, and Value Area Low—key concepts from auction market theory—in an optimized, easy-to-read format that won't slow down your charts.

Why This Script is Protected

This script is published as closed-source to protect the proprietary volume distribution algorithm and the optimized Value Area calculation methodology from unauthorized republishing. The specific implementation of volume allocation across price rows, the buy/sell volume separation logic, and the efficient POC detection system represents original work that provides a unique lightweight alternative to standard volume profile implementations.

What Makes This Indicator Unique

Unlike heavy volume profile indicators that can slow down charts, Volume Profile Lite:

• Uses an optimized algorithm designed for performance
  
• Separates buying and selling volume for additional insight
  
• Provides clean visual presentation without chart clutter
  
• Includes extending reference lines for key levels
  
• Features a dashboard with price position relative to POC
  

What This Indicator Does

• Distributes volume across price rows to create a visual profile histogram
  
• Identifies the Point of Control (highest volume price level)
  
• Calculates Value Area (where specified percentage of volume traded)
  
• Separates buying and selling volume for each price level
  
• Extends key levels as reference lines on the chart
  
• Highlights the POC row with a distinct border
  

Core Methodology

The indicator uses a proprietary approach to volume-at-price analysis:

• Price Row Division — The lookback range is divided into configurable price rows (default: 24 rows)
  
  
• Volume Distribution — Each bar's volume is allocated to the price rows it touches. If a bar spans multiple rows, volume is distributed proportionally.
  
  
• Buy/Sell Separation — Volume is classified based on bar direction (close >= open = buying volume, close < open = selling volume)
  
  
• POC Detection — The row with maximum accumulated volume is identified as the Point of Control
  
  
• Value Area Calculation — Starting from POC, expands outward (alternating up and down) until target volume percentage is captured
  

Key Concepts Explained

• Point of Control (POC) — The price level with the highest volume concentration. Often acts as a magnet for price and represents "fair value" for the analyzed period. Price tends to return to POC.
  
  
• Value Area High (VAH) — Upper boundary of the value area zone. Acts as resistance when price is below, support when price is above.
  
  
• Value Area Low (VAL) — Lower boundary of the value area zone. Acts as support when price is above, resistance when price is below.
  
  
• Value Area — Price range containing specified percentage (default 70%) of total volume. This is where most trading activity occurred.
  

Visual Features

• Volume Histogram — Horizontal bars showing volume at each price level
  
• Buy/Sell Coloring — Green portions show buying volume, red shows selling volume
  
• POC Highlight — The POC row has a distinct orange border and fill
  
• POC Line — Horizontal line extending from POC (optional extension to right)
  
• Value Area Lines — Dashed blue lines at VAH and VAL
  
• Value Area Fill — Subtle blue fill between VAH and VAL
  

Color Scheme

• Up Volume Color — Default: #26A69A (teal) — Buying volume
  
• Down Volume Color — Default: #EF5350 (red) — Selling volume
  
• POC Color — Default: #FF9800 (orange) — Point of Control
  
• Value Area Color — Default: #2196F3 (blue) — VAH/VAL lines and fill
  

Dashboard Information

The on-chart table (bottom-right corner) displays:

• POC price level
  
• Value Area High price level
  
• Value Area Low price level
  
• Current price position relative to POC (ABOVE POC, BELOW POC, or AT POC)
  
• Distance from current price to POC as percentage
  

Inputs Overview

Calculation Settings:

• Lookback Period — Number of bars to analyze (default: 100, range: 20-500)
  
• Number of Rows — Price level divisions for the profile (default: 24, range: 10-50)
  
• Value Area % — Percentage of volume for value area calculation (default: 70%, range: 50-90%)
  

Visual Settings:

• Up/Down Volume Colors — Customizable buy/sell colors
  
• POC Color — Point of Control highlighting
  
• Value Area Color — VAH/VAL line and fill color
  
• Profile Width — Visual width of histogram in bars (default: 30, range: 10-100)
  
• Show POC Line — Toggle POC horizontal line
  
• Show Value Area — Toggle VAH/VAL lines and fill
  
• Show Dashboard — Toggle the information table
  
• Extend Lines — Project POC and VA lines further right
  

How to Use It

For Support/Resistance:

• Use POC as a potential support/resistance reference point
  
• Price often gravitates back to POC (mean reversion)
  
• VAH acts as resistance when approaching from below
  
• VAL acts as support when approaching from above
  

For Trend Analysis:

• Price above POC suggests bullish control
  
• Price below POC suggests bearish control
  
• Breaking out of Value Area often leads to trending moves
  
• Returning to Value Area suggests failed breakout
  

For Entry/Exit:

• Enter longs near VAL with stops below
  
• Enter shorts near VAH with stops above
  
• Target POC for mean-reversion trades
  
• Use POC as a trailing stop reference in trends
  

Alerts Available

• VPL Cross Above POC — Price crosses above Point of Control
  
• VPL Cross Below POC — Price crosses below Point of Control
  
• VPL Cross Above VAH — Price breaks above Value Area High
  
• VPL Cross Below VAL — Price breaks below Value Area Low
  

Best Practices

• Use longer lookback periods for more significant levels
  
• Increase row count for more precise level identification
  
• POC from higher timeframes is more significant
  
• Combine with other indicators for confirmation
  

This indicator is provided for educational purposes. It does not constitute financial advice. Past performance does not guarantee future results. Always conduct your own analysis and use proper risk management before making trading decisions.

— Made with passion by officialjackofalltrades