A volume profile is an advanced charting tool that displays the traded volume at different price levels over a specific period. It helps you visualize where the majority of trading activity has occurred.
This indicator is a Market Profiling tool used to analyse the Point of Control (POC) and Value Area (VAH/VAL) on the daily, weekly and monthly timeframes. It also optionally displays historical Value Areas to help find confluence with past data.
The Point of Control describes the price level where the most volume was traded. A Naked Point of Control (also called a Virgin Point of Control) is a previous POC that has not been traded.
The Value Area is a range of prices where the majority of trading volume took place on the prior trading day. In specific, this area is the range where 70% of the prior day’s volume happened. The value area is approximately one standard deviation above and below the average highest volume price. With this knowledge, there are specific probabilities of market behavior we can understand to digest the value area. The value area gives us an idea of where the smart money is playing ball and where the institutions are guiding the market. From this data, we can derive intra-day strategies that capitalize on market behavior.
🔹 Point of Control (PoC)
Point of Control (POC) – The price level for the time period with the highest traded volume
🔹 Value Area (VA)
Value Area (VA) – The range of price levels in which the specified percentage of all volume was traded during the time period.
This is really a value addition. Presently the color configuration doesn't seem to work. It will be great if the users are allowed to have their customized color configurations.
Wow! Thank you so much for this valuable indicator. Just a note, it may be better to mention specifically that the levels shown relate to previous day trading activity which are point of reference for today. Will it not be better to have single POC then lower as well as upper. Just curious to know how 2 POCs may help. Thanks.
Game_0f_Pivot
⋅
@aquarianup, We are able to decode the 2 POCs relationship but due to some limitations from TradingView itself we are unable to print it on indicator or Chart, till the time you can use SECRETS OF PIVOTBOSS as reference to decode the relationships(Posted Below). But I Will assure that soon something will come as update to these indicator which will help us alot to identify the trends in the market.
Higher Value - Bullish Overlapping Higher Value - Moderately Bullish Lower Value - Bearish Overlapping Lower Value - Moderately Bearish Unchanged Value - Sideways/Breakout Outside Value - Sideways Inside Value - Breakout
aquarianup
⋅
@Game_0f_Pivot, Thats Gr8. Thanks. Right now, I am averaging the 2 PoC just to have single value. I'm not coder, so have an excel file which I made as 'Flight Plan' of PivotBoss where I enter all the values to ascertain these HV, Overlapping HV and others. Will eagerly look forward to the update.
Game_0f_Pivot
⋅
@aquarianup, As mentioned in earlier comments you can use VAL values to your fight plan to decode the relationships
Game_0f_Pivot
⋅
@aquarianup, Thanks sir for your valuable note.The TV System is restricting me to do the same, If we can add we surely release a new version of this script.
batrapulkit
⋅
please rename the script as volume profile instead of money zone. the reason being money zone primarily uses price for poc/vah/val and volume for vpoc