This indicator draws a volume profile by utilizing data from the lower timeframe to get a more accurate representation of where volume occurred on a bar to bar basis. The indicator creates a price range, and then splits that price range into 100 grids by default. The indicator then drops down to the lower timeframe, approximately 16 times lower than the current timeframe being viewed on the chart, and then parses through all of the lower timeframe bars, and attributes the lower timeframe bar volume to all grids that it is touching. The volume is dispersed proportionally to the grids which it is touching by whatever percent of the candle is inside each grid. For example, if one of the lower timeframe bars is interacting with "2" of the grids in the profile, and 60% of the candle is inside of the top grid, 60% of the volume from said candle will be attributed to the grid.
To make all of this magic happen, this script utilizes a quadratic time complexity algorithm while parsing and attributing the volume to all of the grids. Due to this type of algorithm being used in the script, many of the user inputs have been limited to allow for simplicity, but also to prevent possible errors when executing loops. For the most part, all of the settings have been thoroughly tested and configured with the right amount of limitations to prevent these errors, but also still give the user a broad range of flexibility to adjust the script to their liking.
📗 SETTINGS
Lookback Period: The lookback period determines how many bars back the script will search for the "highest high" and the "lowest low" which will then be used to generate the grids in-between
Number Of Levels: This setting determines how many grids there will be within the volume profile/fixed range. This is personal preference, however it is capped at 100 to prevent time complexity issues
Profile Length: This setting allows you to stretch or thin the volume profile. A higher number will stretch it more, vise versa a smaller number will thin it further. This does not change the volume profiles results or values, only its visual appearance.
Profile Offset: This setting allows you to offset the profile to the left or right, in the event the user does not appreciate the positioning of the default location of the profile. A higher number will shift it to the right, vise versa a lower number will shift it to the left. This is personal preference and does not affect the results or values of the profile.
🧰 UTILITY
The volume profile/fixed range can be used in many ways. One of the most popular methods is to identify high volume areas on the chart to be used as trade entries or exits in the event of the price revisiting the high volume areas. Take this picture as an example. The image clearly demonstrates how the 2 highest areas of volume within this magnified volume profile also line up to great areas of support and resistance in the market.
Here are some other useful methods of using the volume profile/fixed range
Identify Key Support and Resistance Levels for Setups
Hi, Im curious if the "point of interest" indicated by the dashed orange lines is simply an indication of the largest volume. Is this the case or is there more to this point of interest?
It would be great to be able to configure this to show x number of days back, even when viewing a different timeframe like x minutes. With the current configuration of taking x number of periods back, when you switch from 5 minute to 15 minutes to 4 hours, it's hard to figure out what's the lookback period.
An awesome way to be able to configure this is to be able to say show me the profile for the current week as it's developing, even when I am on the minutes timeframes. And then you could have 2 indicators one showing the current week, the second one showing the current day, and being able to use them on the minutes timeframe would be amazing for day trading.
It would indicate a lot of very useful support / resistance levels. Would love to be able to configure it like that.
netswimmer
⋅
hello i get study error on bar 56: cant call array methods when id of array is na. how can i fix this simply when i change any time frame dont get this error
BagzNFT
⋅
Nice one! Although it glitches when using the playback tool after a couple of candles
btcgotomoon2025
⋅
the beeeeeeeeeeeeeeeeeeeeeeeeeesssssssssssst
pvsk8055
⋅
Can you provide me through video explaination of this complete indicator on we can use better for proper entries in intraday
pankul55555
⋅
Hi ,Volume profile shown too close/overlapping to recent candle .tried all 3 setting but could not get it done correctly .Please check once.