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Profile volume deviation

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This indicator calculates the width of the 70% Value Area of a moving volume profile over a defined number of candles.

It begins by identifying the highest and lowest points of the period under review, then divides this price range into several segments. For each candle, the volume is added to the segment corresponding to the closing price, which allows a volume profile to be constructed.

Once the total volume is known, the indicator identifies the most traded segment, called the Point of Control. From this central point, it gradually widens the area upwards and downwards by adding the most voluminous adjacent segments until it covers 70% of the total volume: this is the Value Area.

The lower and upper limits of this area are then converted into prices, and their difference gives the width of the Value Area. This width can be displayed directly as a price value or as a percentage of the current price.

The indicator is mainly used to assess the state of the market: a narrow Value Area suggests a phase of compression or range, while a wide Value Area indicates a period of expansion and strong activity.

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