Auto Anchored Volume Profile
Auto Anchored Volume profile indicator to identify potential support and resistance zones, along with weak and strong Point of Control (POC) levels.
Understanding the Concepts:
Volume Profile: This chart depicts trading activity at various price levels over a chosen timeframe. Higher volume areas represent price levels where most buying and selling happened.
Point of Control (POC): The price level with the highest volume traded within the timeframe. It represents the price where most agreement existed between buyers and sellers.
High Volume Nodes (HVN): Areas on the volume profile with significantly higher volume compared to surrounding areas. These can indicate potential support or resistance.
Delta (Sentimental): This volume profile type shows the difference between buying and selling volume at each price level. Positive delta indicates buying dominance, while negative delta suggests selling pressure.
Strategy Breakdown:
Identify Volume Shelves:
Look for areas with concentrated volume on the profile. These areas, called shelves, can act as support (high volume at lower prices) or resistance (high volume at higher prices).
Analyze POC Strength (POC Volume Percentage):
Calculate the Volume Percentage: (Volume at Price Level / Maximum HVN Volume over the Period) * 100
This ratio indicates the significance of the POC relative to the strongest volume area.
A high percentage suggests a strong POC, potentially indicating a more reliable support or resistance level.
A low percentage suggests a weak POC, with a higher chance of price breaking through that level.
Leverage Previous Session Data:
The strategy incorporates data from the previous session's POC and Highest Delta Node. These are displayed on the right side of the chart, extending the volume profile for reference.
Identify if the current price is trading above or below the previous session's POC. This can provide context for potential price direction.
The Highest Delta Node from the previous session indicates areas of strong buying or selling sentiment that might carry over to the current session.
Additional Anchor Point Types:
Pivot Points and Fixed Range Volume Profile can be added for further confirmation of support and resistance zones.
Pivot points are calculated automatically based on the price changes direction
Fixed Range Volume Profile focuses on a specific price range, allowing detailed analysis within that zone.
Timeframe Considerations(AUTO):
The resolution for calculating pivot points is determined automatically:
- For intraday resolutions up to and including 15 minutes, the daily (1D) timeframe is used.
- For intraday resolutions more than 15 minutes, the weekly (1W) timeframe is used.
- For daily resolutions, the monthly (1M) timeframe is used.
- For weekly and monthly resolutions, the 12-month (12M) timeframe is used.
Trading with the Strategy:
Look for price approaching a volume shelf identified on the profile.
Analyze the POC Volume Percentage to gauge the strength of the POC as potential support or resistance.
Consider the previous session's POC and Highest Delta Node for additional context.
Combine volume profile insights with other technical indicators and price action confirmation for entry and exit signals.
Remember, strong POCs with high volume shelves suggest more reliable support/resistance, while weak POCs indicate a higher chance of price movement beyond that level.
Important Notes:
Volume profile is a tool to identify potential trading zones, not a guaranteed predictor of future price movements.
Always practice proper risk management techniques, including stop-loss orders.
Backtest this strategy on historical data to understand its effectiveness before risking real capital.
By understanding volume distribution and POC strength, this strategy can help you make informed trading decisions based on where most buying and selling activity has occurred. Remember, a comprehensive trading approach that considers multiple factors is crucial for success.
Understanding the Concepts:
Volume Profile: This chart depicts trading activity at various price levels over a chosen timeframe. Higher volume areas represent price levels where most buying and selling happened.
Point of Control (POC): The price level with the highest volume traded within the timeframe. It represents the price where most agreement existed between buyers and sellers.
High Volume Nodes (HVN): Areas on the volume profile with significantly higher volume compared to surrounding areas. These can indicate potential support or resistance.
Delta (Sentimental): This volume profile type shows the difference between buying and selling volume at each price level. Positive delta indicates buying dominance, while negative delta suggests selling pressure.
Strategy Breakdown:
Identify Volume Shelves:
Look for areas with concentrated volume on the profile. These areas, called shelves, can act as support (high volume at lower prices) or resistance (high volume at higher prices).
Analyze POC Strength (POC Volume Percentage):
Calculate the Volume Percentage: (Volume at Price Level / Maximum HVN Volume over the Period) * 100
This ratio indicates the significance of the POC relative to the strongest volume area.
A high percentage suggests a strong POC, potentially indicating a more reliable support or resistance level.
A low percentage suggests a weak POC, with a higher chance of price breaking through that level.
Leverage Previous Session Data:
The strategy incorporates data from the previous session's POC and Highest Delta Node. These are displayed on the right side of the chart, extending the volume profile for reference.
Identify if the current price is trading above or below the previous session's POC. This can provide context for potential price direction.
The Highest Delta Node from the previous session indicates areas of strong buying or selling sentiment that might carry over to the current session.
Additional Anchor Point Types:
Pivot Points and Fixed Range Volume Profile can be added for further confirmation of support and resistance zones.
Pivot points are calculated automatically based on the price changes direction
Fixed Range Volume Profile focuses on a specific price range, allowing detailed analysis within that zone.
Timeframe Considerations(AUTO):
The resolution for calculating pivot points is determined automatically:
- For intraday resolutions up to and including 15 minutes, the daily (1D) timeframe is used.
- For intraday resolutions more than 15 minutes, the weekly (1W) timeframe is used.
- For daily resolutions, the monthly (1M) timeframe is used.
- For weekly and monthly resolutions, the 12-month (12M) timeframe is used.
Trading with the Strategy:
Look for price approaching a volume shelf identified on the profile.
Analyze the POC Volume Percentage to gauge the strength of the POC as potential support or resistance.
Consider the previous session's POC and Highest Delta Node for additional context.
Combine volume profile insights with other technical indicators and price action confirmation for entry and exit signals.
Remember, strong POCs with high volume shelves suggest more reliable support/resistance, while weak POCs indicate a higher chance of price movement beyond that level.
Important Notes:
Volume profile is a tool to identify potential trading zones, not a guaranteed predictor of future price movements.
Always practice proper risk management techniques, including stop-loss orders.
Backtest this strategy on historical data to understand its effectiveness before risking real capital.
By understanding volume distribution and POC strength, this strategy can help you make informed trading decisions based on where most buying and selling activity has occurred. Remember, a comprehensive trading approach that considers multiple factors is crucial for success.
릴리즈 노트:
Percentage Improvements
릴리즈 노트:
Intrabar Precision and Mitigated options have been added