Volume Profile: HVN, LVN & Delta

Description field:
Volume Profile: HVN, LVN & Delta is a high-performance, optimized structural analysis tool designed to visualize the distribution of volume over price levels.

Unlike standard Volume Profile indicators that often suffer from "Loop takes too long" runtime errors on high resolutions, this script utilizes a mathematically optimized binning algorithm. This allows for a smooth loading experience even with high precision settings, providing deep insights into market structure without lagging the chart.

1. Key Concepts & Features
This indicator breaks down market data into several key components to help traders identify where value has been established and where price has been rejected.

Rolling Volume Profile: The profile is calculated based on a rolling window of bars (user-defined period). This ensures the data is always relevant to the current market context, dynamically updating as price moves.

HVN (High Volume Nodes): Displayed as colored zones, these represent prices where a significant amount of trading occurred.

Significance: These areas indicate market acceptance and often act as strong Support or Resistance (magnets).

LVN (Low Volume Nodes): Displayed as subtle gray strips, these are areas with very little volume (gaps in the profile).

Significance: These represent price rejection or rapid movement. Price often moves quickly through LVNs to reach the next HVN.

Delta Coloring: The profile bins are colored based on Delta (Buying Volume vs. Selling Volume).

Teal: Net Buying pressure in that price zone.

Maroon: Net Selling pressure.

Value Area (VA) & PoC:

PoC (Point of Control): The single price level with the highest volume.

VA (Value Area): The range where 70% (customizable) of the total volume occurred.

Structural Pivots: The script plots recent Pivot Highs and Lows, but filters them based on Volume. A pivot is only highlighted if it carries significant volume relative to the PoC, filtering out "noise" pivots.

Real-Time Dashboard: A compact panel displaying:

Distance from PoC, VAH, and VAL.

Net Delta for the period.

Current Trend status relative to the EMA 50.

2. How to Use This Indicator
This tool is designed for Auction Market Theory traders. Here are practical ways to interpret the signals:

A. Determining Trend State
Inside Value (Range Bound): When price is strictly between VAH (Value Area High) and VAL (Value Area Low), the market is in balance. Strategies often focus on mean reversion towards the PoC.

Outside Value (Imbalance): When price breaks and holds above VAH or below VAL, it signals a potential trend initiation or a search for new value.

B. Using HVN and LVN
HVN Defense: If price retraces to an HVN (High Volume Node), look for a reaction. Since fair value was established here previously, institutional orders often reside here.

LVN Acceleration: If price enters an LVN, expect increased volatility. Since there is little liquidity in these zones, price tends to "jump" through them until it finds the next HVN.

C. Delta Analysis
Look at the dashboard or the profile color. If price is rising but the Total Delta is negative (Red), it may indicate a "weak high" or absorption, suggesting a potential reversal.

3. Technical Optimization (Why this script?)
Calculating Volume Profiles on Pine Script is computationally expensive. Standard methods loop through every past bar for every price level, leading to timeouts.

This script solves this by:

Direct Indexing: Calculating the bin index mathematically rather than via search loops.

Smart Memory Management: Using explicit array clearing and garbage collection on the last bar.

Safety Breaks: Implementing fail-safes in the Value Area calculation to prevent infinite loops during flat markets.

4. Settings
Rolling Period: How far back the profile looks (Default: 150 bars).

Resolution: The vertical precision of the histogram (Default: 70). Note: Higher resolution = more detail but more CPU load.

HVN/LVN Thresholds: The percentage of PoC volume required to tag a zone as High or Low volume.

Pivot Vol Filter: Filters out weak pivot points that do not possess enough volume structure.

Disclaimer: This indicator is for educational and analytical purposes only. It does not provide financial advice.