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 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.
Thanks for the great work, would it be possible to plot label for total volume for each poc?
HanDollarian
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awesome stuff. Thanks so much
sourcey
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@VapeundTrade thanks so much for the coins, that's very kind of you :)
michisuperfreak
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Thanks. I have one problem though: The pmPOC changes depending on the timeframe (Daily vs 4H) and I don't understand why? The value should be timeframe independent?
FuriousTrading
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@michisuperfreak, I reached Support about this issue. It should not be Timeframe dependant but instead of use the lowest set of timeframe/datas to calculate this indicator. BUT they are doing it the cheap way and it's a no...
sourcey
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@michisuperfreak, hey there yes @FuriousTrading is correct, the more granular the price/volume data the more accurate this method of calculation will be so the lower the timeframe will be better. Its the best we can do with the data that's available
BInvestCH
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Nice! Searched since a long time for something like this.
What I miss is the VAL & VAH for the running day, i only see the POC.
hi..thanks for the indicator..while using it on indian indices,,nifty im getting error - index -1 is out of bounds, array size is 1..
what should i do to resolve this..?
pranaytrades
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@rohitp23feb, you need volume data (which indices don't have) for the indicator to work. Try with futures.