Price Range Volume Profile [Pt]

2023년 8월 7일

█ Introduction

The Price Range Volume Profile (PRVP) is a revolutionary indicator. This tool stands out from its peers due to its unique ability to capture the entire price chart history, thus providing a comprehensive volume profile of the entire asset's trading history, as available on TradingView chart. It's worth noting that I believe this tool is the first of its kind to accomplish such a feat. A much recommended tool if you are a volume profile trader.

█ Main Features

► Historical Lookback: This feature dives deep into the past, grasping all the historical data of an asset. It's equipped to handle up to 20,000 bars, although users without a premium TradingView account are advised to keep it at a maximum of 10,000 bars, or just use the "Full Historical Lookback" feature.

► Volume Profile / POC: Displays the distribution of volume across price levels for the selected price range. The Point of Control (POC), which is the price level with the highest traded volume, is also highlighted.

► Customization: Users have the flexibility to adjust the profile's appearance, including profile width, horizontal offset, and the option to fill the background of the profile range.

► Time Weighting: This feature allows users to give more weight to recent trading activity, which can be especially useful for intraday traders or during times of high volatility. Note that this feature will impact the volume profile and POC level.

► Settings Table: A settings table is displayed on the chart for users to quickly reference their input parameters.

█ Input Parameters

► Lookback Timeframe: Determines the period for which the volume profile is generated.

► Price Range: The percentage distance to consider for the profile, adjusted above and below the current closing price.

► Profile Step size: The granularity of the volume profile. Users can opt for automatic step size based on a predefined calculation or set their preferred tick step size.

► Historical Bars Lookback: Determines the number of bars to include in the volume profile calculation.

► Profile Visuals: Adjust the appearance and layout of the volume profile on the chart.

► Extra: Additional settings including the display of a settings table and its location.

█ Basic Understanding of Volume Profile - How to use PRVP?

Volume Profile is a valuable tool for traders who want insights into where the majority of trading activity has occurred. Here are some tips to make the most of it:

► Understand the Basics: Before using the Volume Profile, ensure you understand the difference between it and the standard volume histogram. While both represent volume, the former displays it against price while the latter shows it against time.

► Identify High Volume Nodes (HVN) and Low Volume Nodes (LVN):
◊ HVN: Areas where there's a lot of trading activity and where the price has spent a lot of time. These areas can act as strong support or resistance.
◊ LVN: Areas where there's a lack of trading activity. Prices might move quickly through these areas, and they can act as potential breakpoints or accelerators for price movement.

► Locate the Point of Control (POC): This is the price level with the highest traded volume for a specified period. It often acts as a magnet for price, and it can serve as a pivot or reference point.

► Trend Confirmation: A shift in the volume profile from one price level to another can confirm a trend. For instance, if higher volume starts to build at higher price levels, it may indicate a strong uptrend.

► Watch for Volume Gaps: If there's a significant gap in the volume profile, prices may move quickly through these levels as there's little historical trading activity to act as support or resistance.

█ Other Usage Tips

◊ For optimal performance, ensure that the chosen timeframe aligns closely with the chart timeframe. Differences in timeframes may lead to minor discrepancies in the volume profile.

◊ To address any errors arising from too many levels displayed on the volume profile, consider increasing the Profile Step size or reducing the Price Range.

2023년 8월 20일

릴리즈 노트

Removed timeframe selection option to improve script efficiency.

2023년 8월 20일

릴리즈 노트

█ Feature Addition

► Smooth Filtering: this feature can be applied to the volume profile to reduce the noise or fluctuations in the data to get a clearer view of dominant volume levels.