Building a Higher-Timeframe Volume Profile from Lower-Timeframe Bars

Summary

This indicator builds a volume profile for the current higher-timeframe period by dividing its evolving price range into bins. As each lower-timeframe candle arrives, its volume is added to every price bin that the candle’s high-to-low range touches. Line thickness represents accumulated volume, the most active bin is highlighted, and a point-of-control line marks its level. A box shows the period’s range as it develops. The indicator can choose a higher timeframe automatically or use user-selected timeframes, and the user can change the number of bins and maximum display width.

The creator contrasts this approach with profiles that display only a completed prior period: these bins collect data as the current period unfolds. The description explains the visual construction and Pine drawing technique, but gives no trading rules or evidence that the profile predicts price. Because candle volume is assigned to every crossed bin, the display is an approximation of volume by price rather than a record of transactions at each exact price. Its usefulness depends on timeframe and chart data.

Key ideas

• The current period’s price range is divided into configurable bins.
• Each lower-timeframe candle adds its volume to bins crossed by its high-to-low range.
• Line thickness visualizes bin volume, and the most active bin is highlighted with a point-of-control level.
• The profile updates during the active higher-timeframe period rather than showing only a completed period.
• The document describes a visualization method but provides no trading rules or predictive evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.