Building Volume Profiles for Completed and Forming Swing Legs
Summary
The indicator builds a separate volume profile for each completed price swing, plus a live profile for the swing still forming. It identifies swing highs and lows with a configurable lookback, then divides each leg’s price range into bins sized using half of a long-period average true range. Bar volume is assigned to nearby bins based on the close; bullish bars count as buy volume and other bars as sell volume. The most active bin is marked as the point of control (POC), and the current leg’s label summarizes total, buy and sell volume and volume delta.
The profile shape and POC location are presented as ways to inspect where trading concentrated during impulses and pullbacks, compare their participation, and track possible reference levels if price revisits a leg. These are interpretive uses, not validated trading rules: the document gives no performance tests, and its buy/sell classification is based on bar direction rather than observed aggressor-side trades. The calculation also requires historical bars for its volatility-based bin sizing and is limited to a recent chart window.
Key ideas
- The indicator anchors a separate volume profile to each completed swing leg.
- Swing direction and turning points are determined with a configurable lookback.
- Price bins use a volatility-based width, and bar volume is allocated by close proximity.
- The highest-volume bin becomes the leg’s point of control.
- Comparisons between impulse and pullback profiles are suggested as context, not proven signals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.