Constructing Developing and Historical Volume Value Areas
Summary
This indicator builds price and volume distributions from lower-timeframe candle data, then displays Value Area High, Point of Control, and Value Area Low. It distinguishes developing levels for the active profile from completed levels for the prior profile, and can show multiple historical profiles. A profile period, such as a day or week, can be chosen independently of the source timeframe used to construct it; for example, daily levels can be calculated from M15 data.
The settings include tick or real volume, a configurable value area percentage, and optional session boundary lines. If real volume is missing or zero, the indicator falls back to tick volume. The description presents prior levels as possible areas of support, resistance, acceptance, rejection, or breakout reference, but provides no performance testing or rules for trading them. Current levels update as data arrives, while completed historical levels are intended to remain fixed, though they may change after a full chart refresh or when a new profile period begins. More granular source data also requires more processing.
Key ideas
- The indicator constructs price-volume profiles from a selected source timeframe.
- Developing VAH, POC, and VAL levels change as new data enters the active profile.
- Previous and historical completed profile levels can be projected into later sessions.
- Tick volume is used as a fallback when real volume is unavailable or zero.
- Lower-timeframe source data can provide more profile detail at greater processing cost.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.