Developing Market Profile with Bar-Range Occupancy

Summary

This indicator builds a developing market profile over a configurable lookback. It divides the highest-to-lowest price range into equal price bands, then counts how many bars intersect each band using each bar’s high and low. The profile is drawn beside the latest bar, with band widths reflecting those counts and colors distinguishing relative frequency. Users can adjust the lookback, number of bands, display offset, colors, and minimum visible width.

The script can also plot historical level markers at the midpoints of price bands, and includes a time filter intended to reduce calculation work on earlier data. Its evidence is the plotted distribution itself; the document gives no trading rules, performance results, or validation. The measure is based on bar-range overlap rather than traded volume or conventional time-period TPO letters, so it should be interpreted as a visual summary of where bars spanned prices, not as a direct measure of transaction activity. The selected lookback and band resolution affect the shape of the profile.

Key ideas

• The script divides the recent high-low range into equally spaced price bands.
• Each bar adds one count to every band its high-low range intersects.
• Band widths and colors visualize relative bar occupancy.
• The lookback length, resolution, display offset, and visibility threshold are configurable.
• The profile measures bar-range overlap rather than traded volume.

Tags

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