Layered Volume Profiles for Multi-Horizon Price Context
Summary
This indicator draws up to four volume profiles over nested lookback windows: the full period and progressively shorter half, quarter, and eighth periods. Each selected price range is divided into equal bins. The script assigns candle volume to bins whose prices are near the candle close, then displays the resulting distribution, its maximum-volume price level, the range high and low, and aggregate volume labels. It also calculates a signed volume total by adding volume on up candles and subtracting it on down candles.
The layered view is intended to help compare high-volume price areas across horizons, while profile edges and overlapping points of control can serve as context for possible support, resistance, or acceptance zones. These are interpretive uses rather than tested trading rules. The binning method does not distribute volume from detailed trade data, and its candle-based signed total is only a rough proxy for buying and selling pressure. The document provides no backtest or evidence that the displayed levels predict future reactions.
Key ideas
- The indicator can display up to four profiles using nested lookback lengths.
- It divides each period's high-low range into equal price bins and assigns volume using candle closes near each bin.
- The highest-volume bin is marked as the point of control for each active profile.
- Signed volume is calculated from whether each candle closes above or below its open.
- Overlapping profile levels may inform discretionary analysis, but no predictive performance evidence is provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.