Pivot-Anchored Volume Profiles for Participation and Value Areas

Summary

This indicator builds a volume profile over each range between consecutive price pivots. It shows the distribution of traded volume across price rows, identifies the point of control (the row with the greatest volume), and marks the value area high and low for a configurable share of volume. These levels can help traders study where market activity concentrated and where price may encounter acceptance, support, or resistance.

Users can adjust pivot sensitivity, row count, profile placement, and display settings, and can extend point-of-control levels until price crosses or touches them. The script also offers volume-weighted bar colors and alerts for crossings of the point of control or value-area boundaries. These are charting and alerting features, not evidence of a profitable trading rule. The document provides no performance testing, and the levels depend on the selected pivot and profile settings.

Key ideas

• The profile aggregates volume by price between consecutive detected pivots.
• The point of control marks the price row with the most volume in the profiled range.
• The value area boundaries enclose a user-selected fraction of that range's volume.
• Users can configure profile resolution, placement, and how long selected levels extend.
• The indicator describes market structure but supplies no tested entry or exit strategy.

Tags

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