Rolling Volume Profile for Locating the Point of Control

Summary

This document explains a rolling volume profile that estimates the Point of Control (POC), the price bin with the greatest accumulated volume over a recent lookback window. It divides the window’s high-to-low price range into bins, assigns each bar’s volume to a bin based on its closing price, and highlights the bin with the largest total. The plotted profile, POC line, optional smoothing, trend line, and high-low channel are intended to help visualize areas of concentrated trading activity.

The settings control the lookback length, number of price divisions, chart scale, POC trend averaging, smoothing, and optional channel and trend displays. The document proposes using high-volume levels as potential support or resistance when planning entries and exits. It provides indicator code and a conceptual explanation, but no empirical tests or performance evidence. The estimate depends on bin resolution and uses bar closing prices to allocate volume, so it is an approximation of traded volume by price; the document does not establish that price will react at the identified levels.

Key ideas

• The POC is the price bin with the highest accumulated volume in the selected range.
• The rolling calculation divides the recent high-low range into configurable price bins.
• Volume is assigned to bins according to each bar’s closing price.
• Optional smoothing, trend, and channel displays add context to the POC estimate.
• High-volume levels may be considered possible support or resistance, but the document gives no validation of that use.

Tags

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