Volume Cluster Profiles with Gaussian-Weighted Volume Peaks

Summary

This indicator builds a volume histogram across a recent price range, divides it into configurable price bins, and draws the profile beside the current bar. It identifies high-volume bins as candidate cluster centers, then applies a Gaussian weighting around those centers to create an enhanced profile. The highest enhanced bin is marked as the point of control, with optional lines for cluster centers.

The script also detects pivot highs and lows to define historical swing segments and can draw profiles for those segments, including the last segment’s value-area and low-value extensions. Users can adjust lookback, bin count, cluster spread, peak count, and display settings. These profiles are visual analysis aids: the document provides implementation details but no market tests or evidence that the enhanced peaks predict future price behavior. The “pseudo-AI” label describes a smoothing calculation, not a demonstrated learning system.

Key ideas

• The current profile bins traded volume across the selected recent price range.
• Gaussian weighting around detected high-volume bins creates the enhanced profile.
• The highest enhanced bin defines the displayed point of control.
• Pivot-based swing segments support historical profiles and optional value-area extensions.
• The script gives no performance evidence for using the displayed levels as trading signals.

Tags

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