Dynamic Volume Profile (DVP) is an advanced charting study that displays trading activity over a specified time period at specified price levels dynamically.
DVP typically based on price and volume information and it combines these factors in a way that displays price, volume and time frame on a single chart dynamically. You can gather a multitude of information with a glance.
The first thing that most traders will use dynamic volume profile for is identifying basic support and resistance levels. It is important to note that using Dynamic Volume Profile as an identifier for support and resistance levels is a reactive method.
Point of Control ( PoC ): It refers to the area in the chart with the most traded volume activity. This is by far the most relevant area you want to monitor as it can help to define the placement of your stops or the areas in the chart where you might find the most pristine entry levels. The highest concentrated area of volume for a particular period of time we will call it PoC or Point of Control and you will be surprised how many times it acts as a wall on a retest. Traders tend to factor this in as an area of support or resistance.
Value Area ( VA ): The range of price levels in which a specified percentage of all volume was traded. By default, the industry standards tends to be 70%.
Value Area High ( VAH ) – The highest price level within the value area.
Value Area Low ( VAL ) – The lowest price level within the value area.
The script creates up to 60 channels according to highest/lowest levels for specified time period and finds the total volume for each channel. Then it calculates Point of Control, Value area and VAH/VAL. the script shows POC channel and Value Area, and you can see VAH/VAL ve all channels optionally.
In this version, number of channels can be changed up to 60 optionally by user
If you find my works useful, please consider a donation BTC: 19qDW9AShZhBZsGuXcgRzam5Fbpc3EU8EV ETH: 0x39c8552371b9b7f4e324197af460ba8bc8e18ef9
What happens if channel input is greater than 60. But what exactly is it doing when it defines these channels? What does that mean?
LonesomeTheBlue
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@kakola, it can not be greater than 60. there are 60 different variables used for each channel (because no array usage in Pine yet), so currently maximum number of channels can be 60.
Heej
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Hey how's it going, just following up with you on a previous message on if you'd be willing to share only the POC channel portion of the script as it's a core component of my trading and I'd like to put all 4 of my POC channels on one indicator vs using 4 slots for them
PBazh
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Awesome work!
Heej
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Hey bro I might have messaged you on a different page by accident. Just wanted to know if it would be possible to share the script for only the POC channels. As I use a few channels for my trading strategy and right now I have to layer DVP 4 times.
Just wanted to write a script for my personal use (absolutely NOT monetized!!) To save 4 channels in 1 indicator slot. Would really appreciate it, I'm a novice trader on the long road of clawing my way back into the green and I finally found my edge in the markets using your POC channels. I have no problem sending you money for your troubles. Thanks in advance
cwthames
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Pretty sure I understand what the green area is... the Value Area. But the PoC is what in the red? Between the very tight red area or? Can you give a sample use? based on the BTC chart above?
InvestCHK
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Been trying to get v2 of this script to load but it keeps giving a study error.