Rolling Angled Volume Profile [Trendoscope®]

l’altro ieri

🎲 Volume Profile Indicators

🎯Traditional Volume Profile
Volume profile indicators visually represent the distribution of volume across price levels. These indicators typically operate on horizontal price levels, making them effective in identifying supply and demand zones in ranging markets. However, they are less useful in trending markets where price movements follow a slope.

🎯The Need for Angled Volume Profiles

Just as support and resistance levels differ from trendlines, volume profile indicators require an equivalent method to account for volume distribution along a sloped trajectory. This would enable more accurate volume analysis in trending markets.

We identified the need of Angled Volume profile and have already published few indicators that implements the concept.

1. Angled Volume Profile calculates volume distribution along a slope. Users interact with the indicator by selecting the starting point, after which the volume profile is calculated for the selected trajectory.
   
2. Volume Forks is another tool that extends angled volume profile analysis, aligning volume profiles along the trajectory of pitchforks.
   

🎲 Rolling Volume Profile Indicator
The Rolling Volume Profile offers a new approach to angled volume profile calculations, addressing some limitations of earlier implementations:

🎯 Rolling Calculation

• The volume profile is calculated for the last N bars of the instrument
  
• The slope of the profile lines is determined by the closing prices of the starting and ending bars
  
• Profiles are drawn in the direction of price movement between the start and end bars.
  

🎯 Dynamic Updates

• As new bars are added, the calculations are updated, and the profile is redrawn based on the latest data.
  
• This dynamic behavior earns it the name "Rolling Volume Profile."
  

🎯 Advantages Over Earlier Versions

• Unlimited Profile Lines: Unlike previous implementations limited to 500 profile lines, this indicator uses polyline objects, overcoming the restriction.
  
• Live Updates: Previous angled volume profile tools lacked real-time updates when new bars appeared. This limitation is resolved in the Rolling Volume Profile Indicator.
  

The Rolling Volume Profile provides an efficient and scalable solution for analyzing volume in trending markets.

🎯 Indicator Settings

Simple settings include few customisable options