Volume Profile Bias

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Volume Profile Bias

Description

This advanced Pine Script indicator combines volume profile analysis with delta histogram visualization and intelligent directional bias detection. It provides comprehensive market structure analysis by examining volume distribution, buying/selling pressure, and price acceptance levels to generate actionable trading signals.

Key Features:

1. Volume Profile: Visual representation of volume at different price levels
   
2. Delta Histogram: Shows buying vs selling pressure (green = buyers, red = sellers)
   
3. Directional Bias: AI-powered bias detection with detailed reasoning
   
4. Value Area Analysis: Identifies high-volume nodes (HVN) and low-volume nodes (LVN)
   
5. VWAP Integration: Volume-weighted average price with momentum analysis
   
6. Profile Shape Analysis: Categorizes volume distribution patterns
   

How to Use

Setup

1. Add the indicator to your TradingView chart
   
2. Adjust settings:
   - Price Bars: 40 (default) - more bars = higher resolution
   - Lookback Length: 200 bars for analysis period
   - Max Box Width: Controls visual size of volume bars
   

Trading Strategy (Experimental - Not Fully Tested)

Primary Method: Chaos Theory Confirmation

1. Use alongside Jace's Chaos Theory indicator
   
2. Wait for "Waiting for Validation..." labels to appear
   
3. Check the Volume Profile bias label for entry direction
   
4. Enter trades only when both indicators align
   

Bias Interpretation

Strong Signals (High Confidence):

• Very Strong Bullish/Bearish - Strong trend + volume confirmation
  
• Strong Bullish/Bearish Trend - Trending market with momentum
  
• Bounce/Rejection Expected - Key level reactions anticipated
  

Moderate Signals:

• Strong Bullish/Bearish - Good directional bias
  
• Momentum Bullish/Bearish - LVN breakout/breakdown
  
• Bullish/Bearish - Standard directional bias
  

Caution Signals:

• Resistance/Support Ahead - Potential reversal zones
  
• Bullish/Bearish but Caution - Weakening momentum
  
• VAH Rejection - Failed breakout above value area
  

Neutral:

• Neutral - Price near POC, no clear direction
  

Key Levels

Visual Elements:

• Red Line: Point of Control (POC) - highest volume price
  
• Green Line: Value Area High (VAH)
  
• Orange Line: Value Area Low (VAL)
  
• Purple Line: VWAP
  
• Blue Boxes: Volume profile (darker = more volume)
  
• Green/Red Boxes: Delta histogram (buying/selling pressure)
  

Important Notes

⚠️ EXPERIMENTAL INDICATOR - Not fully tested in live trading
⚠️ USE AT YOUR OWN RISK - Always practice proper risk management
⚠️ BACKTEST THOROUGHLY - Test on historical data before live use
⚠️ COMBINE WITH OTHER ANALYSIS - Don't rely solely on this indicator

Profile Shape Meanings

• Upper-Heavy: More volume in upper price range (bullish accumulation)
  
• Lower-Heavy: More volume in lower price range (bearish distribution)
  
• Balanced: Even volume distribution (consolidation/range)
  

The percentage shown indicates the proportion of volume in the upper half of the profile, helping identify institutional activity patterns.

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Note di rilascio

Volume Profile Bias Description

This advanced Pine Script indicator combines volume profile analysis with delta histogram visualization and intelligent directional bias detection. It provides comprehensive market structure analysis by examining volume distribution, buying/selling pressure, and price acceptance levels to generate actionable trading signals.

Key Features:

1. Volume Profile: Visual representation of volume at different price levels
   
2. Delta Histogram: Shows buying vs selling pressure (green = buyers, red = sellers)
   
3. Directional Bias: AI-powered bias detection with detailed reasoning
   
4. Value Area Analysis: Identifies high-volume nodes (HVN) and low-volume nodes (LVN)
   
5. VWAP Integration: Volume-weighted average price with momentum analysis
   
6. Profile Shape Analysis: Categorizes volume distribution patterns
   

How to Use

Setup

1. Add the indicator to your TradingView chart
   
2. Adjust settings:
   - Price Bars: 40 (default) - more bars = higher resolution
   - Lookbook Length: 200 bars for analysis period
   - Max Box Width: Controls visual size of volume bars
   

Trading Strategy (Experimental - Not Fully Tested)

Primary Method: Chaos Theory Confirmation

1. Use alongside Jace's Chaos Theory indicator
   
2. Wait for "Waiting for Validation..." labels to appear
   
3. Check the Volume Profile bias label for entry direction
   
4. Enter trades only when both indicators align
   

Bias Interpretation

Strong Signals (High Confidence):

• Very Strong Bullish/Bearish - Strong trend + volume confirmation
  
• Strong Bullish/Bearish Trend - Trending market with momentum
  
• Bounce/Rejection Expected - Key level reactions anticipated
  

Moderate Signals:

• Strong Bullish/Bearish - Good directional bias
  
• Momentum Bullish/Bearish - LVN breakout/breakdown
  
• Bullish/Bearish - Standard directional bias
  

Caution Signals:

• Resistance/Support Ahead - Potential reversal zones
  
• Bullish/Bearish but Caution - Weakening momentum
  
• VAH Rejection - Failed breakout above value area
  

Neutral:

• Neutral - Price near POC, no clear direction
  

Key Levels

Visual Elements:

• Red Line: Point of Control (POC) - highest volume price
  
• Green Line: Value Area High (VAH)
  
• Orange Line: Value Area Low (VAL)
  
• Purple Line: VWAP
  
• Blue Boxes: Volume profile (darker = more volume)
  
• Green/Red Boxes: Delta histogram (buying/selling pressure)
  

Important Notes

⚠️ EXPERIMENTAL INDICATOR - Not fully tested in live trading
⚠️ USE AT YOUR OWN RISK - Always practice proper risk management
⚠️ BACKTEST THOROUGHLY - Test on historical data before live use
⚠️ COMBINE WITH OTHER ANALYSIS - Don't rely solely on this indicator

Profile Shape Meanings

• Upper-Heavy: More volume in upper price range (bullish accumulation)
  
• Lower-Heavy: More volume in lower price range (bearish distribution)
  
• Balanced: Even volume distribution (consolidation/range)
  

The percentage shown indicates the proportion of volume in the upper half of the profile, helping identify institutional activity patterns.