The Volume Profile is an indicator that represents the volume traded at various price levels during a specific period. It visually shows where most transactions occurred, helping to identify key areas such as the Point of Control (POC), the Value Area, High Volume Node and Low Volume Node.

INDEX

• Settings-of-Use
• GENERAL
  • Profile Type
  • Profile Period
  • Lenght
• AUTO GROUPING
  • Grouping
  • Manual Ticks
• PLOT SETTINGS
  • Background/Text
    • Background
    • Text
  • VISUAL APPEARANCE
    • Width type
    • Current Width
    • Current Offset
    • Previous Width
    • Previous Offset
    • Show above bars
    • Visual Style
    • Show on the right
    • Always visible
  • POC (POINT OF CONTROL)
    • Enable
    • Highlight
    • Highlight color
    • Show line
    • Extend line
    • Line Color
    • Line width
  • VALUE AREA
    • Enable
    • % Value Area
    • Highlight
    • Highlight color
    • Show line
    • Developing
    • Extend line
    • Line color
    • Line width
  • VWAP
    • VWAP
      • Enable
      • Highlight
      • Highlight color
      • Show line
      • Developing 
      • Extend line
      • Line color
      • Line width
    • ENVELOPES
      • Envelope enabled
      • Envelope settings
  • SUMMARY
  • FILTER
    • Mode
    • Initial session
    • End session
    • Use End Session as Start Day

Use Settings

To apply the indicator Volume Profile to the chart, click on the Indicators function, and select Volume Profile from the list.

GENERAL

1. Profile Type

   Select the type of profile to display
   • Volume
     Shows the total volume traded at each price level. This option helps identify the most active price levels in terms of the amount of orders executed.
   • Bid Ask Volume
     Display volume separately for Ask (selling) and Bid (buying) orders, allowing a better understanding of the balance between buyers and sellers at each price level.
   • Delta
     Shows the volume delta, which represents the difference between the volume being bought (bid) and the volume being sold (ask). This parameter is useful for analyzing market pressure, highlighting whether the market is more oriented toward buying or selling by aggressive players.
   • Delta and total volume
     Provides a combination of delta and total volume, for a more complete view of market activity at each price level. This makes it possible to assess both the intensity of trade between bid and ask and the overall size of trade.

2. Profile Period

   Defines the reference period
   • Composite
     Calculates the volume profile over an extended period, combining the entire period of data loaded within the graph into a single profile.
   • Multiple Profile
     Show the volume profile for multiple separate periods, allowing you to compare different time intervals on the same graph.
   • Visible bars
     Calculates the volume profile only for the time interval currently visible on the chart. This allows you to focus only on the most relevant data based on the zoom or portion of the graph you are viewing.
   • Custom time
     Allows you to manually define a specific period for calculating the volume profile, using start and end dates and times.
3. Length Type
   Specifies unit of measure for calculating volume profile
   • Minutes
   • Days
   • Weeks
   • Months

4. Lenght

   This is a parameter that defines the length of the reference period for the Volume Profile, in combination with the Lenght Type chosen. For example, if the Lenght Type is set to minutes, days, weeks, months, or volumes, the length value specifies how many minutes, days, weeks, months, or volume units will be considered for the Volume Profile calculation, allowing precise customization of the analysis interval.

Below You'll find a representation with the different types of volume profiles on the Volsys platform.

AUTO GROUPING

• Grouping

  Profile grouping type
  • Automatic
    Allows you to select the automatic tick grouping mode. This option is useful for automating the definition of the level of granularity of the profile, adapting to market characteristics and chart resolution. 
  • Manual
    Allows to specify a custom number of ticks for profile grouping. 

• Manual Ticks

  Allows you to manually specify the number of ticks to be grouped together. This option provides precise control over the granularity of the profile, allowing you to tailor the grouping to suit your analysis needs. 

PLOT SETTINGS

Background/Text

1. Background

   Background setting of Volume Profile
   • GENERAL
   • Color Mode
     • None
       No coloring is applied to the volume profile. This option shows the data without color highlighting.
     • Fixed
       Applies a fixed color to the volume profile. All price levels are colored uniformly, without changes in intensity, maintaining a simple visual representation.
     • Fading color
       Applies a fading coloration effect, where the intensity of the color changes with volume. Price levels with higher volumes are represented with more intense colors, while smaller volumes are displayed with lighter colors, providing a more dynamic representation of volume.
     • Multiple color
       Use a variety of colors to represent different levels of volume. This option can be customized by the user by changing the range settings
   • Color Calculation
     • Volume
       This coloring method is based on the total volume exchanged
     • Delta
       color the profile according to the volume delta, which is the difference between buy (bid) and sell (ask) orders for each price level.
   • COLOR
     • Volume color
     • Fixed Bid color
     • Fixed Ask color
     • Line color
   • RANGE
   • Range Defining
     • Automatic
       Platform default ranges
     • EDIT
       Allows you to define user-customized ranges of values.

2. Text

   Activating it will show the total volume for each tick/level of the Volume Profile. This function allows you to customize the color of the BID, ASK, Total Volume and Font Size 

VISUAL APPEARANCE

Width type

Defines how to calculate the width of the volume profile. 

• Automatic
  The width of the Volume Profile is automatically determined by the system based on the resolution of the chart, optimizing the representation to ensure the best possible visibility.
• % Period
  Defines the width of the profile as a percentage of the reference period. This option provides a proportional representation that respects the temporal characteristics of the selected interval.
• Window width
  Allows you to set the width of the outline based on the size of the window visible on the chart. This mode is useful for adjusting the width of the Volume Profile in relation to the portion of the graph you are working with.

Current Width

Sets the width of the volume profile being formed (the last profile available).

Current Offset

Defines an offset of the volume profile being formed (the last profile available) i.e. the distance from the formation/position axis.

Previous Width

Determines the width of the profiles previous to the one being formed. For example, with this function you can set a different width of the volume profiles of previous days than the one of the current day.

Previous Offset

Sets an offset for profiles prior to the one being formed. 

Show above bars

When enabled, the volume profile is displayed in the foreground relative to the other elements of the chart.

Visual Style

Lets you choose a visual style for the profile and adjust the visual representation to the user's preferences.

• Automatic
  The system automatically selects the visual style best suited to the current conditions of the chart.
• Solid
  Shows the volume profile with a solid, continuous fill.
• Hollow
  View the volume outline using outlines without fill. This style is lighter visually and allows you to maintain a clean graphical appearance, making other indicators on the chart more visible.
• Line
  Represents the volume profile using only an outline. This style minimizes the amount of graphic elements, which is ideal for those who prefer a less loaded but still informative graph of traded volumes.
• Combined
  Use a combination of styles (such as solid and line) to represent the volume profile in more detail. This style can be useful for displaying different information simultaneously, such as total volume and delta differences, facilitating a more complete analysis.

Show on the right

Align the volume profile to the right of the chart. 

Always visible

When enabled, the volume profile will always remain visible on the chart, regardless of how you move within it or zoom in.

Volsys allows multiple Volume By Price indicators to be included in the same chart, allowing different profiles to be displayed according to user needs. Shown below is an image illustrating the use of multiple Volume By Price on the chart, positioned using offset settings

POC (POINT OF CONTROL)

1. Enable

   Enable or disable the Point of Control (POC) display on the chart. The POC represents the price level with the highest volume.

2. Highlight

   Allows you to visually highlight the POC, making it easier to identify than other price levels on the chart.

3. Highlight color

   It allows you to select the color used to highlight the POC, improving the visibility of this key layer.

4. Show line

   Defines whether and how to display a line for the POC on the chart, such as displaying the POC for the entire selected period or only on certain intervals.

5. Extend line

   Set the extension of the POC line, such as extending the line to the right edge of the graph to make the POC position obvious even at later times.
   • None
     Does not extend the POC line beyond the selected period. 
   • Till interaction
     Extends the POC line only as long as it is not "touched" or exceeded by the price. This means the POC is shown as long as the maximum volume level remains untested, which helps identify price levels that have not yet been taken up by the market.
   • Till end window
     Extends the POC line continuously across the entire graph. This keeps the POC visible even after it has been crossed.

6. Line Color

   Select the color of the line representing the POC. 

7. Line width

   Adjusts the line thickness of the POC. A thicker border makes the line more obvious, making it easier to identify.

VALUE AREA

1. Enable

   Enable or disable the display of the Value Area. The Value Area represents the price range within which a certain percentage volume of total trades has occurred.

2. % Value Area

   Defines the percentage of the total volume that is used to calculate the Value Area. For example, setting a value of 70% will show the price range within which 70% of the total volume occurred.

3. Highlight

   Select the option to visually highlight the Value Area on the candle. This allows you to highlight the area of greatest volumetric activity.

4. Highlight color

   Select the color used to highlight the area outside the Value Area. This helps clearly differentiate the area inside from the area outside the selected value.

5. Show line

   Delimits the extremes of the Value Area High and Low by drawing a line on the graph.

6. Developing

   Developing mode plots on the chart the shifting of the Value Area Low and Value Area High, continuously adapting to changes in traded volume. This feature allows real-time visualization of changes in the price levels that contain most of the market activity.

7. Extend line

   • None
     Does not extend Value Area lines beyond the selected period.
   • Till interaction
     Extends the Value Area lines only as long as it is not "touched" or exceeded by the price. This means that Value Area lines are shown until they are taken up by the market.
   • Till end window
     Extends the Value Area lines continuously across the entire graph. This keeps them visible even after it has been passed.

8. Line color

   allows you to select the color of the line that delimits the Value Area price range on the chart 

9. Line width

   Allows you to adjust the thickness of the line delimiting the Value Area on the chart according to user preference.

VWAP

The VWAP (Volume Weighted Average Price) is a trading indicator that represents the volume-weighted average price of trades made during a certain period of time. VWAP is calculated by summing the value of all trades (price per volume) and dividing the result by the total volume. This indicator is thought to be particularly used by institutional traders to determine the average price at which trades were executed, considering volume as an important factor in measuring market behavior.

The VWAP is often used as a benchmark to assess whether a buy or sell price is good relative to the market. If the price of a security is above the VWAP, it means it is above the weighted average price and could be considered expensive. If the price is below the VWAP, it could be considered cheap.

The Standard Deviations of the VWAP are a way to measure price volatility relative to the volume-weighted average value. Standard deviations are bands that are drawn above and below the VWAP to identify the average distance of prices from the mean value. Each standard deviation indicates a "band" in the price range, providing traders with an idea of how far price is deviating from the VWAP by going to contextualize Premium and Discount zones.

In particular:

• First Standard Deviation (+1/-1): It shows the main level of volatility and represents the area where price tends to stay most of the time.
• Second Standard Deviation (+2/-2): Indicates an area of higher volatility and signals potential significant changes in price.
• Third Standard Deviation (+3/-3): Represents rarer events, signaling extreme price movements.
  The standard deviations of the VWAP are useful for identifying overbought and oversold areas and to help traders make entry or exit decisions based on price deviation from the VWAP.

VWAP

1. Enable

   Enable the display of VWAP (Volume Weighted Average Price) on the chart.

2. Highlight

   Highlights the VWAP within the Volume Profile to make it more visible on the chart. This feature makes it easy to distinguish the VWAP from other indicators and price levels.

3. Highlight color

   It allows you to select the color used to highlight the VWAP. Choosing an appropriate color improves readability and helps visually identify the VWAP quickly.

4. Show line

   Enables or disables the display of a continuous line representing the VWAP. When enabled, the line provides a graphical representation of the weighted average price value.

5. Developing 

   Enable the Developing VWAP, a dynamic version of the VWAP that updates in real time as new volumes are traded by drawing the developing line on the chart.

6. Extend line

   Allows you to extend the VWAP line along the entire graph.
   • None
     Does not extend valley lines beyond the selected period.
   • Till interaction
     Extends the VWAP line only as long as it is not "touched" or exceeded by the price. This means that the line is shown until it is taken up by the market. 
   • Till end window
     Extends the VWAP line continuously across the entire graph. This keeps it visible even after it is crossed.

7. Line color

   Defines the line color of the VWAP, further customizing the display to improve readability on the chart.

8. Line width

   Adjusts the line thickness of the VWAP. Greater thickness makes the line more visible, making it easier to identify in the context of the graph.

ENVELOPES

Envelope enabled

Enable the display of the VWAP bands (Envelopes), which represent the standard deviations around the VWAP. 

Envelope settings

Opens the settings menu to further configure the VWAP bands, such as the number of standard deviations or other customization options.

SUMMARY

The Summary of the Volume Profile feature allows you to view a detailed summary of the volume data exchanged for each profile on the chart. The summary shows information such as total volume, delta, number of trades, number of ticks, and other statistics related to market activity. This summary is useful for quickly understanding the main characteristics of the current volume profile and previous profiles, making it easier to analyze and compare different market sessions.

FILTER

The functionality of Filter of the Volume Profile allows you to configure specific time sessions for volume profile calculation. This is particularly useful for adapting volume analysis to financial markets that operate in different time zones.
 

For example, a trader trading in U.S. markets can set the start and end of the session according to U.S. time (such as Eastern Time or Central Time), ensuring that the Volume Profile accurately reflects the relevant market sessions.

1. Mode

   It allows you to select the type of temporal filter to apply to the Volume Profile. The filter option allows you to define a specific interval for volume analysis, isolating the desired period or dividing into multiple periods, e.g., ETH and RTH.
   • None
     No filter is applied. All volume profile data is displayed without modification, maintaining a complete and detailed representation of trade volume for the selected period.
   • Filter
     Allows you to apply a custom temporal filter to limit the volume profile data to a specific period. This mode is useful for analyzing a specific time frame of interest, isolating relevant data.
   • Splitted
     Divides the volume profile into separate sections, for example by morning and afternoon trading session. This mode allows volume data to be analyzed separately for each part of the day, providing a more detailed view of volume distribution.
   • Triple
     Applies a triple split to the volume profile data, which is useful for examining specific trading periods such as opening, mid-session, and closing. This mode provides a segmented view of volume to analyze how trading interest changes throughout the day.

2. Initial session

   Sets the start time of the trading session to be considered for profile calculation. This value is specified based on the US time zone, allowing the start of the session to be aligned with the opening of the US market.

3. End session

   Defines the end time of the trading session. This value also follows the US time zone, ensuring that the volume profile calculation covers the entire relevant trading period.

4. Use End Session as Start Day

   This setting, when enabled, uses the end time of the previous session as a reference for the start of the new trading day. It is useful for maintaining continuity in volume analysis and aligning consecutive sessions.