Indicator Overview

The Local Volume Profile is a sophisticated market-structure tool that visualises the distribution of the notional trading volume across specific price levels over a user-defined lookback period. Unlike standard time-based volume, this indicator reveals the "Price at Volume", highlighting the horizontal zones where the most significant capital exchange has occurred. Key horizontal markers, including the Point of Control (POC) and the Value Area High/Low (VAH/VAL), are dynamically projected across the selected timeframe to identify critical support and resistance zones rooted in historical liquidity.

Dual-Ticker Comparison Logic

The ‘Crypto’ fields allow the indicator to operate in both absolute price and relative performance modes, making it suitable for outright positioning or pair-based allocation decisions.

• Single Crypto Analysis: If Crypto 2 is left blank, the indicator measures Crypto 1 against US Dollars. This mode is designed to identify statistically stretched rallies, deep mean-reversion zones, and long-term accumulation conditions where price trades multiple standard deviations below its historical average.

• Relative Strength and Ratios: When both fields are populated, the indicator automatically constructs a ratio of Crypto 1 divided by Crypto 2, such as ETH/BTC or SUI/SOL. The metric is then calculated on the ratio itself, isolating relative performance and stripping out broad market beta. This enables precise identification of overperformance, underperformance, and regime shifts between assets.

How To Use

Traders utilise the Volume Profile to identify high-interest "nodes" where price is likely to stall or consolidate. The POC (bright green dashed line) represents the single most traded price level and acts as a powerful magnet; price often returns to this level during periods of indecision. The Value Area (shaded 70% of volume) defines the range where the market considers it to be "fairly valued”.

Breakouts above the VAH or below the VAL often signal the start of a new trend as the market moves to seek new liquidity. Conversely, low volume nodes (gaps in the profile) indicate price levels with little historical agreement, often resulting in rapid price acceleration or slippage through those zones. By adjusting the VP Period from 3 months to 8 years, you can shift from identifying local intraday pivots to major multi-year macro floors and ceilings.