Indicator Overview

The ETF Local Volume Profile is a sophisticated technical tool designed to visualise the structural DNA of Spot Bitcoin ETFs. This indicator maps market activity across a vertical axis, revealing exactly at what price levels the most significant institutional capital is being transacted.

The model processes historical volume and price action to identify the true gravity centres of the market. It calculates the relationship between price and volume density to pinpoint where market participants have found the most agreement (fair value) and where the market has historically rejected price, providing a clear map of institutional support and resistance zones for the major Bitcoin ETFs like IBIT, FBTC, and ARKB.

How To Use

The Local Volume Profile allows traders and investors to look under the hood of price action to identify high-probability transition zones and institutional points of interest.

• Point of Control (PoC): Indicated by the Lime Green horizontal line and the primary dashboard, the PoC represents the single price level with the highest traded volume for the selected timeframe. This is the "fairest" price in the eyes of the market and often acts as a powerful magnet or pivot point for future price action.

• The Value Area (VAH & VAL): The region highlighted by the semi-transparent green bars represents the Value Area (customisable, typically set to 70%). This zone encompasses the price range where the bulk of trading activity occurred.

• Value Area High (VAH): Often acts as structural resistance; breaking above it suggests a transition into a new bullish value regime.

• Value Area Low (VAL): Often acts as structural support; breaking below it suggests the market is seeking a lower "fair value" zone.

• Volume Nodes & Gaps: High-volume nodes (long bars) represent areas of high liquidity and consolidation, while volume gaps (short/empty bars) represent areas of low liquidity where price is likely to move rapidly due to a lack of historical friction.