The Delta / Volume profile is a tool used to identify high volume nodes (HVN) and low volume nodes (LVN). This tool records a historical gradient per tick of trades and deltas executed during the session. These zones can be critical in determining possible reversals, setting a stop loss, take profit, etc. For example, if the price enters an LVN, it can be expected to increase or decrease rapidly towards a more consolidated zone.
In the following images, you can see some examples of Delta / Volume profile views.
This volume profile has been designed to occupy minimal space on the screen, thus allowing more data to be viewed on the chart simultaneously.
This option allows you to set the number of ticks that will be grouped together as if they were a single one. This functionality simplifies the analysis in markets with very small ticks like some indices (NQ), some Forex instruments, and Cryptocurrencies.
With this option, you can set the ZOrder of the indicator. The ZOrder is an invisible Z-axis used by the graphics hardware to organize charts. In this way, you can configure the indicators so that some have visual priority over others.
This setting allows reducing the values of cryptocurrencies to the market unit. For example, in the case of Bitcoin (BTC), satoshis are converted to Bitcoins. This adjustment only takes effect in these types of markets and has no effect on others. By default, this option is enabled.
The “High Tag Font Color” option allows you to select the font color for the marks corresponding to the highest price recorded by the volume profile. This customization detail ensures that high price marks are clearly visible and recognizable, allowing you to quickly distinguish this key point during your analysis.
The “Low Tag Background Color” is a setting that defines the background color of the marks for the lowest price recorded by the volume profile. The color selected for this option can help you highlight the low price marks, making it easier to identify these critical points in the profile.
The “Low Line” option allows you to define the line that represents the lowest price recorded by the volume profile. This line is plotted on the chart and is used to clearly mark the lowest price point, providing a useful visual reference point during your analysis.
“POC Tag Font Color” is the option that allows you to select the font color for the Point of Control (POC) tag in the profile. By selecting a clearly distinguishable color for the POC, you can facilitate the quick identification of this crucial reference point in the volume profile.
The “POC Line” option allows you to define the line that marks the price of the Point of Control (POC) of the volume profile. This line is an important tool for quickly visualizing the price level at which the highest volume of trading has been recorded.
This is the font color for the tags marking the highest price within the value area of the volume profile.
This defines the background color for the Volume Weighted Average Price (VWAP) tag.
Define the background color for the tag of the lowest price within the value area
Define the line of the lowest price within the value area
The font color for the tags marking the lowest price within the value area of the volume profile
The font for the texts of the profile.
All values shown in the profile will be divided by this number and then rounded to the nearest integer. This setting is useful in high volume markets, as it provides more readable numbers.
This setting allows you to select if the profile will be attached to the left or right of the chart.
With this option, you can choose the color of the volume bars' border. If you prefer not to show them, you can select a transparent color here or choose a very large minimum height to display the border.
The color for the maximum volume bar’s text.
Color of the bars for positive delta values.
Color of the bars for negative delta values.
The color for the border of the delta bars. If you don’t want them to be shown, you can select a transparent color here or choose a very large minimum height to display the border.
This is the smallest font size when the profile contracts. Beyond this point, the text will be hidden.
This is the maximum size the text will have when the profile expands. It won’t grow beyond this number. This is useful to prevent other parts of the chart from being occluded when a too detailed view is expanded.
This is the height in pixels to display a border around the bars. If you want this border to be hidden, you can set a quite large value here so it will never be shown. For example, a value of 1000.
Text color of delta bars when delta is positive. If you don’t want this text to be shown, you can select a transparent color here.
Text color of delta bars when delta is negative. If you don’t want this text to be shown, you can select a transparent color here.
Color for the highest volume bar.
Color for the text of volume bars. If you don’t want this text to be visible, you can select a transparent color here.
The color of the volume bars.
This is the distance in pixels from the central line to the start of the text representation. It can be used to create a margin for a better visual effect or to prevent the text from being displayed over the bars if it’s declared larger than the profile width.
This is the profile’s width in pixels. Only the largest bar will have this number of pixels.
The profile is drawn from an imaginary central line. This setting defines the distance from the chart’s edge to this line.
This is a filter to remove market noise. It makes the indicator ignore any order size below the specified volume.
This setting is similar to the minimum order size, but it should rarely be used. It was included for completeness, but it could potentially be removed in later versions.
The Delta/Volume profile is a critical tool for market interpretation, capable of identifying high and low volume nodes, and providing valuable indications for trading strategies. Its flexibility and adjustability make it adaptable to a wide variety of markets, including indices, Forex, and cryptocurrencies.
The customizable setup allows adjusting the profile to each trader’s specific needs, offering options to group ticks, adjust the display, and control how data are represented and filtered. It also provides a range of aesthetic options to ensure that the profile is readable and coherently integrated with the rest of the chart.
Understanding and appropriately utilizing these features and settings will allow traders to take full advantage of the Delta/Volume profile, and enhance their ability to make informed and strategic decisions in the market.