Volume Profile + Range v6.0 (formerly known as TPO) is a powerful tool that shows the distribution of trades by price levels over a specified time frame. It visualizes this data in a histogram format, where the width of each bar indicates the number of transactions executed at that price level.
If your broker provides real volume data, this indicator can represent that distribution as well.
Key Features:
- VP: Displays distributions with steps based on standard periods.
- VP-Range: Shows distributions for any selected period, using various methods for setting calculation boundaries.
- Customizable displayed data (histogram modes, max values).
- Ability to run multiple indicators on a single chart.
The VP tool breaks down the chart into intervals (equal by time), displaying distributions for each segment. The ranges must align with standard timeframe values and cannot be lower than the current one. For instance, if you're using H1, valid range values can be H1, H4, D1, W1, or MN1. MetaTrader 5 even features intermediate timeframes.
VP-Range operates based on a single range, with boundaries determined through one of the following methods:
- Arbitrarily using vertical lines.
- Using the last few minutes of chart data.
- Setting the right boundary and specifying the number of minutes to it.
When you set boundaries with lines, the bar at the right boundary isn’t included in calculations. This prevents changes in data and distribution types when switching timeframes.
Bear in mind that higher timeframe bars may display fewer bars from lower timeframes than expected, due to natural gaps in quote history caused by low liquidity and operational interruptions. So, if you set the indicator to display a week’s data before a specific bar, the left boundary might not align with the right one. Different trading centers may show varying data, but the overall results tend to be similar due to the extensive data applied.
Calculation Method
This indicator calculates the total number of trades executed at a specific price. Alternatively, if set to use real volume, it sums the volumes at that price.
The trading data is interpolated based on the highest accuracy terminal data available (M1 timeframe). Each bar is dissected into several trades based on estimated price movements within that bar. This feature sets it apart from many alternatives that lack interpolation and rely on the timeframe at which the indicator is executed.
While further accuracy could be achieved with better interpolation of M1 data to ticks, most brokers using MetaTrader 4 have their own quote flows, making such enhancements largely ineffective. Tests reveal that the distributions appear almost identical across brokers, yielding comparable results to those derived from the most accurate data.
Distribution maximums (modes) typically serve as support and resistance levels. However, searching for a maximum mode to determine a good level can be counterproductive due to the "shading problem"—where the next price cluster can obscure the previous one, and vice versa. Take a close look at the chart and define levels by analyzing the most relevant segments with VP-Range. Distributions over a larger range may carry more weight.
Version 6.0 introduces the capability to specify a data source timeframe. MetaTrader 5 also allows the use of ticks provided by your broker. Check the "Data source" parameter for more details.
Installation
To install, open your terminal settings (Tools > Options). Adjust the maximum number of bars based on how you intend to use the indicator within the Charts tab. Each day comprises 1,440 minutes (no more than 1,440 minute bars). For example, if you set "Max bars in chart" to 250,000, you can retrieve data for approximately 173 working days, assuming M1 data is available for that duration. A value of 65,000 allows for data from about 45 working days (two months plus a few days).
After changing parameters, restart the terminal. Be cautious with high values for the "Max bars in chart" setting, as this may significantly slow down the terminal and require more memory, even without indicators running. Remember, not all trading centers provide extensive chart history.
Installing the Indicator:
- Close the terminal.
- Download the archive containing the indicators and unzip it.
- Copy the indicator files (*.mq4 or *.mq5) into your terminal's indicator folder. You can find the working folder indicated in the terminal journal when you launch it.
- Reopen the terminal.
VP and VP-Range General Parameters
| Parameter | Description |
|---|---|
| Mode step (points) | The minimum step between the modes (subjectively selected for each symbol). |
| Point scale | Point scale when drawing the histogram. A larger value speeds up operations but may result in a rougher display. |
| Volume type | Volume type (tick or real). If your broker doesn't provide real volume, the indicator will display nothing. |
| Data source | Data source:
|
| Bar style | Histogram bar style:
|
| Color 1 | Histogram color 1. Set to None to use the chart background color. |
| Color 2 | Histogram color 2. Set to None to use the chart background color. |
| Line width | Line width when drawing the histogram. |
| Mode color (None=disable) | Local maximum color (distribution mode). Set to None to disable. |
| Maximum color (None=disable) | Maximum color. Set to None to disable. |
| Median color (None=disable) | Median color. Set to None to disable. |
| VWAP color (None=disable) | VWAP color (average weighted by price volume). Set to None to disable. |
| Mode line width | Mode line width. |
| Median & VWAP line style | Style of median lines and VWAP. |
| Identifier | Indicator ID; use different values for multiple instances on a single chart. |
VP Parameters
| Parameter | Description |
|---|---|
| Range period | Timeframe, only standard values from M1 to MN1 (1, 5, 15, 30, 60, 240, 1440, 10080, 43200). MT5 also allows for intermediate timeframes. |
| Range count | Number of ranges. |
| Time shift | Time shift from -12 to +12 hours with a one-hour step. |
| Draw direction | Histogram drawing direction - left to right or right to left. |
VP-Range Parameters
| Parameter | Description |
|---|---|
| Range mode | Range boundary indication method:
|
| Range minutes | Number of minutes for RangeMode 1 and 2. |
| Histogram position | Histogram location:
|
| Mode level line color (None=disable) | Color of levels plotted by modes. Set None to disable. |
| Mode level line style | Style of mode level lines. |
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