Discussing the article: "Creating Custom Indicators in MQL5 (Part 8): Adding Volume Integration for Deeper Market Profile Analysis"

 

Check out the new article: Creating Custom Indicators in MQL5 (Part 8): Adding Volume Integration for Deeper Market Profile Analysis.

In this article, we enhance the hybrid Time Price Opportunity (TPO) market profile indicator in MQL5 by integrating volume data to calculate volume-based point of control, value areas, and volume-weighted average price with customizable highlighting options. The system introduces advanced features like initial balance detection, key level extension lines, split profiles, and alternative TPO characters such as squares or circles for improved visual analysis across multiple timeframes.

The integration of volume data into hybrid Time Price Opportunity (TPO) market profiles elevates traditional price-time analysis by incorporating trading volume at each price level, allowing for the identification of volume-based point of control where the highest volume occurred, and adjusting value areas to reflect actual market participation rather than just time spent. This enhancement provides us with insights into market conviction, such as distinguishing between high-volume fair value zones for potential support or resistance and low-volume areas indicating weak interest or possible breakouts, while features like volume-weighted average price offer a dynamic reference for intraday bias.

We will extend the core session management with volume accumulation per price level, compute volume point of control and weighted average price optionally, detect initial balance from early periods, add extension rendering for key levels like highs, lows, value area boundaries, and midpoint, incorporate character variations and marking options for opens, and enable split views with padding for clearer alphabetic displays, all while supporting fixed-range backgrounds and volume labels for comprehensive profile visualization. In brief, here is a visual representation of our objectives.

VOLUME MARKET PROFILE ROADMAP

Author: Allan Munene Mutiiria