Recommended for trading using Richard Wyckoff's VSA - Volume Spread Analysis.
The market is unfair if for no other reason than only 10% of participants manage 90% of funds. An ordinary trader has slim changes to stand against these "vultures". However, not everything is as hopeless as it seems at first glance. This problem can be solved. You just need to be among these 10% of kites, learn to predict their intentions and move with them.
Volume is the only preemptive factor which faultlessly work on any timeframe and symbol. First the volume appears/accumulated, and only then the price moves. The price moves from one volume to another. Areas, where volumes are accumulated on the chart, represent firm support/resistance levels.
The BoxChart indicator combines two components - the market profile (horizontal volumes) and standard tick volumes, detects their crossing areas, sorts and highlights these areas with corresponding color, and thus simplifies visual reception of the market situation.
You are able to view the volumes, analyze them and perform your deals based on them. The only unnecessary thing on the chart is the chart itself.
The method of trading using this indicator comes down to trading from one strong area to another. Areas of volume accumulation are regularly tested by the price, providing the best entry opportunity. We will never see what happens inside each accumulation but there are some signs which allow to predict further market movement. If you see that lower extreme points of the chart have "stronger" accumulation areas than the higher extreme points do, buy orders prevail on the market and we can await for an uptrend. And vice versa, if you see that higher extreme points of the chart have "stronger" accumulation areas than the lower extreme points do, sell orders prevail on the market and we can await for a downtrend.
The Indicator Features:
The indicator works on M1, M5, M15, M30, H1, H4, but it uses history data of М1 to perform calculations, therefore make sure to download the M1 history via the MT4 menu Service->History Center, or just by scrolling the М1 history against the stop. If there are no data, the indicator will display "No data period M1" and perform drawings from the place there the history is available.
The indicator performs all drawings only in the chart view area but you can scroll the chart to the history. The indicator is blinking when you scroll the chart. This happens because accumulations are resorted.
The indicator has the NoVolumes mode. When this mode is enabled, volume of each М1 candle used for calculation is assumed to be equal to its spread in points. And volume accumulations and profiles are calculated by the "FootPrint" principle.
Volume accumulations are sorted by the step of 1/6, so at the end we have six color graduations. You can set the color scheme of these graduations via color variables: LowestBoxColor - up to 1/6, LowBoxColor - up to 2/6, MiddleBoxColor - up to 3/6, MediumBoxColor - up to 4/6, HighBoxColor - up to 5/6, HighestBoxColor - up to 6/6 of the maximum accumulation in the visible view area. If you do not want any of these graduations to be on the chart, just set its color similar to the color of the chart background.
Accumulations having the same color but different length (within a single price line) are identical by volume.
Description of Other Variables:
Default settings are good for any symbol and any period, so we recommend using them.
- BoxStepPoint - fixed calculation grid step. Set in "previous" points, minimum value is 0, maximum value is 50. If set to zero, the calculation step is taken from the BoxStepPointPix variable. In order to avoid excessive load on the terminal, at least 20 "previous" points should be set for the symbols having a very small point size per a chart height (like GOLD).
- BoxStepPointPix - dynamic calculation grid step. Set in pixels, minimum value is 1, maximum value is 10.
- ProfileStepPoint - similar to BoxStepPoint, but for profile.
- ProfileStepPointPix - similar to BoxStepPointPix, but for profile.
- BoxDensity - each accumulation box represents a volume concentration rather than a total volume. A total volume may be insignificant but if its concentration per time unit is high, that is a sign of a high activity on that candle(s) and price level.
- ProfileVisible - enable/disable profile display.
- ProfileLeftPosition - if true, the profile is located on the left; if false - on the right.
- NoVolumes - if set to true, volumes of М1 candles are not used for calculations.
- ProfileColor - profile color.
- BorderColor - period border color.
ButtonsColor – background of the control buttons,
ButtonsTrueTextColor – text color of the active button,
ButtonsFalseTextColor – text and border color of the inactive button.
Added the button RS – Reset, reset the indicator to default settings (only for the selected period).
Increased the maximum calculated grid to 500 points. This is especially important for the symbols with a very small point value relative to the chart height, for example, GOLD and some indices.
Expanded the options for increasing a calculated grid in points. You can select from 1, 5, 10, 50, -50, -10, -5, -1.
Like in the version 1.8, the indicator memorizes if the chart shift is enabled, as well as the shift size.
Period frames can now be disabled. If their color is equal to the chart background one, the frames are not displayed.
Added the buttons allowing you to select the grid increment in points and pixels (located near BSP and BSPP ones). First, select an increment (+1, +5 or -5, -1), then click BSP or BSPP button. The calculation grid will then increase/decrease by the specified amount of points/pixels.
The indicator remembers its settings for each period of each symbol, including PV, PL, BD, OI, NM, NV buttons status, calculation grid step, calculation grid increment, as well as some chart parameters: display mode (candles, bars, or lines), tick volume display and horizontal scale. It is very convenient, especially if you frequently switch between periods. The settings are saved, and you do not have to constantly re-adjust them.
In the Not Merge mode, at the maximum horizontal chart scale, a numerical value of volumes is displayed for all boxes/clusters if a box height (in pixels) exceeds that of a font specified by the DigitalFontSize variable. As a result, we can see a common cluster chart for a selected period.
Fixed incorrect box marking in the open interest filtration mode (numerical value was marked correctly).
Added the NotMerge function – volume accumulations are not summed up and not clustered into larger boxes. Instead, they are analyzed in each candle separately. The function allows you to analyze the volume map in greater detail. Please note: The function does not freeze but consumes considerable CPU resources, especially at higher timeframes and fine calculation grid.
Shortened button names down to abbreviations to make them smaller:
Bsp – BoxStepPoint, calculation grid step in points.
Bspp – BoxStepPointPix, calculation grid step in monitor pixels.
PV – ProfileVisible, enable/disable profile.
PL – ProfileLeftPosition, profile to the left/right.
BD – BoxDensity, density (concentration), the function is not active in NotMerge mode.
OI – OpenInterest, open interest filtration mode.
NM – NotMerge, described above.
NV – NoVolumes, tick volumes are not used in calculations (pure FootPrint).
Volume accumulation areas and profile are now marked with numerical values as labels directly on each box and profile. BoxTextColor and ProfileTextColor variables set the color of the labels. DigitalFontSize variable sets the font size of these labels. Volume accumulations of the Lowest category are not labelled.
Added the OpenInterest function. Volumes - accumulated below and used above (buys followed by a sell) - nullify each other. Volumes - accumulated above and used below (sells followed by a buy) - nullify each other as well. The volumes remaning after the filtration form an open interest. We do not know its direction with certainty, but its location on a chart can be used as a clue. A gradual disappearance of a previously detected open interest means that it has already been used and the market reversal is near. Do not look for an open interest on a long interval. You will not find it due to its occurrence frequency and subsequent implementation. Only the current open interest is important for analysis.
Now we see only volumes on every part of the chart, on each of its candlesticks. For convenience, change the chart to the "line" view, disable the chart display by going to chart properties and setting "none" for its color, and view only volumes on the chart.
The ExcessRemove function has been removed. Now, to remove what you do not need, simply turn off the colors of the boxes you do not want to see.
Amount of price graduations reduced to six. Accumulation sorting step is 1/6 of the maximum accumulation in the visible area.
The color variables are divided into LowestBoxColor - lowest, LowBoxColor - low, MiddleBoxColor - below average, MediumBoxColor - above average, HighBoxColor - high, HighestBoxColor - highest.
Improved the accumulation sorting algorithm. Box colors are now more stable and less sensitive to chart scrolling, resizing and rescaling in horizontal direction.
Changed the default variable settings. As a result, box colors are now more stable and less sensitive to chart resizing and rescaling in vertical direction. New variable settings can be used on any symbol and timeframe.
Both line and bar charts are now available for display in addition to candles.
Added BoxDensity function: in this mode, each box shows the volume concentration rather than the total volume. The total volume may be inconsiderable but if its concentration per time unit is high, this is a sign of high activity on that candle(s) and that price level. The function provides good reversal points.
The ProfileLeftPosition variable allows you to set the profile to the right of the chart. If 'true', the profile is located to the left, if 'false' it is located to the right.
Period frames are now distributed the following way: М1 – M15 frame, М5 – H1 frame, М15 – H4 frame, М30 – session frame, Н1 – daily frame, Н4 – weekly frame.
If there are no M1 data, the indicator will display "No data period M1", though it will continue working from the point the history is present.
The chart can now be displayed either above or below the indicator (it was located only below the indicator previously).
Added color variables to the indicator properties (Inputs tab).
There are still eight color graduations corresponding to the following variables: Box1Color - up to 1/8, Box2Color - up to 2/8, Box3Color - up to 3/8, Box4Color - up to 4/8, Box5Color - up to 5/8, Box6Color - up to 6/8, Box7Color - up to 7/8, Box8Color - up to 8/8 of the maximum accumulation in the view area.