Market Profile Osw MT5
- Indicators
-
William Oswaldo Mayorga Urduy
MQL4 and MQL5 trader and developer since February 2019, delivering projects in under one day and providing post-delivery technical support.
Optimized code, advanced logic, and high-quality code. - Version: 1.0
- Activations: 5
User Manual: Market Profile Osw
Market Profile Osw is an advanced auction analysis tool that allows you to visualize volume and price distribution over a specific period. Unlike conventional candlestick charts, this system reveals where the most trading activity occurred, identifying psychological support and resistance zones based on real market participation.
1. Parameters Guide (Inputs Menu)
General Settings
Show Market Profile: Enables or disables the profile visualization on the chart.
Volume Type: Choose between measuring activity by price variation counts (Tick) or by actual traded volume (available on specific brokers and assets).
Look Back Bars: Defines how many candles back the indicator will use to build the current profile.
Profile Right Side: Determines if the profile is drawn next to the price axis (right) or at the start of the analyzed period (left).
Seconds Refresh: Wait time for the indicator to update data and redraw the profile.
Aesthetics and Colors
Market Profile Lines Color: Color for general trading zones with lower relevance.
70% Value Area Algorithm Lines Color: Color highlighting the Value Area, where 70% of the trading activity is concentrated.
High Volume Nodes Lines Color: Color to highlight significant volume peaks that act as price magnets.
Market Profile Lines Transparency: Opacity level of the profile bars (0 for invisible, 255 for solid).
POC Color: Color of the Point of Control line (the most traded price level).
POC Transparency: Specific opacity level for the Point of Control line.
2. Visual Interpretation
When applying the indicator, you will see a structure of horizontal bars of different colors:
Point of Control (POC): Represented by a distinctive line labeled "POC". It is the exact price level where the highest volume was executed. It acts as a magnet; price tends to return to this level in sideways markets.
Value Area (VA): The highlighted zone (usually the central 70%). If the price is within this area, the market is in equilibrium. If it moves out, it is considered to be starting a trend or searching for new value.
High Volume Nodes (HVN): Long peaks in the profile representing very strong support or resistance levels.
Low Volume Nodes (LVN): Gaps or thin zones where price usually moves very quickly (rejection zones).
3. Operating Guide
Reversal Scenario (Range)
When the price approaches the POC or the boundaries of the Value Area and the profile has a symmetrical "bell" shape, look for counter-trend entries at the extremes, expecting price to return to the profile center.
Breakout Scenario (Trend)
If the price strongly breaks the upper or lower boundary of the Value Area and begins to accept new prices outside of it, it is considered a trend continuation signal. The profile will begin to lengthen and create a new POC in the direction of the breakout.
4. Optimization and Recommendations
Recommended Timeframes: Works exceptionally well on M30 and H1 for intraday, as it shows value evolution during the session. On H4 and Daily, it is useful for identifying macro support and resistance levels.
Ideal Assets: Recommended for use on high-liquidity assets, such as major Forex pairs (EURUSD, GBPUSD), stock indices, and commodities (Gold, Oil), where auction volume is more representative.
Market Context: Avoid relying solely on the POC during high-impact macroeconomic news, as volatility can quickly invalidate previous equilibrium levels.
