Value Area 70 Percentage Zone

This indicator calculates and visualizes the price range containing the top 70% (Configurable) of the traded volume for the previous selected timeframe, using a flexible binning approach.

This allows the trader to clearly see between what price range the majority of volume traded, this aligns very well with support and resistance levels as well, making both intraday trading between the highs and lows

and to detect breakout zones possible, especially on the larger timeframes.

The trader can select different timeframes for the calculation to be done.

Example:

Trader wants to visualize where 10% of the total volume for a timeframe traded.

Set the Percentage Volume input to 10.0.

Value area now shows where 10% of the volume traded. A narrow band indicates a high concentration or price cluster around that range.

A larger value range could indicate no support or resistance around that are.

Example: 

Reference timeframe: 1 hour.

This will calculate the range where 70% (Configurable) of the volume traded in the previous hour.

Trader can use any timeframe to view the chart (Below the reference timeframe ideally).

i.e. if the Trader is using 15m candle timeframe, there will be a value box across 4 candles.

i.e. if the Trader is using 1m candle timeframe, there will be a value box across 60 candles.

Full periods are used for the calculation.

This means if the current time is 2:30 PM, the calculation range will be 1 PM to 2 PM

On every new timeframe period the visual object will automatically update.

Inputs:

Percentage Volume: The top x amount of percentage to calculate and visualize. 

Number of price bins: Defines how many price levels (bins) the previous day's range is divided into for volume distribution analysis.

Upper horizontal line color: Sets the line color for the upper price value of the 70% (Configurable) volume area.

Lower horizontal line color: Sets the line color for the lower price value of the 70% (Configurable) volume area.

Value Area Color: Sets the fill color of the highlighted area where 70% (Configurable) of the previous timeframe volume occurred. (2 Colors, 1 for Fill area and 1 for Fill area outline)

Reference timeframe: The timeframe for the volume area to be calculated (explained in the above example).

Updates will be coming in the future and included in the original license. 

- Updates will include opacity for the fill area

- Multi period value areas