Quantum Volume Point of Control Indicator
The Quantum VPOC indicator has been developed to expand the two dimensional study of volume and price, to a three dimensional one which embraces time. The volume/price/time relationship then provides real insight to the inner workings of the market and the heartbeat of sentiment and risk which drives the price action accordingly.
The Quantum VPOC indicator displays several key pieces of information on the chart as follows:
- Volume Profile - this appears as a histogram of volume on the vertical price axis on the right hand side of the chart. The peaks and troughs are clearly displayed highlighting both High and Low Volume nodes.
- High volume node (HVN) - this is where we have a bulge in the volume profile generally as a result of an extended phase of price congestion. As a result, as the market approaches these regions on the chart price action is likely to become waterlogged with further congestion likely with the node acting as a strong area of support or resistance. As we have seen a strong acceptance of price at this level in the past, this is likely to be repeated with the market swinging in a range. Ultimately the market may reverse off these levels, with any move through then confirming the current sentiment.
- Low volume node (LVN) - this is where we see low volume in the volume profile. In these regions, the market has only paused temporarily - in other words a region where price has been rejected in the past. As such we are likely to see the market move quickly through these regions with little in the way of resistance or support acting to prevent a further advance of decline in price. The current sentiment is likely to continue and build quickly through these levels.
- Support and Resistance Zones - these are drawn at the High and Low Volume nodes to highlight the various HVN and LVN levels on the price axis.
- Volume Point of Control Line - this is drawn as a single line on the highest volume of the High Volume Node in the timeframe and clearly defines the tipping point of sentiment. This moves dynamically and represents the fulcrum of market sentiment. If it is above the price action, then the current market sentiment is bearish. If it is below the current price action, then the current market sentiment is bullish. The VPOC Line reveals this balance simply, quickly and clearly allowing you to judge market sentiment with accuracy and confidence.
The Quantum VPOC indicator has several unique features all designed to help you see inside the market and to trade with the flow, and not against it.
- The indicator is dynamic which means the output gradually changes as new volume data comes in, so you can be sure that you only get the most relevant signals.
- An advanced feature includes the ability to change the data source’s timeframe which is excellent for multi-timeframe analysis. This gives you the option to see different timeframes quickly and easily with the associated VPOC.
- The two sides of the Volume Profile are colored differently and separated by the Volume Point of Control line for intuitive and quick analysis of the chart. The top side is blue by default and the bottom side is purple by default.
- Two types of support and resistance zones are generated and then colored differently again for speed. High Volume Nodes (HVN) are colored a lighter shade of orange - Low Volume Nodes (LVN) are colored a darker shade of orange.
- The number of Support and Resistance Zones are adjustable with a given recommended range.
- Volume Profile bars can be fine tuned to become narrower or wider.
- The Period (number of bars processed) can be adjusted to your preference.
- The Volume Profile, Support and Resistance Zones, and Volume Point of Control Line can be toggled on and off according to your own preference.
- The colors of the Volume Profile, Support and Resistance Zones, and Volume Point of Control Line can all be customized to your personal preferences.
The Quantum VPOC indicator is dynamic, constantly changing with each incoming tick. It works in all timeframes and provides a powerful and much deeper understanding of support and resistance through the prism of volume and the associated High and Low Volume Nodes, with the Point of Control itself, acting as the fulcrum of the market.