Volume Profile Chart Definition : MarketDelta
There are various preferences in MarkeDelta for plotting the Volume Profile chart. You can have the volume-based value area TPOs plotted in one colour or have the TPOs plotted based on the Volume density on each price. In the end, it boils down to individual choice. The basic structure remains almost same till you are not changing the value area calculation percentage and the calculation method.
Before you get confused, let us clarify that in the previous post we had shown how to plot the Market Profile TPO chart, where the Value area is calculated on the basis of price of TPOs and in this the TPOs aggregate the same way but the Value area is plotted on the basis of volume generated at each price. Many people prefer to see the Value Area based on Volume as the Volume measures the strength of the success or failure of the auction. Though, we always prefer to see the Value Area as per the Market Profile TPO chart as the volume generated may not have the same distribution as Time and Time as a component is important for the structure.
Here is one example of the Volume Profile Chart.
- Download the Chart definition from HERE and then open it in Notepad or any word application.
- Press Ctrl + A to select the entire contents of the notepad.
- Go to MarketDelta and Press ALT + F followed by O followed by D and you can now see the chart as posted with the link
- Another way is to save the .txt file on desktop or any location on your hard drive and press Alt + 2 in MarketDelta & select the chart definition from the location where you saved it & you will be able to see the chart as posted with the link
In the chart above, The Blue bracket is the to the right of the Profile represents the Volume based Value Area and the Green bracket to the left of the Value Area represent the Initial Balance – 1-hour range. The Dark Grey vertical bars to the right of each profile is the Volume generated at each price throughout the day. On a conventional chart we see what volume is generated in each bar depending on the timeframe we choose but here we look at the volume generated at the price, irrespective of the time of the day.
If you require any other chart definition, please comment in the comment section below and we will try to post the same.