Best Indicator for Volume Profile

• Some users express a general sentiment that volume can be a lagging indicator and may not be as useful for trading decisions.

market profile indicator

• A market profile indicator is recommended by a user for showing monthly sessions without regard for tick volume.
• Another user offers to help in developing an indicator that tracks dollar value bars instead of volume bars, indicating it could show significant levels based on the amount of money involved.

dollar volume indicator

• The dollar volume indicator could display the total money going into a stock for each candle, providing a different perspective compared to regular volume.
• An example script is shared for calculating the price/volume ratio and plotting it as a histogram with customizable line thickness.
• There is interest and support from users, with some offering to help develop the indicator for free and others praising the idea.

Pros and Cons

market profile indicator

• Pros:
  • Useful for showing monthly sessions.
  • Can provide valuable insights for traders.
• Cons:
  • May not offer the same depth of information as a dollar volume indicator.

dollar volume indicator

• Pros:
  • Offers a different view by focusing on dollar value bars.
  • Provides insights into significant levels based on money flow.
• Cons:
  • May have minimal impact on the traditional volume profile, according to some users.
  • High values may require detachment to a new window for better visualization.

Overall, the dollar volume indicator seems to garner interest for its unique approach in representing trading activity based on financial value, potentially enhancing the understanding of market dynamics for traders.