Skip to Main Content

11/22/2023 |

New Indicator Alert! Per-Session Volume By Price

Hello, traders, and welcome to another software update from your friends here at TrendSpider! We’re pleased to announce the release of a widely requested indicator; The all-new Per-Session Volume By Price. Details after the jump!

This is the header image of the per session volume by price blog.

The Per-Session Volume By Price indicator is a crucial tool in technical analysis, particularly for traders who focus on intraday trading or short-term market movements. It provides a graphical representation of how volume is distributed at different price levels over a specific trading session. Let’s dig into how to add it to your charts, what it shows us, and how it can be used!

Adding Per-Session VbP To Your Chart

The Per-Session Volume By Price indicator is a custom indicator that can be added to your charts simply by subscribing to it via this link. When you click the link, a new browser tab will open and you’ll see the below image. Click ‘Login & Import’.

This image highlights the login and import button.

After clicking ‘Login & Import’, you’ll be shown the below image. Here, click the ‘Subscribe’ button in the bottom right-hand corner.

Once subscribed, you can load the indicator onto your charts via the ‘Indicators’ button. Just type in ‘Per Session’ in the search bar and select ‘Apply’.

For traders who are interested in further altering the code, the Per Session Volume By Price indicator can also be loaded into the Custom Scripting manager and edited.

Indicator Components

The Per-Session Volume By Price indicator contains three distinct components; The horizontal volume bars, the Point Of Control, and the Value Area High and Low.

  • Point of Control (POC): This is the price level within the session with the highest traded volume. It’s considered a pivotal point, as it represents the price at which the most amount of trading activity (or agreement between buyers and sellers) occurred.
  • Value Area High (VAH): This marks the upper boundary of the range where at least 70% of the session’s trading volume occurred. It’s viewed as a potential resistance level.
  • Value Area Low (VAL): This is the lower boundary of the same range and is considered a potential support level.

What Is The Purpose of Per-Session VbP?

Traders can use the Per-Session VbP indicator in any number of ways, but some of the most common include:

  • Market Sentiment Analysis: It helps in gauging market sentiment by showing the prices at which traders are most and least interested in
  • Price Movement Prediction: By understanding volume distribution, traders can predict potential price movements
  • Identifying Key Trading Levels: It highlights significant price levels that can act as support or resistance
  • Trade Entry and Exit Points: Traders use it to determine potential entry and exit points based on the volume profile

Use Cases

Now that we understand what the Per-Session VbP indicator is showing us, let’s review some different chart setups that explain different ways the indicator can be used.

Identify Trend Strength With PoC: If the PoC is not moving in the direction of the trend, or has variance relative to the current trend, it may suggest weakening momentum. Conversely, if the PoC is moving in lockstep with the trend, it can indicate strong trend strength.

Gauging Momentum With VAH/VAL: If the price is trading above the VAH, it can indicate strong bullish momentum. If the price is trading below the VAL, it can indicate strong bearish momentum.

Identify Reversals With Volume Skew: A session where the volume profile is significantly skewed away from the POC might indicate a potential market reversal.

VAH/VAL Breakout Confirmation: A breakout from the value area with significant volume can serve as a confirmation of the breakout’s strength and sustainability.

Range Trading: In a ranging market, traders might buy at the VAL and sell at the VAH, considering these as temporary support and resistance levels.

Stop Loss and Take Profit: The PoC, VAH, and VAL can be used to set strategic stop-loss and take-profit levels, improving risk management.

Summary

In summary, the Per-Session Volume By Price indicator is a dynamic and versatile tool for traders, providing insights into market dynamics, key price levels, and potential trading strategies based on volume distribution within a particular session.

To learn more about how to utilize Volume By Price in your trading, take some time to review this video!

The Secrets Of Reading Volume Profile
The secrets of reading volume profile

As always, we hope you find this new indicator helpful! If you have any questions about it, feel free to reach out to us via the ‘Contact Us’ button in the bottom right-hand corner of your chart view.