Quantum Volume Point of Control (VPOC) Indicator for MT4
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Most technical indicators uncover and exploit the patterns worth etch on the charts and make assumptions, ideas, and predictions of the subsequent worth motion. However as you may see clearly, worth is simply half the story. The measure of exercise behind worth motion is vital. As a pure technical evaluation instrument, Quantum Volume Point of Control (VPOC) indicator is mathematical proof that quantity is a vital consider figuring out worth motion.
The Quantum VPOC indicator has been developed to increase the 2 dimensional research of quantity and worth, to a 3 dimensional one which embraces time. The quantity/worth/time relationship then supplies actual perception to the internal workings of the market and the heartbeat of sentiment and danger which drives the value motion accordingly.
One of the largest issues all of us face as merchants is to really reveal market sentiment and to achieve a way of the burden of market opinion within the context of worth. Most technical indicators uncover and exploit the value patterns on the charts and make assumptions, ideas, and predictions of the subsequent worth motion accordingly. In different phrases the value time relationship on the x axis of the chart.
However, worth is simply half the story. The measure of exercise behind worth motion is vital. It is the crescendo and diminuendo of ‘market noise’ which holds the important thing. In different phrases – quantity.
For the merchants of the previous, tape studying was all that they had, studying quantity and worth because the ticker tape punched out the final worth and related quantity, a robust strategy we nonetheless use immediately with the Quantum tick volumes indicator.
But now, with the Quantum VPOC (quantity level of management) indicator now we have taken the evaluation of quantity and worth to the next stage, which each enhances and expands the VPA relationship. Whilst the Quantum tick volumes indicator considers the connection between a single quantity bar and its related candle on the value time x-axis or teams of candles and quantity bars, the Quantum VPOC indicator analyses the density and depth of quantity over time in opposition to worth. In different phrases the quantity worth relationship on the y axis. It does this in three distinct methods as follows:
First, the Quantum VPOC indicator constructs the Volume Profile from a set quantity of bars in historical past to essentially the most present bar. The Volume Profile is then offered as a vertical histogram proven on the proper edge of the chart – a stack of horizontal bars of various lengths, however of equal top representing the quantity of exercise at every worth stage.
Second, the Quantum VPOC analyzes the Volume Profile to seek out the important thing worth ranges the place exercise is powerful and rising, or weak and falling. In different phrases, the indicator seems for peaks (lengthy bars) of the Volume Profile the place worth tends to be attracted as these are areas the place worth was beforehand accepted. These are referred to as High Volume Nodes (HVN). The indicator additionally seems for troughs or valleys (quick bars) of the Volume Profile the place worth tends to be repelled as these are areas the place worth was beforehand rejected. These are known as Low Volume Nodes (LVN). Both varieties of worth stage act as exact zones of assist and resistance and as such are projected throughout the chart throughout the given interval.
Third, the Quantum VPOC indicator seems for the Highest Volume Node or the very best peak within the Volume Profile and marks it because the Volume Point of Control – the value stage which acts because the fulcrum from which worth pivots. The indicator completes its calculations and updates as every new quantity bar is delivered.
The result’s a chart revealing the overarching affect of quantity at worth, coupled with time.
The Quantum VPOC indicator shows a number of key items of info on the chart as follows:
Volume Profile – this seems as a histogram of quantity on the vertical worth axis on the fitting hand facet of the chart. The peaks and troughs are clearly displayed highlighting each High and Low Volume nodes.
High quantity node (HVN) – that is the place now we have a bulge within the quantity profile usually consequently of an prolonged part of worth congestion. As a end result, because the market approaches these areas on the chart worth motion is prone to change into waterlogged with additional congestion doubtless with the node appearing as a robust space of assist or resistance. As now we have seen a robust acceptance of worth at this stage prior to now, that is prone to be repeated with the market swinging in a spread. Ultimately the market might reverse off these ranges, with any transfer by means of then confirming the present sentiment.
Low quantity node (LVN) – that is the place we see low quantity within the quantity profile. In these areas, the market has solely paused briefly – in different phrases a area the place worth has been rejected prior to now. As such we’re prone to see the market transfer rapidly by means of these areas with little in the best way of resistance or assist appearing to stop an extra advance of decline in worth. The present sentiment is prone to proceed and construct rapidly by means of these ranges.
Support and Resistance Zones – these are drawn on the High and Low Volume nodes to spotlight the varied HVN and LVN ranges on the value axis.
Volume Point of Control Line – that is drawn as a single line on the very best quantity of the High Volume Node within the timeframe and clearly defines the tipping level of sentiment. This strikes dynamically and represents the fulcrum of market sentiment.