Auction Profile

About this indicator

A time chart tells you when price was somewhere. A profile tells you how much business was done there, and that is a far better guide to what price does on the way back. Construction notes, because this is where most profiles cut corners: 1. Each bar's volume is distributed across every price row its range covers, weighted by overlap. It is not dumped into the row of the close. On lower resolution data this is the whole accuracy of the profile. 2. The value area is grown outward from the point of control, taking the heavier of the two adjacent rows each step, until it holds your chosen share of volume. The standard construction, not an approximation. 3. High and low volume nodes are flagged against the distribution's own standard deviation. LVNs are where price travels fast, and in my experience they are the more tradeable of the two. Anchor to a rolling window or to each session, and place the profile on either side of the range.

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