The vPOC or volume point of control shows where most of the volume was traded. This is important because this is where the institutions and market makers have opened their positions, and these are the ones that move the markets!
This indicator is designed to cut through the volume noise, and enable the hiding of lower volume data. The main setting allows you to define a lookback, and obscure the candles whose volume is less than x % of the highest volume in this lookback.
Of the remaining candles, their vPOC will be displayed. There are extra settings to extend naked vPOCs, as well as the highs and lows of these high volume candles, plus an EMA based on the vPOC price levels.
I must credit quantifytools @quantifytools who allowed me to utilize his code, for finding vPOCs using lower timeframe candles - there are comments in the code also. It works perfectly so why reinvent the wheel?
Thank you for the code, I only have a question. Why are the vPOC locations completely different on any TF? on the same Ticker... So whats the correct TF then? Because you are creating noise in this way. You write "The vPOC or volume point of control shows where most of the volume was traded" That's completely correct. In a Volume Cluster of that moment, regardless of a TF. In your indicator are those moments different on any TF..... please give us a explanation in how to approach this indicator. Again, great indicator!
Texmoonbeam
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@Mupsje, this is because of the timeframe settings in the indicator. You have to understand how the code is getting the volumes, by using lower timeframe candles. There is a maximum lookback of I think 10,000 candles. So if you want the highest accuracy, you set the timeframe setting to 1 minute, but on a daily chart, where 1 daily candle has 1440 minutes, you'd only be able to get 7 days of vPOCs. 10,000 / 1440. If you increase the timeframe setting to say 5 minutes, you could go back 35 days, but accuracy is worse. Basically, try to use the 1 min setting, unless it doesn't go back far enough. Increase to 3 min, 5 min, etc.
Mupsje
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@Texmoonbeam, okidoki, gonna try that. Thanks for the explanation.
Mupsje
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@Texmoonbeam, I did test it on the 5/3/1 Minute TF, I completely understand now the logic of this code. Thanks again for this great approach.
Texmoonbeam
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@Mupsje, no problem man! Its good to understand how things work. I can't take the credit - the vpoc code is from @quantifytools make sure you check their stuff too :)
@Mupsje, what you did here is incredible and exactly what I am looking for. I have tried and tried but can't seem to duplicate this, can you please help with some of your settings. Thank you for any help in advance.
Mark28847
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@Mupsje, I am using a one minute chart and trying to find the point of control for each candle. I am not sure that is possible but thought I would ask.
Mark28847
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Texmoonbeam all your indicators and hard work on them is so incredibly appreciated. Thank you so much for sharing!!!
Why are the vPOC locations completely different on any TF? on the same Ticker...
So whats the correct TF then?
Because you are creating noise in this way.
You write "The vPOC or volume point of control shows where most of the volume was traded"
That's completely correct.
In a Volume Cluster of that moment, regardless of a TF.
In your indicator are those moments different on any TF.....
please give us a explanation in how to approach this indicator.
Again, great indicator!