This indicator combines a Linear Regression channel with a dynamic volume profile, providing traders with a powerful tool for visualizing both directional price movement and volume concentration along a trend.
Features
Linear Regression Channel:
- Draws a statistically fitted channel
- Tracks the market trend over a given period
- Divides the channel into horizontal levels
- Calculates the trading volume at each level
- Shows the share of each level in the total volume
- Visualises high/low volume areas
- Colour from yellow (low volume) to red (high volume)
- Quickly identify key areas of interest
- Adjust profile width and resolution
- Channel direction indicator (arrow)
- Customise line style (solid/dashed/dotted)
- Trend Identification:
- Use the Linear Regression Channel to identify direction
- Analyse the slope of the central line
- Volume Analysis:
- Look for levels with maximum volume - key S/R zones
- Pay attention to large bars - zones of institutional interest
- Trading signals:
- Direction arrow helps to determine the trend
- Combine with other indicators (Price Action, RSI, MACD)
LR Volume Profile is a professional tool for:
- Combined trend and volume analysis
- Identifying significant price levels
- Making informed trading decisions
- Identifying accumulation/distribution zones
- Filtering false breakouts
- Finding entry points with volume confirmation
Trend trading:
- Buy on a rebound from the lower border with increasing volume
- Sell on a rebound from the upper border with increasing volume
- Buy at the lower border with low volume
- Sell at the upper border with low volume
- Use directional arrow to confirm trend
- Pay attention to areas with maximum volume
Level breakout:
- Enter when level breaks with low volume
- Stop loss behind the nearest level with high volume
- Enter when level bounces with high volume
- Take profit at the next level
#LR_Volume Profile
