Hey I dont know if this is ok to post here, as i am still new to the forum, but have been reading for a couple months and snagging some of the beautiful indicators on here
I hope this is the right place to post, but i have a potentially powerful idea for an indicator. I Currently am using a volume profile to pick out weak points that price is likely to jump to give the amount of volume in the given areas. the basic premise that if an a price point has alot of trading volume (both directions for extended period of time) we should see a range bound point, with an eventual breakout from that point. (think of wyckoff method) I am currently using previous price points of high volume and low volume to pick out levels i might like to trade on. However, this doesnt work for trending markets! because using a previous weeks price points may neve be touched in an uptrending market. (Just as pivot points and horizontal Support and resistance tend to lose their effectiveness over periods of time compared to price channels or moving averages).
however there might be a solution.
My idea would something similar to pivot points or projection bands, or even price channels (which are essentially just support and resistance projected forward by using two different price points connected together by a set amount of time to determine slope of the straight lines that form price channels), but instead of projecting price, the goal is to project volume (or tick volume specifically) in the same way a price channel or moving average or projection bands are usually calculated. Im not a math guy so maybe someone can help here. perhaps something to do with calculating the range of each candle/# ticks, to essentially give a score. the more price movement per tick, or less ticks needed to move price could be considered an area of low volume or interest. where as net price change over a period of time with alot of tick data, suggests an area of accumulation or distribution in market participants. So i guess what im asking is it possible to create an indicator that will draw either a channel or a sort of dynamic lines, or even areas of projected high or low volume. because again the issue im having with market profiles/volume profiles, is that they take a snapshot of past data and give levels in relation to that price range, but have 0 predictive capability for a trending market. It works great in a sideways market when time seems to kind of stand still, with price just bouncing around a range, but again, not well in trending market. Just like how a support point might be viable today, but as price trends away it isnt, a channel solves this issue by basically connecting points in time to draw a line. Is It possible to have an indicator do the same thing for areas of high or low volume? perhaps using median prices, or whatever the opposite is of median (again im not a math guy, i just have this idea haha), to find low volume and high volume areas in a diagonal market (trending).
I know this prolly sound far out and confusing, hopefully someone has an idea for the calculation, i wish i were smarter in this regard, still learning along the way and new to forex only been at it a couple months. And i am sorry if i posted to wrong place. I just am kind of at a loss here with where to go with this idea. Hopefully someone can help! thanks for all teh great indicators already put out by some of the major contributors and moderators here! Good luck trading all, hope you all have abundance and can pass that on to others! peace.