p2pasta

High Timeframe POC

Because the big Bitcoin crash I have been looking a lot at high timeframe metrics. I never spent much time learning POC so I decided to create a little script for determining these on higher timeframes.

Currently included: Monthly, 3 months and 6 months.

/* DEFINITION */
Point Of Control (= POC) is a price level at which the heaviest volumes were traded.
Value Area High/Low (=VAH/VAL) is a range of prices where the majority of trading volume took place. Naturally, Value Area High being the top price level and Value Area Low being the lowest. POC always is between the two.

/* HOW TO TRADE WITH THIS INDICATOR */
The basis for POC is determining bias on whichever timeframe you choose.

1. Identify a POC on the timeframe of your choosing.
/* If you choose a "low" timeframe (monthly here) then make sure to look at the higher timeframes to see how it is playing against a higher timeframe POC.
2. When the price is moving away from the POC (either to the upside or downside) this will confirm or invalidate the trade.
3. You can now enter the trade on bias or wait for a retest of the same POC.

/* EXAMPLE TRADES /*
Here is a screenshot of some of the trades that are possible solely using the POC and some common sense.

https://s3.tradingview.com/snapshots/s/s...
Release Notes: Fixed: Text labels visible when POC disabled
Release Notes: Added three color inputs (1M, 3M & 6M) to change the POC, VA and label colors visible on the chart.
Release Notes: Updated the code so that the screenshot of the indicator above was showing the monthly POC properly
Release Notes: Added an input to only calculate from a number of months back
~ default value = 6 (minimal value = 1, maximal value = 12) ~
This is done to fix the overlapping of lines/labels and reduce loading time of the indicator.
Release Notes: Merged the "Value High" and "Value Low" input into one "Enable" input since the option to enable/disable just one of them won't be used in my opinion.
Release Notes: Added comments/structure to the source code for readability/reusability and removed unnecessary code
Release Notes: Added credit
Added user inputs for "Labels" to enable/disable visibility (default=True) and choose the location of the label ('Right', 'Center' or 'Left' on the POC line ~ default = 'Right')
Release Notes: VERSION 1.1

- Added the weekly POC which is labeled by the week number.
Default = true, Weeks back default = 4, Default color = #9C27B0
- Added the custom POC
Default = 6M, Months back default = 12, Default color = #2A2E39
Supports '3M' and '6M' at the moment. Unfortunately, you can't show the 3M and 6M at the same time anymore, I did this for organizing purposes.
If there is need and requests to make sure both can be seen together again I will probably add a 2nd custom POC from which you can choose the second custom timeframe.
To disable the custom POC you need to select 'Disabled' under the options list from the Custom -> Timeframe input.
- Reorganized user input making this indicator solely used around the weekly, monthly and custom POC.
- Merged the 'Enable labels' input into the 'Labels location' input.
Now, you can select 'disable' from the options list to make sure no labels are rendered.
- Differentiated the 'Months back' input/function to work different
(this function handles effiency in rendering making sure to only render from a certain amount of months back).
Before this version, this input applied to all POC's that were being rendered. Now, you can set 'Weeks back' on the weekly POC and 'Months back' on the monthly POC. This results in different use cases i.e only rendering the last 4 weekly POC's but show the last 6 monthly POC's (as seen on the screenshot)
Release Notes: Added the option to enable/disable the 'POC' part from the labels. I wanted to add enabling/disabling this option because displaying the full label is unnecessary if only this indicator is used on a chart. If you are using other indicators to display lines you might consider enabling this option for better overview on which lines the POC's are.
Release Notes: Fixed proper label placement on the custom POC
Release Notes: Added 'readable' input (boolean) under 'Options'. Default is set to false. Enabling this makes sure that the lines are being rendered from the current bar therefore only showing lines where no candle has been.
Release Notes: Default was not set to false (inconsistent with the release notes above)
Release Notes: VERSION 1.2

Added a to-do list
Feel free to suggest functionality and raise issues through the comments or dm
Added label size
Small, normal, large currently supported. Default is set to 'Small'
Fixed label placement issues
I used a certain percentage to display the text above the label but this does not work on every chart.
Now, I place the label on top of the POC to make sure it is always sized properly however this gave another issue; not being able to read the label. The background color of the label is now the same color that is being used for the POC.
Added label text color
To make sure label text can remain visible and customized to your liking.
Added 'current bar' option to 'Labels' input
Many requests stated that there also should be an option for the labels to display next to the current bar so I have added this option as well.
Release Notes: Checked off three items on the to-do list
Release Notes: Fixed label placement if 'readable' mode is turned on (left and center did not work properly)
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Want to use this script on a chart?

Kommentarer

Thank you so much for sharing this code with the trading community p2pasta!! I will include it in my chart and start experimenting with it!! cheers!!
+1 Svara
p2pasta marcosdelsur05
@marcosdelsur05, You are welcome! Let me know if there is anything you are missing :)
+1 Svara
Hello and thanks for this amazing tool, the result of this is not equal to tradingview built-in volumeprofile when i test it with fixed range for a month or week, is there anyway to fix it ?
Svara
How do I fix this to a specific timeframe?
Svara
p2pasta WOLFSTEN
@WOLFSTEN, What do you mean? In the settings you are able to select for which high timeframes the POC will be show. If enabled, you can further customize how it is being shown on your chart. You can also also copy the source code into your own indicator and make some changes to it. DM for further questions.
Svara
Is the point of control using volume that you have applied here always equal to the point of control by price?
Svara
p2pasta kennethsingh
@kennethsingh, Afaik there are two ways to determine a point of control, either by volume or time. So I assume you mean time? If so, the indicator relies on volume where the consensus basically is in favor of using volume over time to determine POC. You can dm me any other questions you have :)
Svara
@p2pasta, hi yes the one by time is basically a frequency plot for the price by counting the times at which the prices occurred in the previous day. I just read the secrets of a pivot boss yesterday and saw this under the money zone topic therefore I was checking if the script you wrote will use the price(and time) based approach so that I can understand this in action. The author has given the code but it is for a paid software.
Svara
p2pasta kennethsingh
@kennethsingh, Not sure what article you are referring to but this indicator calculates based on volume (not time). Calculating by time gives a different result and approach to trading.
Svara