Volume Profile + Price Action Strategy (POC-based)

This indicator combines volume dynamics, price action patterns, and a simplified Point of Control (POC) to highlight potential high-probability trade zones.

🔍 Key Features
POC-Based Logic
Plots the POC from the most recent closed 10-minute candle as a horizontal level for intraday structure.

Volume Spike Detection
Highlights unusual activity based on volume compared to the average of the last N candles.

Effort vs. Result Analysis

Based on Wyckoff-inspired logic:

• Absorption: Large volume, small body → possible buyer/seller absorption
  
  
• False Move: Small volume, large body → potential fakeout
  
  
• Price Action Recognition Detects:
  
  
• Inside Bars
  
  
• Pin Bars
  
  
• Engulfing Candles
  

Signal Highlights

🔺 Absorption Signals (below bar, teal triangle)

🔻 False Move Signals (above bar, orange triangle)

🔷 POC Line

⚙️ Customizable Inputs
You can control signal sensitivity with these inputs:

Volume Spike Multiplier
Raise to filter only extreme volume spikes
→ Recommended: 2.0 to 3.0 for cleaner setups

Absorption Body Ratio
Lower to detect only very small bodies (tight candles)
→ Try 0.3 to 0.4 for stricter absorption logic

False Move Body Ratio
Raise to catch only large candles on low volume
→ Use 2.0+ to filter weak moves

🧠 How to Use
Use in confluence with:

• Support/Resistance
  
  
• VWAP or moving averages
  
  
• Session opens/closes
  
  
• Best on 10-minute charts, but adjustable
  

✅ Signal Tuning Tips
Want fewer but cleaner signals?

• Increase Volume Spike Multiplier: 2.5+
  
  
• Decrease Absorption Body Ratio: 0.3
  
  
• Increase False Move Ratio: 2.0+
  

Want more frequent signals?

• Lower Volume Multiplier: 1.2–1.5
  
• Raise Absorption Ratio: 0.6+
  
• Lower False Move Ratio: 1.2–1.4
  

📊 Recommended Timeframe
Optimized for 10-minute charts

Works intraday, especially around session opens and POC re-tests

⚠️ Disclaimer
This script is for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any asset. Past performance is not indicative of future results. Always do your own research and consult a licensed financial advisor before making trading decisions.

Use at your own risk.