DVP typically based on price and information and it combines these factors in a way that displays price, and time frame on a single chart dynamically. You can gather a multitude of information with a glance.
The first thing that most traders will use dynamic for is identifying basic levels. It is important to note that using Dynamic as an identifier for levels is a reactive method.
Point of Control ( ): It refers to the area in the chart with the most traded activity. This is by far the most relevant area you want to monitor as it can help to define the placement of your stops or the areas in the chart where you might find the most pristine entry levels. The highest concentrated area of for a particular period of time we will call it or Point of Control and you will be surprised how many times it acts as a wall on a retest. Traders tend to factor this in as an area of support or resistance.
Value Area ( ): The range of price levels in which a specified percentage of all was traded. By default, the industry standards tends to be 70%.
Value Area High ( VAH ) – The highest price level within the value area.
Value Area Low ( VAL ) – The lowest price level within the value area.
The script creates up to 60 channels according to highest/lowest levels for specified time period and finds the total for each channel. Then it calculates Point of Control, Value area and VAH / VAL . the script shows channel and Value Area, and you can see VAH / VAL ve all channels optionally.
In this version, number of channels can be changed up to 60 optionally by user
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