BornInvestor Advanced Volume Profile

Advanced Volume Profile Indicator Guide
Track extraordinary volume events with precision color coding and dynamic thresholds

🔍 Core Features Overview
Multi-tiered volume analysis

Dynamic threshold system (absolute or relative)

Historical volume records detection

Professional volume formatting (K/M abbreviations)

Smart alert system for critical volume events

🎨 Visual Features Breakdown
Volume Bar Coloring System (Priority Order):
Priority Condition Color Meaning
1 Volume = All-Time High Purple Historic volume milestone
2 Volume = 252-Day High Yellow Annual volume record
3 Volume > Upper Threshold Orange Extreme volume activity
4 Volume > Lower Threshold Blue High volume activity
5 Volume < Relative Threshold Fuchsia Unusually low volume
6 Up Day Green Bullish volume
7 Down Day Red Bearish volume
Supporting Visual Elements:
Gray Line: 20-period volume moving average

Blue/Orange Lines: Absolute volume thresholds

Fuchsia Line: Low volume threshold (50% of average default)

Y-axis: Volume displayed in K/M format (e.g., 1.5M)

⚙️ Input Parameters Explained
Color Settings:
Volume > 5M - Custom color for lower threshold breaches

Volume > 9M - Custom color for upper threshold breaches

Up/Down Volume - Bullish/bearish volume colors

Record Colors - Customize all-time/252-day high markers

Low Relative Volume - Color for sub-average volume

Threshold Configuration:
Parameter Default Function
First Threshold 5M Lower volume benchmark
Second Threshold 9M Upper volume benchmark
Use Relative Thresholds Off Toggle dynamic thresholds
Relative Multipliers 1.5x/2.0x Volume-to-average ratios
Low Relative Threshold 0.5x Low volume ratio (vs average)
Technical Settings:
MA Length (20): Moving average period

Show MA Volume (On): Toggle moving average visibility

Show Threshold Lines (On): Toggle reference lines

⚡ Alert System
The indicator automatically detects:

All-Time Volume Records

Triggers when volume exceeds historical maximum

Alert message: "Volume set new all-time high"

252-Day Volume Records

Triggers when volume hits annual high

Alert message: "Volume set new 252-day high"

💡 Pro Usage Tips
Catalyst Scanning

Purple/yellow bars immediately identify record-breaking volume days

Combine with earnings calendars for event-driven trading

Threshold Optimization

For large-cap stocks: Use absolute thresholds (5M/9M)

For small/mid-caps: Enable relative thresholds (1.5x/2.0x)

Divergence Spotting

Price highs with fuchsia volume bars = weak momentum

Price drops with blue/orange volume = accumulation signals

Day Trading Signals

Monitor 5-minute charts for threshold breaches

Volume spikes above orange line = potential breakout confirmation

🛠 Technical Implementation
Pine Script v6 compliant

Efficient Calculations:

text
// Persistent all-time high tracking
var float highestEver = 0.0
highestEver := math.max(vol, highestEver)

// Dynamic threshold system
effectiveThreshold = useRelative ? avgVol * relMultiplier : absoluteValue
Optimized Plotting:
Uses format=format.volume for automatic K/M formatting
Implements priority-based color logic for clear visual hierarchy

📈 Recommended Applications
Earnings Season Scanner

Identify unusual pre-earnings volume with fuchsia/purple bars

Breakout Confirmation

Validate breakouts with blue/orange volume bars

Institutional Activity Detection

Spot block trades through 252-day yellow volume markers

Dead Cat Bounce Avoidance

Filter false reversals with low-volume (fuchsia) pullbacks

This professional-grade volume indicator transforms raw volume data into actionable trading signals through its sophisticated color-coding system and dynamic threshold technology. Perfect for catalyst-driven traders seeking volume confirmation for price movements!