POC and volume

[lucacrebbe]

in this chart where is the POC? The point with maximum price exchange? at 2.68?
I have questions:

https://i.ibb.co/gWCkShH/lincquestion.png
1) why doesn't this POC follow a normal distribution? The point where most volumes traded is shifted upward

2) What do the red colored areas of the side volume indicator bars (right to side) indicate? Do the sellers indicate? But I know that for every seller there is a buyer ... so why in some cases and at some prices does the purchase volume exceed that of the sale? (look for example at the bar at 2.68 $ ... it's all volume in purchase ... on sale there is nothing .... but then who did they buy those who had orders at 2.68 $ from?

This is not the volume actually traded but are they only sell or buy orders?

3) what are the most discolored extreme areas on the right and left? Are there areas where there are fewer buy or sell orders?

4) how do you think the price will behave? will it fluctuate between the two points where the price has been beaten the most by using them as support and resistance?
To have a breac out of those points ... what should happen? what other indicator could help identify a resistance breac out?

 

[Enivid]

It is easy to answer your questions by looking at the indicator's properties:

I have different colors here, but the idea is the same.

in this chart where is the POC? The point with maximum price exchange? at 2.68?

Yes. On your chart it is the huge purple line. It is the huge red line on my chart.

1) why doesn't this POC follow a normal distribution? The point where most volumes traded is shifted upward

Why should it? The POC is where the price where the most ticks occur in the given range (the on-screen visible bars in case of VPVR).

2) What do the red colored areas of the side volume indicator bars (right to side) indicate? Do the sellers indicate? But I know that for every seller there is a buyer ... so why in some cases and at some prices does the purchase volume exceed that of the sale? (look for example at the bar at 2.68 $ ... it's all volume in purchase ... on sale there is nothing .... but then who did they buy those who had orders at 2.68 $ from?

This is not the volume actually traded but are they only sell or buy orders?

Those are just volumes from the bullish or bearish colored candles. For example, if you have a bullish candle, its volume will be represented by green dots in the VP; if it is a bearish candle, its volume gets colored red for the VP.

3) what are the most discolored extreme areas on the right and left? Are there areas where there are fewer buy or sell orders?

The areas that are brightly colored are inside the Value Area of the profile. The areas outside the Value Area are discolored.

4) how do you think the price will behave? will it fluctuate between the two points where the price has been beaten the most by using them as support and resistance?

This depends on whether this VP provides any meaningful information. However, normal session-based VP produce strong areas of support and resistance for the levels where VP peaks are.

 

[JanPatterson]

Nice answers here, thanks.