Candle Profile

“See inside the candle” with this unique price action indicator.

The Candle Profile indicator constructs a price (or tick volume) profile of the aggregated price action of the instrument, for each candle / bar on the chart. This profiling concept is similar to Market Profile or Volume Profile.

The indicator utilizes a lower-timeframe data stream which is loaded separately to the main chart. For example, for a daily chart (where each candle / bar represents 1 day duration), the Candle Profile can construct a profile using 1min bars (or 5min, 15min, etc.). Obviously, the smaller the timeframe used, the more detailed the profile will be.

The technique allows you to easily see what happened to price action “inside the candle”, without the need to constantly refer to lower-timeframe charts (which can often present too much data to analyse effectively anyway).

One of the key features of the Candle Profile is the ability to draw the profile as a vertical histogram for each candle/bar on the chart. The shape of the profile is important, and the Candle Profile indicator allows you to easily spot areas of high trading activity (High Volume Nodes or HVNs) and low trading activity (Low Volume Nodes or LVNs). The profile graphic automatically scales as the chart is zoomed in / out.

In addition to the profile graphic, the indicator can also draw the Point Of Control (POC) and Value Area. (These are standard concepts within the Market Profile / Volume Profile trading community.) The indicator works on any timeframe. However, please note that there is an upper limit to the amount of data that can be loaded (currently 15000 bars, or 5000 ticks). For example, 15000 bars of 1min data is approximately 10 days; 15000 bars of 5min data is approximately 52 days, etc. This limit only applies to how much data can be loaded when “back-filling” a chart (e.g. when it is added to the chart); the indicator can continue to collect live data beyond that limit.

INPUTS

The following are inputs available in the application:

• Resolution: This is the size of the “statistical bins” which are used to collate the price action data. The value is in pips.
• Period: This is the bar size used to create the profile (e.g. m1, m5, m15, etc.).
• Profiling style: This can be ‘TPO count’ or ‘Tick volume’.
• Initial bars: The “Initial bars” parameter can be used to reduce the amount of lower timeframe data required by the indicator, by only computing profiles for the most recent bars.
• Value Area percentage: The percentage used for Value Area calculation. The default is 70% which is approximately 2 standard deviations of a normal distribution.
• POC style: This can be Off, Dot or Line.
• Value Area style: This can be Off, Dots, Lines or Vertical line.
• Show profile: This can be Off, Centre, Left or Right. The parameter controls the alignment of the profile with respect to the bar/candle. When set to Off no profile is drawn.
• Reverse profile direction: When set to Yes, the profile is drawn facing to the left.
• NPOC style: This can be Off, Fresh or Historic.
• Colouring effect: This can be Plain, Shaded, Faded, Rainbow or Value Area. It is used to set the colouring of the profile graphics.
• Colour: The base colour of the profile.
• POC colour: The colour of the Point Of Control (POC).
• Value Area colour: The colour of the Value Area.
• Value Area High colour: This colour is used for the area above the Value Area.
• Value Area Low colour : This colour is used for the area below the Value Area.
• Outline colour: This is the colour of the outline of the bars for the profile. When this is set to “White”, the outline is not drawn at all.
• Line width: The width used for the POC dot/line and Value Area line.
• Profile width: This value is used to scale the width of the profile. It is a % value. If set to 100%, then the profile will be the same width as a candle.
• Transparency percentage: The transparency of the profile.

Risk Disclaimer

The application displayed on this page does not take in to consideration your individual personal circumstances and trading objectives. Therefore it should not be considered as a personal recommendation or investment advice. Past performance is not indicative of future results. There is no guarantee that the systems, trading techniques, trading methods, and/or indicators will result in profits or not result in losses.

Requirements

This indicator is only compatible with FXCM Trading Station Desktop software. Additionally, an FXCM
account is required (including free FXCM demo accounts).

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