OPEN-SOURCE SCRIPT
Aggiornato Value-Distribution Oscillator
Value-Distribution Oscillator
Overview
A volume-by-price value map expressed as a bounded pane oscillator. It rolls a decaying volume distribution of recent trade, finds the Point of Control (most-traded price) and the Value Area, then plots where price sits inside that value structure on a fixed −50 / +50 scale: 0 = at the POC (fair value), ±25 = the value-area edges (VAH / VAL), ±50 = stretched beyond the developed range. It is a study of acceptance and location — not a directional signal.
Why these parts are ONE tool (mashup rationale)
A volume profile is an overlay that shows where value is; it can't give you, as a single number, how far price has travelled from value or whether that travel reverts. This chains: a decaying distribution builds the map → a position transform turns price into one bounded location reading → a fade flag fires only when price is stretched into the tails and turning back → a calibration harness tests whether stretched-and-reverting readings actually return toward the POC on your instrument. Remove a part and the chain breaks: a profile is just a picture, the transform alone is just a number, the fade alone is an untested claim.
How it works
Each confirmed bar's volume is distributed across a price grid (body weighted heavier than wicks) and the whole grid decays geometrically, so the map tracks recent trade and re-anchors when price leaves its range. The POC is the heaviest level; the Value Area grows outward from the POC to the chosen volume share; the transform maps price piecewise-linearly (POC→0, VAH/VAL→±25, extremes→±50). The harness logs each stretched fade and checks a ≥ k×ATR move back toward the POC a fixed horizon later.
How to use
Read location: near 0 = fair value; the ±25 band = the edge of value; beyond ±40 = stretched into the tails, where reversion setups have context and breakouts that hold signal value migration. Then read the Edge row — fades in the tails only earn their keep if they beat the base rate. Context, never a standalone trigger.
Originality
The POC / Value-Area concept is public (credited below); the original work is the assembly — a decaying-grid distribution, the price-into-value position transform that turns a profile into a series, and the forward base-rate calibration. It's the pane-oscillator counterpart to a volume profile, not a re-skin of one.
Concept credit
Market / Volume Profile, Point of Control and Value-Area framing — J. Peter Steidlmayer and the CBOT Market Profile tradition; value-area / acceptance reading developed further by practitioners such as James Dalton. Implementation, transform and harness are this script's own.
Honesty / limitations
The distribution uses bar ranges, not exchange price-by-price prints or tick data — a probabilistic approximation. The grid decays, so it's a recent-trade view, not a session-anchored profile. Edge figures are in-sample, close-to-close, overlapping windows, no costs — descriptive context, not a backtest. Nothing here predicts direction.
Disclaimer
Research / educational only. NOT financial advice; no guarantee of profitability. Indicators describe past behaviour. Trading carries risk of loss. Test out-of-sample. The author accepts no liability.
Overview
A volume-by-price value map expressed as a bounded pane oscillator. It rolls a decaying volume distribution of recent trade, finds the Point of Control (most-traded price) and the Value Area, then plots where price sits inside that value structure on a fixed −50 / +50 scale: 0 = at the POC (fair value), ±25 = the value-area edges (VAH / VAL), ±50 = stretched beyond the developed range. It is a study of acceptance and location — not a directional signal.
Why these parts are ONE tool (mashup rationale)
A volume profile is an overlay that shows where value is; it can't give you, as a single number, how far price has travelled from value or whether that travel reverts. This chains: a decaying distribution builds the map → a position transform turns price into one bounded location reading → a fade flag fires only when price is stretched into the tails and turning back → a calibration harness tests whether stretched-and-reverting readings actually return toward the POC on your instrument. Remove a part and the chain breaks: a profile is just a picture, the transform alone is just a number, the fade alone is an untested claim.
How it works
Each confirmed bar's volume is distributed across a price grid (body weighted heavier than wicks) and the whole grid decays geometrically, so the map tracks recent trade and re-anchors when price leaves its range. The POC is the heaviest level; the Value Area grows outward from the POC to the chosen volume share; the transform maps price piecewise-linearly (POC→0, VAH/VAL→±25, extremes→±50). The harness logs each stretched fade and checks a ≥ k×ATR move back toward the POC a fixed horizon later.
How to use
Read location: near 0 = fair value; the ±25 band = the edge of value; beyond ±40 = stretched into the tails, where reversion setups have context and breakouts that hold signal value migration. Then read the Edge row — fades in the tails only earn their keep if they beat the base rate. Context, never a standalone trigger.
Originality
The POC / Value-Area concept is public (credited below); the original work is the assembly — a decaying-grid distribution, the price-into-value position transform that turns a profile into a series, and the forward base-rate calibration. It's the pane-oscillator counterpart to a volume profile, not a re-skin of one.
Concept credit
Market / Volume Profile, Point of Control and Value-Area framing — J. Peter Steidlmayer and the CBOT Market Profile tradition; value-area / acceptance reading developed further by practitioners such as James Dalton. Implementation, transform and harness are this script's own.
Honesty / limitations
The distribution uses bar ranges, not exchange price-by-price prints or tick data — a probabilistic approximation. The grid decays, so it's a recent-trade view, not a session-anchored profile. Edge figures are in-sample, close-to-close, overlapping windows, no costs — descriptive context, not a backtest. Nothing here predicts direction.
Disclaimer
Research / educational only. NOT financial advice; no guarantee of profitability. Indicators describe past behaviour. Trading carries risk of loss. Test out-of-sample. The author accepts no liability.
Note di rilascio
Value-Distribution OscillatorWhat it is. An oscillator built from where volume has actually traded — the developing point of control and value area — measuring how stretched price is from accepted value.
What's new in this update
Structure reads. The script now identifies the nearest high-volume node (an acceptance/magnet level) and the nearest low-volume node (a thin "void" that price tends to travel through quickly), relative to current price.
Profile shape classification. The distribution is labelled by shape (bottom-heavy, top-heavy, or balanced), a compact read on whether the auction looks like accumulation, distribution, or balance.
Calibration honesty layer. Event-sampling, a streak-dependence check, and a confidence floor on the measured edge are added to the forward-test, as in the rest of the suite.
How the parts work together. The oscillator tells you how far price is from value; the node and shape reads tell you what's around it — whether the next level is a magnet to lean on or a void to expect acceleration through. Used together they turn a single distance reading into a contextual one.
Reusable outputs. Nearest high/low-volume node, profile shape, the oscillator and its calibration edge are published to the Data Window for cross-script use.
Defaults & sources. Price and volume sources are configurable; bins, windows and thresholds are NIFTY-tuned.
Educational only — value area and node reads are descriptive, not predictive. Not financial advice.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.