Volume Profile

Understanding Volume Profile

RESERVED SPACE

Using Volume Profile

Volume Profile can be turned on/off from the Format Instruments window:

1. Open the Format Instruments window.
   
   
   To open the Format Instruments window, click the Format Instruments icon on the main toolbar;
   if the Format Objects window appears, select the symbol and click the Format button.
   
   The Format Instruments window can also be opened by one of the following methods:
     - Position the mouse pointer over the symbol's data series; double-click once the Pointer changes into a Hand ;
     - Position the mouse pointer over the symbol's data series; once the Pointer changes into a Hand right-click and then click Format Symbol Name;
     - Right-click on an empty area of the chart and then click Format Instruments; if the Format Objects window appears, select the symbol and click the Format button;
     - Select Format in the main menu and click Instrument; if the Format Objects window appears, select the symbol and click the Format button.
   
   
2. Select the Volume Profile tab.
3. Check the Show Volume Profile box to turn it on/off. Unchecked by default.
4. Select one of the available Profiles:
   • Tick Count
   • Total Volume
   • Buy x Sell Volume
   • Delta
   • Buy vs Sell Volume
5. Select Breakdown by:
   • Ask Traded vs Bid Traded method:
     • If the current tick price is higher than the previous tick price, the volume of the current tick goes to BUY volume.
     • If the current tick price is lower than the previous tick price, the volume of the current tick goes to SELL volume.
     • If the current tick price is the same as the previous tick price, the volume is recorded either to BUY or to SELL volume depending on what was the last recorded volume.
       
       Example: If a new tick comes with higher than previous price and volume is recorded as BUY volume, and then another tick comes with the same as previous price, the volume is recorded also to BUY volume.
     • If a tick is first one in the series, its volume goes to BUY volume.

   Note: When you plot Volume Delta chart, take into account that it doesn't matter what resolution is selected, additionally MultiCharts will request historical tick ask and bid data from your data source for the specified in chart settings data range, if Ask Traded vs Bid Traded is selected.

   Important information: The logic described above is for data collected in real-time. The following logic is used for historical plots. Example: Assume there are 3 historical trades, 9 historical bid quotes and 12 historical ask quotes. All of them have the same timestamp. To find out which historical asks and bids were used to generate the trades, they are all divided into 3 equal parts (because there are 3 trades). the first “batch” there are 3 asks, 1 trade and 4 bids. The most recent ask/bid matching the trade price is considered to be the price where the trade was made. If ask price is considered for the fill, then the trade’s volume goes to BUY volume. If bid is considered for the fill, then the trade’s volume goes to SELL volume..

   • Up Ticks vs Down Ticks method:
     • If the current tick price is higher or equals current ASK tick price, the volume of the current tick goes to BUY volume.
     • If the current tick price is lower or equals current BID tick price, the volume of the current tick goes to SELL volume.
     • If the current tick price is between ASK and BID prices, than the volume is recorded either to BUY or to SELL volume depending on what was the last recorded volume.
       
       Example: If a new tick comes with a price higher or equals current ASK tick price and its volume is recorded as BUY volume, and then another tick comes with a price that is between ASK and BID prices, the volume is recorded also to BUY volume.

   Note: When you plot Volume Delta chart, take into account that it doesn't matter what resolution is selected, additionally MultiCharts will request historical tick trade data from your data source for the specified in chart settings data range, if Up Ticks vs Down Ticks is selected.

6. Adjust Ticks per Row value (by default is set to 1) to change the the amount of minimum price increments (set in QuoteManager by Price Scale and Min. Movement covered by each line of Volume Profile.
7. Select 1 of 3 available Time parameters for the Volume Profile to be shown:
   • If Last option is selected, it shows Volume Profile for a specified:
     • Number of last Bars;
     • Number of last Sessions.
       Note: In comparison to Every, the starting point for Last is the current/latest bar on chart. Volume profile will not cover a period more than the specified Data Range in chart settings.
   • If Every option is selected, it shows Volume Profile for a specified:
     • Number of every Bars;
     • Number of every Sessions.
       Note: In comparison to Last, the starting point for Every is the first bar on chart. Volume profile will not cover a period more than the specified Data Range in chart settings.
   • If Start ... End ... option is selected, it shows Volume Profile for a specified period of time according to your regional settings.
     Example: Show volume Profile from dd/mm/yy hh:mm:ss to dd/mm/yy hh:mm:ss.
8. There are 2 available Aligments:
   • To show Volume Profile from the Right;
   • To show Volume Profile from the Left.
9. It is possible to adjust the Transparency of the Volume Profile.
   Note: Though the Volume Profile transparency can be set to 100%, one can see the bars of plotted chart symbol. This is because be default Volume Profile is shown in the background and the data series is on the foreground.
10. It is possible to adjust the Width of the Volume Profile.
11. It is possible to adjust the Value Area of the Volume Profile.