The VPOC – volume point of control now on NinjaTrader

The Quantum VPOC indicator has been developed to expand the two dimensional study of volume and price, to a three dimensional one which embraces time. The volume/price/time relationship then provides real insight to the inner workings of the market and the heartbeat of sentiment and risk which drives the price action accordingly.

The VPOC indicator for NinjaTrader displays the transacted volume at the various price levels vertically on the right hand side of the chart, showing instantly those regions where volume is most intense, as well as those where volume is weak. This then creates the valleys and troughs of the volume profile with what we call High Volume Nodes and Low Volume Nodes.

Typically these are regions where the market has paused and moved into a congestion transaction phase, either for longer periods of time which develop the High Volume Nodes, or for shorter periods which then build the Low Volume Nodes. The VPOC indicator for NinjaTrader is constantly monitoring these regions, and displaying the associated volume profile, and then paints a volume point of control to indicate current sentiment. The VPOC is always generated on the deepest volume of a high volume node.

This level then moves dynamically as the volume of transactions build, and can be thought of as the fulcrum of price agreement, based on the associated volume.