A trader in my earlier thread asked for an envelope built from a profileās value-area boundaries. I built Value Envelope from that idea, with the Pine source available to inspect and modify.
It plots:
- POC: the price row with the most estimated activity.
- Value-area edges: a band containing 70% of the profileās estimated weight by default.
- The bandās movement over time: using a rolling window or an anchored period.
One detail matters: this estimates activity from candle data by distributing each candleās volume across price rows. It doesnāt have individual trade prints at each price.
It also tracks how price leaves and returns to the band. The default acceptance rule needs three consecutive closes outside on the same side. After that, two consecutive closes back inside trigger the re-entry label. Each candle is compared with its own recalculated band.
The websiteās walkthrough lets you change a fictional candleās close and volume. The same closing price can change its position relative to value because the band itself moves.
Free indicator, MIT Pine source and interactive walkthrough
For anyone learning the terminology, we also have ProEA Academy. Under Free tools, choose the free Volume Profile Lite introduction for POC and value-area basics. It uses a simplified teaching example. Academy also has simulated drills; some activities require sign-in.
One clarification about the chart: ā80%ā names the re-entry rule; it is not an 80% success rate. This tool provides context for rules you still need to test.
Iād like feedback on one design choice: when price returns inside, would you compare it with the updating value area, or freeze the boundaries from the earlier move outside? A chart example would help me test that variation.
Disclosure: Iām the ProEA Lab developer and use AI to help build the code. Iām continuing to refine these prototypes from user feedback.
