Poc SR Volume

The indicator SR POC VOLUME for MetaTrader 5 is designed to identify, cluster, and visualize Points of Control (POCs) derived from candle data over a configurable lookback period. Its goal is to provide a structured way to recognize areas of support and resistance based on accumulated volume activity and delta distribution, allowing traders to better understand where significant market interest has formed.

Core Functionalities

1. POC Calculation

   • The indicator calculates a POC for each candle within a specified lookback range.

   • The POC is defined as the midpoint between the high and low of the candle.

   • A delta value is also associated with each POC, derived from tick volume and directional bias (positive when close > open, negative otherwise).

   • This delta is scaled to emphasize the directional imbalance of buyers versus sellers.

2. Cluster Formation

   • POCs are grouped into clusters based on a user-defined tolerance expressed as a percentage of price.

   • The tolerance determines how close POCs must be to one another to be considered part of the same cluster.

   • Each cluster aggregates the following data:

     • Minimum and maximum price level covered by the cluster.

     • Total accumulated delta, reflecting whether buyers or sellers dominated.

     • Number of POCs included in the cluster.

     • The most recent time reference for the cluster.

3. Minimum POC Requirement for Clusters

   • Clusters are only validated if they contain a minimum number of POCs, configurable by the user.

   • This prevents isolated or insignificant data points from being highlighted and ensures that only meaningful areas of price concentration are plotted.

4. Support and Resistance Differentiation

   • Clusters with positive total delta (dominance of buyers) are displayed as support zones.

   • Clusters with negative total delta (dominance of sellers) are displayed as resistance zones.

   • Colors for support and resistance areas are fully configurable by the user.

5. Graphical Representation

   • Each cluster is plotted as a rectangle spanning horizontally from its last detected candle over a user-defined number of bars.

   • The rectangle’s vertical range extends slightly above and below the min-max price of the cluster to ensure visual clarity.

   • A text label is displayed near the rectangle showing the relative strength of the cluster.

     • Strength is calculated as the average delta per POC, normalized into a percentage.

     • The label indicates both the percentage strength and whether buyers or sellers dominate.

6. User Parameters
   The indicator provides several configurable inputs to adapt to different market conditions and trading styles:

   • LookbackCandles: Number of candles to process for POC extraction.

   • SourceTimeframe: Timeframe from which POCs are calculated (can differ from chart timeframe).

   • ClusterTolerance: Percentage of price that defines how tightly POCs are grouped.

   • MinPOCsForCluster: Minimum number of POCs required for a cluster to be plotted.

   • SupportColor: Color of rectangles representing buyer-dominant clusters.

   • ResistanceColor: Color of rectangles representing seller-dominant clusters.

   • RectangleWidth: Width of rectangles in terms of bars into the future.

7. Cluster Strength Calculation

   • Cluster strength is based on accumulated delta divided by the number of POCs.

   • The resulting value is normalized and capped at 100%.

   • This provides a quick quantitative reference to assess whether the cluster has significant directional pressure.

8. Object Management

   • All graphical objects created by the indicator are prefixed and managed automatically.

   • On each recalculation, old objects are deleted and replaced with updated plots, ensuring a clean chart display.

   • Objects are non-selectable and plotted in the background to avoid interfering with manual chart operations.

Practical Use in Trading

• Identification of Key Levels
  The indicator highlights areas where price action repeatedly formed POCs within close range. These levels represent strong zones of market interest and can act as potential areas of support or resistance.

• Directional Bias Recognition
  By accumulating delta within clusters, traders can distinguish whether buyers or sellers dominated activity at these price levels. This allows for more informed decision-making when evaluating breakout or reversal scenarios.

• Time Sensitivity
  Each cluster is associated with the last occurrence of its POCs, ensuring that plotted levels remain relevant to recent market conditions.

• Scalability Across Timeframes
  Since the POC source timeframe can be adjusted, the indicator can be used for both short-term and long-term analysis. For example, clusters on a lower timeframe may help with scalping, while higher timeframes provide macro support and resistance.

• Noise Reduction
  The requirement for a minimum number of POCs per cluster ensures that insignificant or accidental price levels are filtered out, leaving only zones with repeated market confirmation.

Conclusion

The SR POC VOLUME indicator systematically organizes raw price and volume data into visually identifiable clusters of support and resistance. By combining POC analysis, delta aggregation, and configurable clustering logic, it provides a framework for identifying high-probability areas of interest. Its visualization through rectangles and strength labels allows traders to quickly recognize where significant buying or selling imbalances have accumulated and to incorporate this information into their decision-making process.

This makes it a useful tool for traders who rely on market structure, order flow dynamics, and price-volume interaction to guide entries, exits, and risk management.