Rolling Volume Profile [Matrix Volume Heatmap] by NXT2017

Description
This indicator offers a unique visual approach to Volume Profile analysis. Instead of the traditional histogram bars or boxes, this script renders a Rolling Volume Profile as a background "Matrix Heatmap" directly on your chart.

By dividing the price action of the most recent N-candles into 30 horizontal zones (buckets), it visualizes where the most trading activity has occurred within your defined lookback period. The visualization uses dynamic transparency to highlight the Point of Control (POC) and high-volume nodes, while fading out low-volume areas.

🧠 How it Works
The script operates on a "Rolling Window" basis, meaning it recalculates the profile at every bar to reflect the immediate market context.

Dynamic Range: It calculates the highest High and lowest Low of the user-defined Lookback Length (default: 1000 bars).

Bucket Slicing: This vertical range is divided into 30 equal price buckets.

Volume Distribution (Overlap Logic): The script iterates through the historical data. If a candle is large and spans multiple buckets, its volume is distributed proportionally across those buckets. This ensures a more realistic profile compared to simply assigning volume to the close price.

Heatmap Visualization:

The script calculates the Maximum Volume (POC) within the profile.

It uses a Reference Length to normalize this maximum.

Dynamic Opacity: Zones with volume close to the maximum are rendered opaque (solid). Zones with low relative volume become highly transparent. This creates an automatic "Heatmap" effect, allowing you to instantly spot the most significant price levels.

⚙️ Settings
Lookback Length (candles): Defines how far back the profile calculates volume (e.g., 1000 bars).

POC Reference Length: Defines the smoothing window for the 100% volume baseline. Increasing this stabilizes the color changes; decreasing it makes the heatmap more reactive to sudden volume spikes.

Profil Color: Choose the base color for the matrix. The transparency is calculated automatically.

💡 Use Case
This tool is ideal for traders who want to see the "Value Area" of the current range without cluttering the chart with complex boxes or side-bars. It works excellent as a background context tool to identify:

• High Volume Nodes (Support/Resistance)
  
• Low Volume Nodes (Price gaps/Rejection areas)
  
• Migrating Points of Control (Trend direction)