A volume analysis indicator that highlights candle volumes based on their size and type, helping traders identify market structure, buyer/seller interest, and potential price movement strength.
Explore complementary indicator rolesHow it works
The indicator analyzes volume by comparing current candle volumes against preceding candles, marking them with specific colors and types based on their relative strength. It categorizes candles into three types: type 1 (strong result), type 2 (moderate result), and type 3 (weak result), which helps traders understand the potential market dynamics.
By allowing customizable settings, traders can select the number of preceding candles to compare volumes against and choose whether to display markings on the main chart or volume chart. The visualization helps identify liquidity gathering points and zones of buyer and seller interest, providing a nuanced view of market structure beyond price movement.
Why it may be useful
Volume analysis provides critical insights into market sentiment and potential price movements that price action alone cannot reveal. By understanding the strength behind each candle's volume, traders can gain a deeper understanding of whether buyers or sellers are in control and assess the likelihood of continued price momentum.
The indicator's ability to highlight volume characteristics helps traders make more informed decisions by revealing hidden market dynamics. It transforms raw volume data into actionable visual information, allowing traders to quickly identify potential strength or weakness in current market conditions.
When to explore it
This volume indicator is most effective in markets with significant trading activity and clear volume patterns, such as stocks, futures, and forex markets during high-liquidity trading sessions. Traders can use it to confirm trend strength, identify potential reversals, and assess the reliability of price movements based on underlying volume dynamics.
The tool is particularly useful during key market events, breakouts, or when trading around support and resistance levels. By providing a granular view of volume behavior, traders can better understand market psychology and make more precise entry and exit decisions across different timeframes and trading styles.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
