A volume-based indicator that colors bars based on price position within the daily range, helping traders identify potential momentum shifts and trend strength dynamically.
Explore complementary indicator rolesHow it works
The indicator analyzes daily price ranges by comparing the closing price against the total trading range. When the close is at least 70% towards the top of the range and 1% above the low, the volume bar turns green, signaling potential bullish momentum. Conversely, when the close is at least 70% towards the bottom of the range and 1% below the high, the volume bar turns red, indicating potential bearish momentum.
Volume bars that do not meet these specific conditions remain gray, representing neutral or inconclusive price movement. This color-coding system provides traders with an immediate visual representation of price strength and potential trend direction within each trading period.
Why it may be useful
This indicator offers traders a quick and intuitive way to assess price momentum and potential trend shifts without complex calculations. By color-coding volume bars based on precise range positioning, traders can rapidly identify when prices are showing strength or weakness during a trading session.
The visual representation helps traders make faster decisions about potential entry and exit points, providing insights into the underlying market sentiment. It transforms raw volume and price data into an easily digestible format that can help traders quickly understand the current market dynamics.
When to explore it
The indicator is most effective in markets with clear trending characteristics and sufficient trading volume. It works best for short-term traders like scalpers and day traders who need quick insights into potential momentum changes within a single trading session.
Traders should use this signal in conjunction with other technical analysis tools to confirm potential trade signals. It is particularly useful in volatile markets where quick identification of price strength can provide a competitive edge in decision-making.
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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.
