A custom volume analysis indicator that uses Gaussian bell curve statistics to identify unusual trading volume and potential price movement opportunities through normalized volume and candle coloring.
Explore complementary indicator rolesHow it works
The indicator combines three separate technical analysis components to analyze trading volume and price action. It first calculates the relative volume (RVOL) by determining the average volume over a specified period and comparing new volume values to this average.
Using statistical methods like z-score and standard deviation, the indicator normalizes volume data and identifies volume anomalies. It then colors chart candles based on whether their volume and body size are within normal statistical ranges or represent unusual market activity.
Why it may be useful
This indicator provides traders with an objective, statistically-driven approach to analyzing market participation and potential price movements. By transforming complex statistical calculations into intuitive color-coded visual representations, it helps traders quickly identify unusual market conditions without requiring deep mathematical expertise.
The tool bridges the gap between complex mathematical analysis and practical trading insights, allowing traders to recognize potential opportunities more efficiently and make more informed decisions based on volume and price action statistics.
When to explore it
The indicator works best during periods of potential trend changes, market transitions, and when seeking confluence with other technical analysis tools. It is particularly useful for traders looking to identify unusual volume patterns that might precede significant price movements.
Traders can leverage this tool across different timeframes, from scalping to swing trading, by adjusting the statistical parameters and using it in conjunction with other indicators like VWAP to confirm potential entry and exit points during market transitions.
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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.
