A volume indicator that splits volume bars into bullish and bearish segments, visually representing buying and selling pressure within each trading candle.
Explore complementary indicator rolesHow it works
The indicator breaks down each volume bar into two distinct color-coded segments: green for bullish (buying) volume and red for bearish (selling) volume. By stacking these segments within a single volume bar, the indicator creates a visual representation of the buying and selling pressure during each trading period.
The green portion is plotted first, representing the volume associated with price increases, while the red portion is slightly offset to create a stacked effect, showing the volume connected to price declines. This method allows traders to quickly assess the balance of market sentiment within each trading session.
Why it may be useful
Traditional volume indicators often fail to provide a clear picture of market dynamics, showing only total volume without distinguishing between buying and selling pressure. This indicator solves that problem by offering a granular view of market sentiment, allowing traders to understand the underlying strength of price movements.
By visualizing the proportion of bullish versus bearish volume, traders can gain insights into potential trend reversals, market momentum, and the conviction behind price actions. This can help in making more informed trading decisions by revealing the true market psychology.
When to explore it
This volume indicator is most effective in volatile or range-bound markets where understanding the balance of buying and selling pressure is crucial. It works particularly well during periods of price consolidation or when trying to identify potential trend reversals.
Traders should pay special attention to instances where the bullish and bearish volume segments show significant imbalance, as this could indicate a potential shift in market sentiment. It is particularly useful in combination with other technical analysis tools to confirm trading signals and assess market strength.
Keep exploring
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.
