A volume analysis tool that highlights candles based on trading volume compared to recent average, helping traders identify market activity and potential momentum shifts.
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The script calculates a 20-bar average volume as a baseline for comparison. It then evaluates each candle's volume against this average, applying color-coded visual indicators to provide quick insights into trading activity.
When the current volume exceeds 1.5 times the average, candles are marked green or red, signaling significant market movement. Conversely, when volume drops below 0.5 times the average, candles are colored gray, indicating low trading interest and potential market consolidation.
Why it may be useful
Volume analysis is crucial for understanding market dynamics and potential price movements. By highlighting volume variations, traders can quickly identify periods of increased market activity and potential trend changes without complex calculations.
This tool provides an intuitive visual representation of trading volume, allowing traders to make more informed decisions about market momentum and potential entry or exit points. The simple color-coding system makes it easy to spot significant volume shifts at a glance.
When to explore it
This volume analysis tool is most effective during volatile market conditions where trading volume can provide critical insights into market sentiment. It works particularly well in markets with consistent trading activity, such as major stock indices, forex pairs, and liquid commodities.
Traders should use this indicator in conjunction with other technical analysis tools to confirm signals and avoid false positives. It is especially useful for short-term trading strategies that rely on quick identification of market momentum and potential trend changes.
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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.
