Bar Volume Labels Split by Candle Direction
Summary
The document describes two indicators that display each bar’s traded volume according to whether the candle closes above or below its open. A positive candle assigns the full volume to buying pressure and displays it in green; a negative candle assigns the full volume to selling pressure and displays it in red. The first version places the value near the candle’s low or high, while the second scales volume by one million and places it in a separate indicator area with reference lines.
The examples provide indicator logic but no market data, performance tests, or evidence that candle direction identifies actual buyer or seller pressure. Flat candles are not handled explicitly, and the displayed categories should be understood as a simple price direction proxy rather than a measure of aggressor-side order flow. The material does not specify an asset class or a trading rule based on the readings.
Key ideas
- The indicators classify volume using whether the candle closes above or below its open.
- Positive candles display volume in green as buying pressure, while negative candles display it in red as selling pressure.
- The second version scales volume to millions and plots it in a separate indicator area.
- Candle direction alone does not establish which side initiated trades or validate a trading signal.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.