Building a Bullish and Bearish Volume Profile by Price Level

Summary

This chart indicator estimates a volume profile by dividing the selected price range into equal-height buckets and assigning each candle’s volume to the bucket containing its midpoint price. It separates candles that close above their open from those that close below their open, allowing the display to show bullish and bearish volume at each level. Users can choose a fixed recent-bar window or base the range on the currently visible chart, then adjust bucket count and profile width.

Display options include combining the two volume estimates, offsetting them to show directional differences, applying a volume-based color gradient, and adding a perspective-like tilt. These settings change presentation and aggregation, not the underlying market data. The document describes a visualization tool rather than a trading system: it gives no entry or exit rules, validation, or evidence that the inferred volume nodes predict future price behavior. The profile is an approximation based on candle data and the selected range, so its resolution and interpretation depend on the bucket and lookback choices.

Key ideas

• The indicator bins the chosen price range into equally spaced levels and assigns candle volume by midpoint price.
• Candle direction is used to separate bullish and bearish volume estimates within each bucket.
• The profile can use a fixed recent-bar period or the currently visible chart region.
• Aggregation, directional shifting, gradients, width, and tilt affect how the profile is displayed.
• The tool visualizes candle-derived volume distribution and does not provide tested trading rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.