Building Candle Volume Profiles from Lower-Timeframe Data
Summary
FlowScope is a chart overlay that builds a volume profile for each candle or configurable group of candles using lower-timeframe data. It requests one-minute bars, divides the grouped price range into horizontal boxes, and allocates each lower-timeframe bar’s volume among boxes according to price-range overlap. The profile is displayed as text bars and volume values, with color gradients that emphasize the highest-volume area. Optional summaries show total volume and estimated buy and sell shares.
Buy and sell volume are approximated from each lower-timeframe bar’s close within its high-low range; these are not direct measures of aggressor-side trades. Profile resolution adapts to the group’s range and a maximum-box setting, and users can alter grouping, colors, and candle display. The document describes a visualization tool, not a trading strategy, and presents no evidence that its estimated volume distribution predicts price movement. Its usefulness depends on data availability, chart timeframe, and the assumptions used to allocate volume.
Key ideas
- The indicator builds price-level volume profiles from one-minute bars within each chart candle or candle group.
- It allocates each lower-timeframe bar’s volume across profile boxes in proportion to price-range overlap.
- Buy and sell volumes are estimated from where each bar closes within its range.
- Profile box height adapts to the grouped price range and a user-set maximum number of boxes.
- The indicator visualizes estimated volume distribution but does not provide evidence of predictive performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.