Bull and Bear Volume Bars with Rolling Average Comparisons
Summary
This indicator is presented as a way to observe shifts in buying and selling pressure during accumulation or distribution. It draws volume histograms for bullish and bearish bars: bullish volume is scaled by the close’s position within the bar’s range, while bearish volume uses the full volume. It also calculates rolling average volume for up bars and down bars by dividing each side’s total volume by its number of bars over the chosen period.
The author interprets larger green bars as stronger bullish activity for the selected timeframe and a bull-average line crossing above the bear-average line as improving longer-term bullish strength. A period of at least 22 is suggested, aligned with the chart timeframe. The document offers a qualitative indicator explanation, not performance tests or rules for entering and exiting trades. The measure depends on bar direction and close location, so it should be treated as a proxy for pressure rather than direct evidence of buyer- or seller-initiated trades.
Key ideas
- Bullish volume is weighted by where the close falls within the bar’s range.
- Bearish bars contribute their full volume to the bearish series.
- Rolling averages compare total volume on up and down bars with the number of bars in each group.
- A bull-average line rising above the bear-average line is interpreted as strengthening bullish pressure.
- The suggested averaging period is at least 22 and should match the chart timeframe.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.