Classifying Directional Volume Shapes with Candle Pressure

Summary

This indicator turns candle-direction pressure into a signed volume display and classifies the recent magnitudes into distribution shapes. It calculates a candle score from the open, close, high, and low, converts that score to positive or negative pressure, and can weight it by volume. A Gaussian-smoothed profile of recent absolute pressure is assessed for peaks, skew, and overall slope to assign categories such as bell-shaped, skewed, J-shaped, or multimodal. The selected shape is then rendered as a repeating template whose columns are signed according to a smoothed bullish or bearish polarity. Optional labels and a moving average support chart interpretation.

The script offers adjustable detection, smoothing, and template-cycle settings, but the output is primarily a visualization rather than an explicit entry or exit system. The listing provides no backtest, predictive evaluation, or evidence that any shape forecasts returns. Its shape labels depend on chosen windows and classification thresholds, while volume weighting can alter which bars dominate the profile. Traders should assess the indicator on their own instruments and data before using it in a decision process.

Key ideas

• Candle anatomy produces a directional pressure score that can be weighted by traded volume.
• A smoothed profile of recent absolute pressure is classified using its peaks, skew, and slope.
• The detected shape controls a repeating template, while smoothed pressure determines bullish or bearish polarity.
• A configurable moving average is available for display and does not affect the shape classification.
• The indicator offers visual analysis but supplies no tested trading rules or 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.