Coloring Volume Bars by Change from the Previous Bar

Summary

This note describes a ProRealTime version of a volume indicator originally made for TradingView. It compares each bar’s volume with the prior bar’s volume, coloring the histogram green when volume rises and red when it falls. The described calculation is a simple one-bar comparison, with no smoothing, threshold, or additional signal logic.

The document provides an implementation description but no chart examples, performance evidence, or rules for using the colors to enter or exit trades. A rising bar only indicates more volume than the previous bar, and a falling bar indicates less; neither direction alone establishes buying or selling pressure or predicts price movement. The indicator is therefore a visual aid, and its usefulness depends on how a trader interprets it alongside other market information.

Key ideas

• The indicator compares current volume with the previous bar’s volume.
• It colors volume increases green and decreases red.
• The document offers no evidence that the coloring predicts price direction or improves trading results.

Tags

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