Detecting High-Volume Candles with a Wilder Average
Summary
This indicator highlights candles whose volume is at least twice a 125-period Wilder average. When the threshold is met, it places a label near the candle low showing the rounded volume multiple. An optional setting colors high-volume bullish candles blue and bearish candles orange, providing a quick visual distinction between buying and selling sessions with unusually active trading.
The document presents an indicator rule and implementation, but no chart examples, market tests, or evidence that these signals predict future returns. Its threshold and averaging window are fixed in the example, and the method does not define how to enter or exit trades. Volume surges may reflect different events across instruments and timeframes, so the display is best understood as a descriptive screening aid rather than a standalone strategy.
Key ideas
- The indicator compares current candle volume with a 125-period Wilder average.
- It flags bars when volume reaches at least twice the average.
- A label records the rounded multiple of average volume.
- An optional color scheme separates bullish and bearish high-volume candles.
- The document supplies no performance evidence or trading rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.