Detecting Intraday Volume Swings and Mapping Daily Price Zones
Summary
This indicator defines a volume swing from a run of at least three bars in which volume rises from the prior bar while price makes successive higher highs or lower lows. A swing is confirmed when that run ends. The script tracks the high and low boundaries of each swing region, updating them while the run continues, then records the day’s lowest swing-low region and highest swing-high region. It also retrieves corresponding regions from the prior two days and labels when the latest daily swing is lower or higher than the earlier one.
The chart can mark individual swings, the start of a new day, daily extremes, and evolving levels. Alerts trigger when price approaches current-day or prior-day swing regions, with an option to require a close across a region boundary. The indicator is restricted to intraday charts with volume, and its definitions depend on bar construction, session boundaries, and the quality of reported volume. It supplies a way to organize price zones and alert on tests, but gives no evidence that these levels predict reversals or support a profitable trading rule.
Key ideas
- A swing requires three consecutive bars of rising volume and rising highs or falling lows.
- A swing region spans the highest high and lowest low observed during the run.
- The indicator tracks the day’s lowest swing-low zone and highest swing-high zone.
- It compares daily swing extremes across recent days and can mark higher highs or lower lows.
- Alerts identify approaches to swing regions, optionally requiring a close through the boundary.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.