Equivolume Bars: Scaling Candle Width by Trading Volume

Summary

This indicator redraws recent candles as equivolume bars, using each bar’s volume relative to the sum of volume over a configurable lookback to determine its horizontal width. The candle body shows the open-to-close range, while separate boxes display the upper and lower wicks. Bar color indicates whether the close is at or above the open. A live bar updates as new price and volume data arrive; confirmed bars are stored and redrawn as history.

The script offers controls for the number of displayed boxes, the volume lookback, maximum width, colors, and chart margins. It is a visualization method rather than a stated trading signal or tested strategy. The bars are independent of the chart’s time scale, so width represents relative volume rather than elapsed time. The author’s instructions require specific chart type, scale, and margin settings for alignment, and the display is limited to recent bars; the document also notes limits on bar replay.

Key ideas

• Equivolume bar width is based on current volume relative to a lookback sum of volume.
• Each bar retains its price range, body, wicks, and directional color while changing its horizontal width.
• The display is independent of the chart’s time scale, so bar width does not represent elapsed time.
• The script draws a limited set of recent bars and requires coordinated chart scale and margin settings.

Tags

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