Flow Pressure Zones: Volume-Weighted Conviction and Reversal Levels

Summary

Flow Pressure Zones combines a weighted moving average trend regime with a bar conviction score and counter-trend reversal zones. The score multiplies real-body size relative to the bar range by volume relative to its moving average, capped at three times average volume, then normalizes the result against its recent range. Candle color intensity and synthetic fuel bars near the moving average visualize that score; they are intended as gauges, not additional price data.

A reversal signal requires strong opposing pressure, including a close near the appropriate end of the bar and above-average volume. The indicator anchors a thin zone at the signal bar’s extreme, limits zone frequency and count, replaces overlapping same-side zones, and removes a zone after two consecutive closes beyond it. The document describes possible uses for filtering trend entries, timing mean reversion, and managing invalidation. It provides implementation settings and code but no backtest or performance evidence. Its thresholds and lookbacks are configurable heuristics, and the text does not establish predictive reliability across markets or timeframes.

Key ideas

• The trend regime is defined by whether price is above or below a weighted moving average.
• The flow score combines bar body proportion with volume relative to its moving average, then normalizes it over a rolling window.
• Candle intensity and synthetic fuel bars visualize the flow score rather than forecast price directly.
• Counter-trend pressure can create a support or resistance zone at the signal bar’s extreme.
• Zones are rate-limited, capped, consolidated when overlapping, and invalidated after consecutive closes beyond them.

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