HawkEye Volume Bars Using Price, Range, and Volume Conditions
Summary
The HawkEye volume indicator colors a volume histogram according to rules combining current price action, bar range, and trading volume. It compares range and volume with moving averages over a lookback period, then locates the current close relative to boundaries derived from the previous bar’s high and low. The rules assign red to bearish conditions, green to bullish conditions, and gray to conditions treated as neutral.
The described implementation includes several overlapping conditions for each color. For example, a close below the midpoint can trigger a bearish classification, while closes above it can trigger a bullish one; range and volume thresholds add further cases. Gray conditions include closes within the boundary band and specific low-range or volume patterns. The account provides the indicator’s rule structure, but no testing, performance results, or evidence that the colors predict future returns. It should therefore be understood as a visual market-state heuristic, not as a validated standalone trading signal.
Key ideas
- The indicator compares bar range and volume with their moving averages over a configurable lookback.
- It defines upper and lower price thresholds around the prior bar’s midpoint.
- Bearish, bullish, and neutral conditions determine the volume histogram’s red, green, or gray coloring.
- Several conditions overlap, and the described material provides no validation of predictive performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.