Hourly Relative Volume Histogram Normalized by a Moving Average
Summary
This indicator displays hourly volume as a colored histogram, with colors assigned to specified hour bands across the day. It normalizes each hour’s volume by dividing it by a simple moving average of volume over a user-selected period. A reading above one therefore indicates volume greater than that average, while a reading below one indicates less volume, assuming the same volume series and period are used.
The description explains the calculation and identifies the period as the indicator’s sole input, but it does not provide sample charts, tested thresholds, or a strategy for acting on the readings. The fixed hour-to-color mapping is stated without a timezone, market session, or instrument context, so the meaning of those bands may vary by data feed and market. The document presents a relative-volume visualization rather than evidence that the measure predicts returns or improves execution.
Key ideas
- The indicator compares current volume with a simple moving average over a configurable period.
- Its plotted value expresses volume as a multiple of the selected average.
- It colors volume bars according to fixed hour bands spanning the day.
- The description does not specify a timezone, market context, or trading rule based on the readings.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.