Intrabar Volume, Delta, and Wick-Based Absorption Profiles
Summary
This indicator builds price-binned views of buying and selling activity from lower-timeframe samples. It classifies intrabars by whether they close above or below their open, groups volume into strong and weak buy or sell segments using an absolute-volume percentile threshold, and computes per-bin delta as buy volume minus sell volume. An absorption measure assigns bullish volume associated with upper wicks and bearish volume associated with lower wicks, then aggregates those observations by price bin.
The display can show volume and delta profiles, absorption distributions, local absorption peaks as support or resistance zones, strong-activity bubbles, and periodic historical heatmap snapshots. A configurable lookback, sampling granularity, and bin count trade responsiveness and detail against computational and display load. Optional value-area highlighting expands from the highest-volume bin toward adjacent bins until its target share is reached. These are volume-based proxies built from intrabar direction and close location; the document provides no validation that they identify actual large traders, resting liquidity, or reliable future support and resistance. Data availability and chart timeframe also constrain sampling.
Key ideas
- Lower-timeframe intrabars are classified by close relative to open and accumulated into price bins.
- A percentile of absolute intrabar volume separates strong activity from weaker buying and selling.
- Per-bin delta is buy volume minus sell volume, while absorption is inferred from directional volume associated with wick regions.
- Local peaks in the absorption profile can be drawn as candidate support or resistance zones.
- Sampling depth, lookback, and bin resolution affect responsiveness, detail, and computational load; no predictive validation is presented.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.