Mapping Bullish and Bearish Volume Across Price Ranges
Summary
The indicator divides the price range over a selected lookback window into horizontal zones and estimates bullish and bearish volume in each zone. It assigns volume to a zone using each bar’s closing price, then classifies the bar as bullish when its close exceeds its open and bearish otherwise. Colored bars show the relative volumes along the chart, while a marker identifies which side has more volume in that zone. High-volume areas can be used as candidate support or resistance levels.
The description gives default settings of 12 zones and a 200-bar lookback, with a scale setting to control display size. It notes that platform limitations restrict how far the zone count and lookback can be increased. The method is a visualization aid rather than a tested trading system: it does not establish that these levels will hold, and its directional volume labels are based on candle direction rather than trade-level order flow.
Key ideas
- The indicator divides the lookback price range into horizontal zones based on highs and lows.
- It allocates each bar’s volume to the zone containing its close.
- Bars closing above their open contribute to bullish volume; other bars contribute to bearish volume.
- Zones with greater volume can be considered possible support or resistance areas.
- The volume classification is a candle-based proxy, not trade-level order-flow data.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.