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OHLC Volume Histogram from Candle Range Components

Article MQL5 code base
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Summary

The indicator estimates upward and downward portions of tick volume from a candle’s high, open, close, and low. It allocates volume between two streams using the upper-range measure (high minus open) and lower-range measure (close minus low), then plots their difference as a colored histogram.

The description specifies no input parameters and gives the calculation, but provides no performance evidence or trading rules. It does not explain how to interpret histogram values, handle cases where the component ranges sum to zero, or validate the allocation as a measure of buying and selling pressure. Treat it as a candle-based volume visualization rather than evidence of directional order flow.

Key ideas

  • The histogram is the difference between estimated upward and downward volume streams.
  • Upward volume is weighted by the distance from the open to the high.
  • Downward volume is weighted by the distance from the close to the low.
  • The calculation uses tick volume and has no configurable inputs.

Tags

Technical indicatorsMarket microstructureStatistics

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