Visualizing Up and Down Volume Across Zigzag Swings

Summary

This indicator groups volume between successive Zigzag pivot points to show activity across each swing. It classifies each candle’s volume as positive when the close is at or above the open, and negative when the close is below the open. In regular mode, it plots total swing volume and colors the bar by swing direction; other modes separate the two volume components.

The display options stack the components, overlap them from zero, or place them on opposite sides of zero. Stacked bars can follow swing direction or use a selected order, such as placing the larger component first. Optional moving averages summarize total volume in regular mode or the separate components in opposite-sides mode. The script provides a visualization tool, not evidence of a predictive trading edge. Its directional volume labels are based on candle bodies, so they do not identify actual buyer-initiated versus seller-initiated trades; Zigzag pivots may also update as price develops.

Key ideas

• The indicator aggregates candle volume between successive Zigzag pivots to describe each swing.
• Candle direction assigns volume to positive or negative components, using open and close prices.
• Four display modes show total volume or separate components through stacking, overlap, or opposite sides of zero.
• Stack order can be selected, and moving averages are available for supported display modes.
• The visualization does not establish predictive value or measure trade-level buying and selling pressure.

Tags

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