Volume Accumulation Indicator Weights Volume by Candle Position

Summary

The Volume Accumulation indicator transforms each bar’s volume according to where the close falls within that bar’s high-low range. It multiplies volume by a normalized candle-position term: the close’s distance above the low is compared with its distance below the high, then divided by the full range. A close near the high therefore contributes a positive reading, while a close near the low contributes a negative reading; a close near the midpoint contributes a value around zero. The resulting series is displayed in a separate chart window, with no user input parameters described.

This is a descriptive volume indicator, not a complete entry or exit strategy. The document provides the calculation but gives no trading rules, empirical tests, or evidence that the readings predict returns. Bars with no high-low range also require handling that the description does not specify, and the indicator alone does not account for market context, liquidity, or execution costs.

Key ideas

• The indicator scales bar volume by the close’s position within the high-low range.
• Closes near the bar high produce positive readings, while closes near the low produce negative readings.
• The indicator is displayed separately and is described as having no input parameters.
• The document provides no trading rules or performance evidence for using the indicator.

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