Volume Anomalies and Price-Level Liquidity Mapping

Summary

This indicator combines unusual-volume marking with a simplified volume profile. For the time-based view, it compares each bar’s volume with a rolling standard-deviation measure and uses bubble size to indicate the resulting magnitude; candle direction determines the bubble color. Extreme readings receive a volume label. For the price-based view, it divides the high-low range over the lookback window into one hundred bins, assigns each historical candle’s volume to a bin using its closing price, and draws a profile scaled to the largest bin. Horizontal lines emphasize bins with relatively high volume, which the article interprets as possible support or resistance, while thinner zones may allow faster price movement.

The description gives configurable display options and a default lookback of two hundred candles, but it offers no backtest or evidence that the plotted levels forecast price behavior. The code’s volume normalization is a volume-to-standard-deviation ratio rather than a conventional centered z-score, and assigning an entire bar’s volume by its close simplifies where trading occurred within the bar. Treat the visualization as a charting aid, not a validated signal.

Key ideas

• The indicator marks volume relative to a rolling standard-deviation baseline with colored bubbles.
• It builds a price-binned volume profile from closing prices over the selected lookback window.
• Profile bins are scaled by the most active bin and drawn with varying visual emphasis.
• The author interprets prominent bins as potential support or resistance and sparse areas as faster-travel zones.
• The supplied material gives no predictive test, and its bar-to-price volume assignment is simplified.

Tags

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