Volume by Price Levels for Support, Resistance, and Fibonacci Swings

Summary

This indicator divides a selected price range into bins and totals volume associated with bars whose closing prices fall in each bin. It marks the bin with the greatest volume as a strong level, then identifies low-volume bins above and below it as potential weak areas. The proposed interpretation is that price crossing the strong level may move toward a weak area, though the document provides no testing or performance evidence for that hypothesis.

The code offers several ways to choose the range, including lookback highs or lows, custom endpoints, and a fixed bar count. It draws volume bars and the selected levels, and can overlay Fibonacci retracement levels across the range. The author also suggests using swing segments for entries and Fibonacci levels for a trailing stop. This is an indicator and strategy concept rather than a validated trading system; it leaves automation of swing identification as future work and notes that the code may need correction or improvement.

Key ideas

• The indicator bins a selected price range and compares volume across the bins.
• The highest-volume bin is treated as a possible support or resistance level.
• Low-volume bins above and below the strongest bin are proposed as potential price destinations after a crossing.
• The indicator can derive its range from lookback extrema, custom endpoints, or a specified bar window.
• Fibonacci retracement levels are drawn over the selected swing range and suggested for trailing stops.

Tags

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