Volume Heatmap for Price-Level Volume and Point of Control
Summary
This experimental chart indicator divides a manually selected price range into 31 levels and estimates how much volume occurred near each level over a chosen number of recent bars. It colors horizontal levels according to their relative volume and can mark a point of control when a level meets a configurable threshold. Users can display total volume or restrict the calculation to bars classified as buying or selling by whether the close is above or below the open.
The script also offers optional range boundaries, price labels, and vertical volume coloring. It retrieves one-minute volume data, but the shown horizontal calculation assigns each chart bar’s selected volume to a level based on that bar’s close; this is not a reconstruction of traded volume at every price. Results therefore depend on the selected range, chart timeframe, volume data, and the script’s simplified direction and price-level assumptions. The document provides implementation details but no performance evidence or trading rules.
Key ideas
- The indicator splits a user-defined price range into 31 horizontal levels and aggregates recent volume by closing-price location.
- Users can display total volume or volume from bars whose close is above or below the open.
- A color scale highlights relative volume, and a configurable threshold can identify a point of control.
- The displayed distribution is an estimate based on bar closes and should not be treated as full price-by-price traded volume.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.