Volume-Peak Price Levels and Candle-Count Histograms

Summary

This indicator builds potential support and resistance levels from closing prices at confirmed volume peaks. A pivot-high calculation identifies peaks using a configurable lookback on either side; the latest selected prices are sorted and drawn as horizontal levels. The description suggests that previously tested levels may matter in future price action, with volume analysis as possible confirmation, but it offers this as a hypothesis rather than a tested rule.

An optional histogram counts bullish and bearish candles whose closes fall between adjacent levels over a configurable recent window. The displayed bin widths represent those counts, while the vertical spans correspond to price intervals between levels. The author notes that bins with few observations across a wide range may reflect rapid movement, but gives no formal volatility estimate or predictive evidence. The document supplies no trading entry, exit, risk rules, or backtest results, and the pivot confirmation means levels depend on later bars after a volume peak.

Key ideas

• The indicator places levels at closing prices associated with confirmed volume peaks.
• A configurable count controls how many recent levels are retained and displayed.
• The histogram counts bullish and bearish closes between neighboring levels over a selected window.
• Wide price intervals with few observations may indicate that movement through the area was relatively rapid.
• The suggested support and resistance interpretation is a hypothesis, with no backtest or formal validation included.

Tags

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