Volume per Point for Divergence, Exhaustion, and Spike Signals
Summary
This chart indicator normalizes bar volume by the high-low range to show volume per point, then marks changes in that measure with colored columns. It identifies divergence-like conditions when volume and candle range move in contrasting ways, and exhaustion-like conditions when a larger range accompanies lower volume. Optional percentage filters set how large those differences must be, while optional RSI thresholds gate the markers. A moving average of volume per point and an abnormal-spike marker provide additional context.
The script can also display estimated buy and sell volume histograms, although its buy-volume estimate allocates volume according to the close's position within the bar range. The author describes the tool as a way to inspect volume and possible market activity, but supplies no systematic validation or trading results. Signals are visual interpretations of bar data, so they should not be treated as confirmed order flow or standalone entry rules; zero-range bars also cannot produce a valid normalized reading.
Key ideas
- Volume per point is calculated by dividing bar volume by its high-low range.
- The indicator colors rising and falling readings and highlights contrasting volume and range behavior.
- Optional RSI and percentage filters can restrict divergence and exhaustion markers.
- An abnormal-volume-per-point condition is marked when the reading rises sharply relative to its prior value and average.
- Buy and sell histograms are visual estimates, and the document provides no validation as trading signals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.