Wyckoff Price-Volume Histogram for Volume Spread Analysis
Summary
The document describes a Wyckoff Price-Volume Histogram oscillator intended to apply volume spread analysis. In this context, a candle’s spread is its high-to-low range, rather than the bid-ask spread. The indicator derives a profile for each candle, uses that profile to calculate a volume weight, and compares profiles across candles to produce a histogram value. It also plots fast and slow simple moving averages based on the candle profiles.
Users can set the fast and slow smoothing periods and choose whether to display the histogram of profile changes. The document explains the calculation at a high level and refers to illustrations showing the display with and without the histogram, but it gives no formula, trading rules, performance evidence, or guidance for selecting periods. The indicator is therefore presented as an analytical aid, not as a validated standalone strategy; its signals and interpretation would need independent testing.
Key ideas
- The indicator applies volume spread analysis using each candle’s high-to-low range as its spread.
- It derives a candle profile and volume weight before calculating changes between profiles.
- Fast and slow simple moving averages are calculated from candle profiles.
- The histogram is optional and displays differences between current and past profiles.
- The document gives no formula, parameter guidance, or evidence of trading performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.