This indicator has many components; below, each component is explained and how it can be used as a trading tool.
The indicator analyzes past volume movements, allowing you to visualize selected volume percentages above and below candles and to visualize live recovery of High-Volume Candles.
- The High-Volume Candles project to the current time to show how much of the High-Volume Candle has been recovered and how much remains unrecovered.
- The indicator can be customized to a user-defined volume percentage; this allows you to focus on candles with volume over a given percentage (e.g., 500%.)
- You can customize the candle colors and volume percentage thresholds.
Volume Percentage by Candle
You can select the option to display percentages above the candles, allowing you to research and back-test theories.
Volume Percentage by Zone
There is also the option to show the volume percentage within the unrecovered High-Volume Zone.
This allows you to instantly assess how strong the price movement was of that particular High-Volume Zone.
Lookback periods can also be adjusted to fine-tune the indicator. The lookback period averages the volume of the input amount. For example, if “10” is used this means the previous 10 volume bars will be added together and divided by 10, calculating the volume average.