Volume Adjusted Candles

9 Sep

Traditional candlestick charts are invaluable for visualizing price movements over time. However, they often lack an explicit representation of trading volume, a key factor that can significantly influence price action. Our Volume Adjusted Candles Indicator fills this gap by incorporating volume directly into the candlesticks, allowing for a more comprehensive analysis.

How Candles are Calculated

• Each candlestick in this indicator is adjusted based on the volume of trades that occurred during its timeframe. The process involves segmenting the price range of the trading session into equal parts, known as 'bins'. Each bin represents a segment of the price range, and the volume of trades within each bin influences the final shape and position of the candlestick.
  
  
• The Formula: The volume adjusted position of each part of the candle (high, low, and close) is calculated using a weighted average formula where each price point is weighted by the volume of trades at that price. This results in a volume-weighted price for each segment of the candle, making it easy to see where the most trading activity occurred and how it impacted price movements.
  

9 Sep

Nota Keluaran

Improved High/Low calculation method

9 Sep

Nota Keluaran

Added standardization

9 Sep

Nota Keluaran

added indicator table

9 Sep

Nota Keluaran

added divergences

9 Sep

Nota Keluaran

fixed wicks

10 Sep

Nota Keluaran

removed standardization
fixed lower wick

11 Sep

Nota Keluaran

Added volume flow, blue indicates increasing volume
added trend direction via fractal proximity