Volume Nodes

Volume Nodes Indicator:

What This Indicator Does:
The Volume Nodes indicator identifies and visualizes statistically significant volume events on your chart, helping you identify important price levels where substantial trading activity has occurred. Unlike standard volume indicators, Volume Nodes:

• Uses statistical analysis (z-scores) to identify truly abnormal volume bars
  
• Calculates accurate buy/sell volume ratios by analyzing all lower timeframe data
  
• Identifies the Volume Point of Control (VPOC) for high volume areas
  
• Visualizes significant volume ranges as they extend across the chart
  
• Tracks when price interacts with these important levels
  

Key Features:

• High Volume Detection: Highlights bars with unusually high volume (z-score above threshold)
  
• Low Volume Detection: Highlights bars with unusually low volume (z-score below threshold)
  
• VPOC Lines: Horizontal lines showing the exact price level with maximum volume concentration
  
• Volume Range Fills: Shaded areas showing the entire price range with significant volume
  
• Accurate Volume Metrics: Shows true buy/sell volume ratios or delta percentages derived from lower timeframe data
  

How to Use It in Your Trading: **Move to front in the visual order on chart**
Step 1: Identify Important Volume Zones

High Volume Bars (green/red candles) indicate where significant buying or selling has occurred
VPOC Lines extending from these bars show you the exact price level with highest volume
Range Fills show you the entire zone where significant volume occurred

Step 2: Use These Levels for Trading Decisions

Support/Resistance: VPOC lines often act as support or resistance levels
Breakout Validation: Breakouts on high volume are more likely to be valid
Low Volume Warning: Low volume bars (yellow) often indicate indecision or potential reversals
Trading with Volume Flow: Use the buy/sell ratio or delta % to confirm the strength and direction of moves

Step 3: Monitor Price Interaction with Volume Zones

When price approaches a VPOC line, watch for reaction (bounce or breakout)
When price enters a volume range area, increased volatility often follows
When price crosses a VPOC line, the line changes transparency indicating it's been tested

Tips for Optimal Use

• Higher Timeframes: The indicator works exceptionally well on higher timeframes (4H, daily, weekly) where volume patterns are more significant
  
• Range Trading: Use volume nodes to identify the boundaries of trading ranges
  
• Combine with Price Action: Look for price action confirmation (rejections, engulfing patterns) at VPOC levels
  
• Multiple Timeframe Analysis: Compare volume nodes across different timeframes to find confluent levels
  
• Alert Setup: Set up alerts for when price enters important volume zones or crosses VPOC lines
  
• Reversal Signals: High volume bars with significant wicks often signal exhaustion points where smart money is transferring positions. Bullish candles with long upper wicks suggest sellers absorbing buying pressure at highs, while bearish candles with long lower wicks indicate buyers stepping in at lows - both potentially signaling momentum shifts that precede reversals.
  

The indicator is particularly valuable for identifying levels where large players have been active in the market and are likely to defend or act again in the future.