The Volume Bars Color indicator for the TradingView platform is a tool for visualizing trading volumes based on their values. It colors volume histograms on the chart according to their relative magnitude compared to the average volume and standard deviation.
Features:
- Volumes exceeding the average value by more than one standard deviation are considered large and highlighted in red. - Volumes lower than the average by more than one standard deviation are considered low and displayed in orange. - Volumes within one standard deviation of the average are considered average and marked in gray. - Users can adjust the period for calculating the average volume.
How to Use:
- Add the indicator to your chart. - Adjust the period for calculating the average volume using the corresponding parameter. - Observe how trading volumes on the chart are colored based on their magnitude relative to the average volume and standard deviation.
Example Usage: On the chart, red volume histograms indicate periods of high trading activity, orange histograms signify low trading volume, and gray histograms represent average trading volume.
Remember: The Volume Bars Color indicator helps visualize trading volumes and identify periods with the most active or least active trading volume. However, it should be used in conjunction with other tools and analytical methods to make informed trading decisions.