The Volume Threshold Indicator is a powerful volume-analysis tool that highlights unusual trading activity, churn bars, and true high-volume moves directly on your chart. By combining statistical volume thresholds, density analysis, wick detection, and ATR-based range filters, this study helps traders quickly identify when price and volume are aligned—or when high volume is just noise.
Key Features:
✅ Adaptive Volume Thresholds – Calculates average volume with standard deviation bands to identify significant spikes.
✅ Density Analysis – Evaluates volume per price range (volume density) to detect whether volume is driving real moves or just churn.
✅ Wick & Doji Detection – Flags candles with large wicks, small ranges, or indecision, helping you filter out low-quality signals.
✅ Smart Color Coding:
• Magenta/Cyan – Strong high-volume directional bars (down vs. up).
• Yellow – Churn bars with volume but weak conviction.
• Light Orange/Plum – Lower-level churn or noisy bars.
• Gray/Dark Gray – Normal to low-volume candles.
✅ ATR-Adjusted Filters – Normalizes volume analysis against true range for more reliable insights across different tickers and timeframes.
Perfect For:
Traders who want a deeper understanding of volume behavior and need to separate high-quality breakout bars from false signals. Ideal for day traders, scalpers, and swing traders looking to filter trades with a volume-based confirmation system.
The Volume Threshold Indicator is a powerful volume-analysis tool that highlights unusual trading activity, churn bars, and true high-volume moves directly on your chart. By combining statistical volume thresholds, density analysis, wick detection, and ATR-based range filters, this study helps traders quickly identify when price and volume are aligned—or when high volume is just noise.
Key Features:
✅ Adaptive Volume Thresholds – Calculates average volume with standard deviation bands to identify significant spikes.
✅ Density Analysis – Evaluates volume per price range (volume density) to detect whether volume is driving real moves or just churn.
✅ Wick & Doji Detection – Flags candles with large wicks, small ranges, or indecision, helping you filter out low-quality signals.
✅ Smart Color Coding:
• Magenta/Cyan – Strong high-volume directional bars (down vs. up).
• Yellow – Churn bars with volume but weak conviction.
• Light Orange/Plum – Lower-level churn or noisy bars.
• Gray/Dark Gray – Normal to low-volume candles.
✅ ATR-Adjusted Filters – Normalizes volume analysis against true range for more reliable insights across different tickers and timeframes.
Perfect For:
Traders who want a deeper understanding of volume behavior and need to separate high-quality breakout bars from false signals. Ideal for day traders, scalpers, and swing traders looking to filter trades with a volume-based confirmation system.
