Price/Volume Heat Map
Author: avishn
Creation Date: 11/10/2009 2:43 PM
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avishn

#1
This is not an indicator per se, rather a custom PricePane background. The concept is very simple --
* take price and volume information over lookback period (such as last 40 bars)
* split price range into a number of "bins"
* calculate EMA of volume for each bin over the lookback period
* calculate standard deviation for all bins at the given bar
* plot it on the chart using yellow for volume values within standard deviation range and red for volume above standard deviation

It seems to help in identifying congestion areas as well as "resistance becoming support" scenarios.




It is possible that somebody already came up with similar idea before, I was not able to find any references though.

I'm sharing it here so maybe somebody else finds it helpful. Any kind of feedback is more than welcome.
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avishn

#2
Source code. Use at your own risk.

CODE:
Please log in to see this code.
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Eugene

#3
Very nice. Thank you for sharing!
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Eugene

#4
Included this eye candy in Community.Components 2009.12. Thanks again, Andrew!
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murty

#5
I have Community.Components installed. How to view Price/Volume Heat Map on my chart?
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Eugene

#6
See the online manual:

Price/Volume Heat Map