The indicator shall attempt to do the following:
- Look at a lower time-frame. E.g 5 minutes when on a 1-hour chart.
- Create a function to loop through through candles and make an assessment.
- If the candle it closed up, the volume will be categorized as buying volume. Conversely, if it closed down, the volume will be categorized as selling volume
- The function will then be passed to the security() function to run on a lower timeframe.
- All buying volume and selling volume from the lower time-frame shall be summed and displayed on the main chart.
This indicator will not give you genuine buying or selling volume. It simply follows the assumption that if price closed up, there must have been more buyers than sellers and if it closed down we assume the opposite.
In order to use this indicator, users will need to calculate how many lower time-frame bars are contained in the time-frame on the main chart. So for example, the default settings are configured for the indicator to be run on the 1H chart. As a result, we need to set the "Bars on Lower Timeframe" input to 12. This is because there are 12 x 5-minute bars in 60 minutes.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.