This version is based on the power of multi-timeframe analysis. The basic functionality is simple: Plot lines from the high and low of candles formed during periods of high and fill the space between them. The levels for deciding what counts as "high volume" are based on standard deviations of the volume's , and the higher the , the brighter the zone. i.e., a zone set by a level that is 4 standard deviations higher than average will be more "filled in" and less transparent than a zone from a 2 standard deviation candle.
These zones tend to act as areas of congestion, and the "ceilings" and "floors" of the zones as . Overlapping zones tend to indicate strength and are likely to require more effort to get through. The more timeframes that agree with each other, the stronger the zone, ceiling, or floor.
By default, these zones are drawn based on the chart's timeframe and 1 timeframe higher, automatically set based on some "standard" values:
1m -> 5m
5m -> 15m
10m -> 30m
15m -> 60m
30m -> 60m
60m -> 1d
1d -> 1w
Finally, both the base timeframe and the higher timeframe are customizable; this is intended to make it easy to "double" up copies of the indicator to fit even more timeframes on the chart, creating a sort of heatmap for price analysis.
An example of three copies of the indicator, showing zones from 6 different timeframes.
- Added previous zone plotting for the base timeframe.
- Reordered drawing to prioritize base timeframe (draw it on top).
- Added auto settings for 2m/3m -> 5m timeframes.
- Updated to PineScript v5
- Set minimum fill level to 0 from 10.
- Changed the default color for higher timeframe volume zones to improve readability.
- Disabled Above Average volume zones by default.
- Updated settings input panel layout.
- Changed the "Above Average" volume level threshold calculation (from 1 standard deviation above average to just above average)
- Added toggles for each individual volume level threshold.
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.