This script colors bars whenever their volume has exceeded more than a standard deviation (or multiples of it) from a given amount of bars in the past.
Volume is commonly used as confirmation for a break of a significant level, or as indicative of offside positions when a level fails to be defended. Conviction or Excess, depending on the context.
Could you please guide, I am using this script on BANKNIFTY but it always shows Black and White candle. What I am doing wrong.
casualphoenixtrading
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The blue, red and white colors in the indicator have the following meaning:
Blue bars indicate that the current bar has a volume that is higher than the average volume of the previous n bars. Red bars indicate that the current bar has a volume that is lower than the average volume of the previous n bars. White bars indicate that the current bar has a volume that is equal to the average volume of the previous n bars. Here's a brief explanation of how the indicator works:
The indicator uses the average volume of the previous n bars to determine whether the current bar is high, low, or average volume. The user can set the number of bars to use for the average volume calculation by changing the "length" input. The indicator will display the bars with different colors based on the comparison of the current bar volume to the average volume of the previous n bars. It's important to note that this is a simple indicator that is based on volume and the color of the bars can help you to spot out the high volume bars, but you need to use it with other indicators or strategies to make a decision based on it.
For anyone that comes across this indicator, and don't understand it like I struggled to, hope this helps.