Volume Balance Zones

Volume Balance Zones

Volume Balance Zones is an indicator that visualizes directional volume balance over a user-defined lookback period.

The indicator evaluates volume based on candle direction to provide contextual insight into market participation around the current price area. Results are displayed as zones on the price chart.

Calculation Logic

Volume is calculated from the selected lookback period.

Volume is separated based on candle behavior:

Bullish Volume: Candles that close higher than they open.

Bearish Volume: Candles that close lower than they open.

Volume from each side is summed independently.

Visualization

Results are displayed as rectangular zones on the price chart.

Zone Length represents the relative dominance of volume.

The side with higher volume is displayed with a longer zone.

Zone Position:

Bearish volume zone is displayed above the current price.

Bullish volume zone is displayed below the current price.

ATR (Average True Range) is used to determine the vertical distance of the zones from price.

Usage Notes

This indicator is intended to provide market context only, such as:

Comparing relative bullish and bearish participation.

Identifying areas of directional volume concentration.

It should be used in conjunction with other forms of analysis such as:

Price action

Market structure

Support and resistance

This indicator does not provide trade entry or exit signals.

Inputs

Lookback
Number of previous bars used in volume calculation.
Lower values emphasize short-term activity, while higher values provide broader context.

Bar Width
Maximum horizontal length of the volume zones.

ATR Length
Used to calculate the distance between the zones and the current price.