BVI improves on your typical volume histogram by coloring the bars based on 5 criteria:
* Volume Climax Up – high volume , high range, up bars (red)* Volume Climax Down – high volume , high range, down bars (white)
* High Volume Churn – high volume , low range bars (green, barcolor= blue)
* Low Volume – low volume bars (yellow)
* Volume Climax plus High Volume Churn – both the above conditions (magenta)
When there are no volume signals the default histogram bar coloring is cyan.
Bars can also be colored to match volume color. Enable "Change BarColors?" in the options page.
Volume Climax Up bars are typically seen at:
* The start of up trends
* The end of up trends, and
* Pullbacks during down trends.
The beginning of an up trend is almost always marked by a Volume Climax Up bar. This shows that the buyers are anxious to get on board and large volume enters the market and bids up prices quickly. A valid breakout should be followed by more buying but occasionally the low of the Volume Climax Up bar is tested.
Volume Climax Down bars are typically seen at:
* The start of down trends
* The end of down trends, and
* Pullbacks during up trends.
High Volume Churn bars are typically seen at:
* The end of up trends
* The end of down trends, and
* Profit taking mid-trend.
Low Volume bars are typically seen at:
* The end of up trends
* The end of down trends, and
* Pullbacks mid-trend.
Volume Climax Down bars are typically seen at:
* The start of down trends
* The end of down trends, and
* Pullbacks during up trends.
High Volume Churn bars are typically seen at:
* The end of up trends
* The end of down trends, and
* Profit taking mid-trend.
Low Volume bars are typically seen at:
* The end of up trends
* The end of down trends, and
* Pullbacks mid-trend.
More information can be read here: https://emini-watch.com/free-stuff/volume-indicator/
