Syntax
public void PriceVolumeHeatMap(int lookback, int binCount)
public void PriceVolumeHeatMapAtBar(int currentBar, int lookback, int binCount)
Parameter Description
| Lookback |
Number of bars used in the distribution |
| binCount |
Number of bins |
| currentBar |
Current bar |
Description
Price/Volume Heat Map is created by
Andrew (avishn). Original thread at the Wealth-Lab .NET forum:
here.
The concept is very simple -
- take price and volume information over lookback period (such as last 40 bars)
- split price range into a number of "bins"
- calculate EMA of volume for each bin over the lookback period
- calculate standard deviation for all bins at the given bar
- plot it on the chart using yellow for volume values within standard deviation range and red for volume above standard deviation
It seems to help in identifying congestion areas as well as "resistance becoming support" scenarios.
Example
using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using Community.Components;
namespace WealthLab.Strategies
{
public class MyStrategy : WealthScript
{
protected override void Execute()
{
Calculate c = new Calculate( this );
c.PriceVolumeHeatMap(40, 40);
}
}
}
Here is a sample output:
 Price/Volume Heat Map |