Wealth-Lab Wiki

API ChartStyles Community Components Community Indicators IndexDefinitions Knowledge Base Misc Optimizers Pending Deletion PosSizers Providers Standard Indicators TASC Traders Tips TASCIndicators Tutorial Videos Visualizers
RSS

Navigation


Quick Search
»
Advanced Search »


Price/Volume Heat Map

RSS

Syntax


public static void PriceVolumeHeatMap(this WealthScript obj, int lookback, int binCount)
public static void PriceVolumeHeatMapAtBar(this WealthScript obj, int currentBar, int lookback, int binCount)

public void PriceVolumeHeatMap(int lookback, int binCount) public void PriceVolumeHeatMapAtBar(int currentBar, int lookback, int binCount)

Parameter Description

LookbackNumber of bars used in the distribution
binCountNumber of bins
currentBarCurrent bar

Description

Credit for Price/Volume Heat Map goes to Andrew Vishnyakov (avishn).

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



Example using C# extension methods:


using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;

namespace WealthLab.Strategies { public class MyStrategy : WealthScript { protected override void Execute() { this.PriceVolumeHeatMap(40, 40); } } }

Legacy syntax example:


using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using Community.Components; /*** Requires installation of Community.Components Extension from www.wealth-lab.com > Extensions ***/

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

Price/Volume Heat Map

Important Disclaimer: The information provided by Wealth-Lab is strictly for informational purposes and is not to be construed as advice or solicitation to buy or sell any security.  The owner of Wealth-Lab.com assumes no liability resulting from the use of the material contained herein for investment purposes. By using this web site, you agree to the terms of this disclaimer and our Terms of Use.

Used under license from FMR Corp. Copyright 2008 FMR Corp. All rights reserved.


ScrewTurn Wiki. Some of the icons created by FamFamFam.