The histogram
Highlighted bars are the ones above the threshold, and the colour says whether it was absorption or intent. The line is the volume average.
Volume · NinjaTrader 8
Screenshot of the tool running.
Not all high volume means the same thing.
Heavy volume with a small range and heavy volume with a wide range are opposites. This histogram separates them and colours each bar by which one it is.
Absorption against intent
High volume with a contained bar: someone is absorbing. High volume with a wide bar: someone is pushing. Each case gets its colour.
Relative thresholds
The bar is set in multiples of the 20-bar average and of ATR, not fixed numbers. That is why one setting works across instruments and hours.
With its average in view
The volume average is drawn over the histogram, since that is what each bar is measured against.
What each term means
The names the indicator uses, and what each one means.
- Absorption. High volume with a small range: plenty comes in and price holds.
- Intent. High volume with a wide range: someone pushes and price moves.
- × 20-bar average. The threshold in multiples of average volume.
- × ATR14. The range threshold in multiples of the 14-bar average range.
Where it lives
Included in Starter, Essential and Complete. Starter is the free pack, so this indicator can be tried at no cost.