Intraday Volume Swings

The Intraday Volume Swings indicator tracks intraday volume-price trends to identify and project key supply and demand zones based on the highest and lowest volume swings of the previous day.

Usage

The Usage section describes how the script can be used to identify institutional interest and potential reversal zones. A "Volume Swing" is defined by a minimum of three consecutive bars exhibiting increasing volume and either higher highs (bullish swing) or lower lows (bearish swing).

The tool tracks these events throughout the trading day to find the absolute highest high swing and the absolute lowest low swing. These zones are then projected onto the following day's chart as shaded regions.

• Retracement Levels: The projected zones from the previous day act as significant support or resistance. Traders often look for price to react when re-entering these high-volume regions.
• Intraday Support/Resistance: By enabling current day levels, traders can see potential interest areas forming in real-time, which may eventually become the "final" daily swings.
• Trend Strength: Labels such as "Higher Swing High" or "Lower Swing Low" help identify if the current day's volume intensity is exceeding that of the previous day, signaling trend continuation or exhaustion.

Details

The script operates on intraday timeframes and requires volume data to function. It uses a three-bar lookback to validate the start of a swing. If the volume continues to increase and price continues to make new highs/lows beyond the initial three bars, the swing "expands," and the script dynamically updates the top and bottom boundaries of that specific swing.

At the end of the day, the script evaluates all confirmed swings and selects the one with the highest "top" and the one with the lowest "bottom" to serve as the benchmark levels for the next session.

Settings

• Mark all volume swings?: Toggles the display of small triangles on every bar where a 3-bar volume swing is confirmed.
• Mark first bar of a new day?: Highlights the start of a new trading session with a background color change.
• Mark daily lower/higher swings?: Displays labels indicating if today’s peak volume swings have surpassed yesterday’s peak levels.
• Display levels as they form?: When enabled, shows the current day's highest and lowest swings as they are being calculated, rather than waiting for the next day to project them.
• Must close in region to trigger alert?: Determines the sensitivity of alerts. If enabled, the price must close within a swing zone to trigger; if disabled, a simple touch (wick) will trigger the alert.

FAQ

How do I identify a valid swing? A valid swing is automatically identified by the script when at least three consecutive candles show increasing volume and consecutive higher highs or lower lows.

Why are no levels appearing on my chart? Ensure you are using an intraday timeframe (e.g., 1m, 5m, 15m) and that your current symbol provides volume data, as the script requires both to calculate swings.

How can I access this tool? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.