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Volume By Price (VOLBP)

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Volume By Price is an overlay that shows the amount of volume for a certain price range. It is shown by horizontal bars based on the current data of the chart. The drawn bars span the price range, meaning that all volumes within that range are added to that bar. Chartists can use Volume By Price to provide support or resistance based on the high volume price ranges.

Volume By Price can be used as a support and resistance identifier. That is because larger volume at a certain price range shows higher interest in that price range. This interest can influence future supply and demand such that if the price goes to far away from the interest range then the price is likely to return to that range. Therefore, if an arrow is thrown by another indicator and the arrow is near a peak or valley in a low interest (low Volume By Price area) and the arrow points toward the higher interest price range then it can be said that the arrow is more likely accurate or supported.

Calculation

Volume By Price calculations are based on the Volume of the specified number of Price Bars back in the preferences.  The Volume is considered at the Closing price of the bar. The volume at each price is then tallied up in the number of bars indicated in the Bar Height Scaling section of the preferences.

A Volume By Price bar is broken up into down volume (darker default color) and up volume (lighter default color). Up volume is when a price bar's price is greater than the open and down volume is when a price bar's close is less than the open.

Example of Volume By Price overlay with the Volume indicator:

Volume By Price Example

Preferences

Right-click anywhere on the chart and go to "Overlay Properties." Select Volume By Price from the list. The preferences will appear in the Control Panel. (Once you click on the chart, the Preference tab will go back to chart settings.)

Volume By Price PreferencesRestore Settings: TNT Default will change your settings back to the original software settings. My Default will change current settings to your personalized default settings. Update All VOLBPs will apply your selected settings on all open charts. Save As My Default will save your current personal settings.

Volume Up: This is the color of the up volume or the volume for which the close price is above the open price.

Volume Down: This is the color of the down volume or the volume for which the close price is lower than the open price.

Length of Bars: The length of the Volume By Price bars is the percent of the chart.

Price Bars Back: Chooses the number of price bars from the current bar to use

Bar Height Scaling: This defines how many bars of price range will the volume be divided into.

 Autoscale: This allows the user to choose how many price range increments to divide the volume of the bars from Price Bars Back. It will take the highest price range and the lowest price range of that section and then create equal intervals of minimum moves to fit the number of bars. This will update the manual section to show how many minimum moves per bar.

Manual: This allows the user to choose the minimum move range per bar. VOLBP will then draw as many bars as it needs for this based on the number of Price Bars Back selected. The Preferences tab shows how many tics/pips is a minimum move and how much the dollar value is per Volume Price Bar.