A new feature was added to the volume indicator, in the charts window, with a recent update to the program. This feature allowed the colour of the volume bar to be changed, depending on a given rule. I thought I might explain how those rules work, as we recently had a query on that.
To view the settings, you will need to display the properties for your volume indicator. Do that by right clicking on an existing volume indicator and select the Volume Properties option from the menu. It would normally be the first option in the list.
You should then see both the options to set the colour of the volume bars in an up, down and even condition and the rule setting for how to determine which colour to use.
By default, your three colour settings might all be the same. This was done to ensure that existing charts wouldn’t change when this update was originally included. If your colours are the same, then change your three colour settings to something appropriate.
The Up/Down calculation, being the point of this blog post, is described below as if shown on a daily chart:
Current First to Last
The volume bar for each day will be coloured with the Up Volume Colour if the current day’s last price is higher than the first (or open price) for the same day.
Prior Last to Last
The volume bar for each day will be coloured with the Up Volume Colour if the current days last price is higher than last price (or close price) from the day before.
Prior Volume to Volume
The volume bar for each day will be coloured with the Up Volume Colour if the current days volume is higher than the volume from the day before.
If the chart was a weekly chart, monthly or intraday chart, then the comparision is done on the prior bar or point, not still calculated on the prior day. In the future, it would be great if similar colour comparison rules could be used on any indicator, including the base chart price. For chart prices, this would include changing the colour based on outside days etc.