Why do the colour on bar charts and volume bars not match sometimes?
The colour of volume bars can be different from a candle chart due to differences in the colour selection criteria.
The colour selection criteria are as follows.
For price candles
It is based on the opening and closing price of a stock in a given time frame.
The candle will be green if open price < close price.
The candle will be red if open price > close price.
For volume bars
The candle will be green if the candle's closing price > previous candle's closing price
The candle will be red if the candle's closing price < previous candle's closing price.
Accordingly, in a given time frame, if the closing price is greater than the opening price, but the candle's closing price is lesser than the previous candle's closing price, you will get a green candlestick & a red volume bar.
Learn more about various chart types in this chapter on Varsity.
Volume Bars
Volume bars are a representation of the transactions that have taken place on the best bid and ask. They are shown at the bottom of the chart. The color corresponds to the aggressor side: red is for sell side, and green is for buy side.
When a volume bar is shown in two colors, it means that the volume accumulated for this bar contains both buy and sell aggressor side trades. Zoom in onto this bar to see individual trades for both sides. This will also work for a single-color bar: in this case, zooming in onto it will display individual trades of the same side.
The height of each bar is proportionate to the cumulative volume of all trades this bar consists of. You can estimate the volume for each bar using the red reference line that appears when you hover your mouse over the volume bars. The indication of volume correspondent to this level is located on the left. Drag and drop the red line to proportionally change the height of each volume bar.
To customize volume bars:
1. Right-click on a volume bar and choose Volume Settings. This will open the Studies configuration menu with the Volume Bars tab active.
2. Select the desirable bar width in the Bars width dropdown. Note that the bar width is proportionate to the volume aggregation period.
3. In the Volume display options area, you can specify the following:
Coloring mode. Choose Solid to display the relative size of buy and sell aggressor trades as a combo of two solid colors. Choose Gradient to use a gradient scale for the relative size of buy and sell aggressor sides.
Calculation mode. Choose Total volume to display the total volume traded during the aggregation period. Choose Volume delta to display the difference between buy and sell order sizes.
4. In the Clustering dropdown, select the desirable mode of volume bar clustering:
Smart. Using a proprietary Bookmap algorithm, the system aggregates several adjacent bars into a single one. This algorithm takes into account both VWAP and time of execution. Drag the slider on the right to make this clustering more or less pronounced.
Time. The bars are shown in equal intervals with their height being proportionate to the aggregated transaction volume. You can select the desirable aggregation period from the dropdown to the right.
Volume. The system shows a new volume bar after a specified volume accumulates. You can specify the desirable cumulative volume using the combo-box on the right.
Note: A bar may accumulate more contracts than the specified value. This happens when the size of the last trade exceeds the limit value. For example, if the specified volume limit is 100 and the volume bar consists of two single consecutive trades of 50 and 100 in size, the volume bar will show 150 contracts traded, not 100.
Aggregation by price. All trades are accumulated in a single volume bar as long as they happen at the same price level, regardless of the aggressor side.
5. You can have both volume bars and volume dots use the same clustering mode. To do so, either click Inherit from dots so that bars inherit the mode from the dots or click Apply to dots to make the dots use the same mode as the bars do.
6. To restore volume bar settings to factory defaults, click Restore.
7. To hide volume bars, deactivate the checkbox to the left of Volume bars on the left-hand panel. To make it visible again, activate this checkbox.
If you thought the flyout volume bar looked a little old-fashioned on Microsoft Windows, then you’ll be happy to know it’s receiving a new look.
Microsoft is now rolling out revamped hardware indicator icons on the latest beta release of Windows 11. The company previewed the design for one of the icons through the volume bar.
As you can see, Microsoft is dropping the original vertical black bar for a horizontal one that nixes the numerical sound indicator for more minimalism. The result produces a look closer to a volume bar you’ll encounter on a smartphone or macOS.
Visible – controls visibility of the volume bars on the chart; this option is inactive by default, which means the volume bars are not visible on the chart, to make them visible mark the option as active;
Use real tick volume – this option is inactive by default, so volume is taken from the minute historical data; if it is marked as active, then volume is taken from the tick historical data;
Value filter – when checked, such elements as Operator and 'Filter value' appear. They allow to set up a constraint for renderers' displaying:
Operator – allows to select one of the comparison characters: =, >, >=, <, <=;
Filter value – allows to specify value to compare renderers' values with. Renderers' values, which don't correspond to a given condition, will not be displayed on the chart.
E.g., selecting " >=" and specifying the value 30 will result into displaying volume bars having values like 30, 31 [...] 45 etc.
Height, % – allows setting the size for area of the volume bars displaying. For example: Height, % = 30, i.e. 30 %;
Result type – allows selecting by what type volume bars will be built. Available values:
Total volume – shows total volume traded for a specified period of time (current mode);
Buy volume – shows only buy traded volumes for a specified period of time (defined by flag-aggressor);
Sell volume – shows only sell traded volumes for a specified period of time (defined by flag-aggressor);
Delta – shows difference between buy and sell volumes. Delta = Buy volume – Sell volume;
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