Volume Horizon — Horizontal Volume Indicator

Volume Horizon — Horizontal Volume Indicator

Volume Horizon is a horizontal volume indicator that shows how trading activity is distributed across different price levels.

The indicator is displayed as horizontal histograms, where each histogram line represents a specific price level and the amount of trading volume that occurred at that price.

The larger the volume at a certain price — the longer the histogram line.

The indicator uses tick volume, meaning the number of ticks that occurred at each price level.

How the Indicator Works

Volume Horizon divides the market into separate ranges and builds an individual horizontal volume histogram inside each range.

This allows traders to analyze not only the overall market volume distribution, but also how volume changes during different market phases.

The indicator supports two range calculation modes:

• ranges by bars
• ranges by waves

1. Ranges by Bars

In this mode, ranges are built using a fixed timeframe.

For example, if the timeframe is set to 1 Day, each range will represent one trading day.

This mode is useful for analyzing volume distribution within clearly defined time periods.

2. Ranges by Waves

This is the more dynamic mode of the indicator.

Instead of using only fixed time periods, the indicator builds ranges based on market movement.

The indicator uses base time ranges to create wave structures:

• if the current range breaks the high of the previous range, an upward wave is formed
• if the current range breaks the low of the previous range, a downward wave is formed

This approach allows traders to analyze volume in the context of price movement.

Wave Visualization

Wave ranges can be displayed using different colors:

• upward waves — green
• downward waves — red

All colors can be customized in the indicator settings.

What Each Histogram Shows

Each histogram displays the volume distribution inside a specific range.

Every horizontal line represents:

• a price level
• the amount of volume traded at that price

The longer the line, the higher the volume at that level.

This helps identify the price areas where the market activity was the strongest.

Maximum Volume Level

Each range also contains a Maximum Volume Level.

This is displayed as a solid thick line.

It marks the price level where the highest volume occurred inside the range.

This level can be used as a reference point for market analysis and potential reaction zones.

VWAP Line

Each range also includes a VWAP (Volume Weighted Average Price) line.

The VWAP line shows the average price of the range weighted by volume.

In simple terms, prices with larger volume have a greater influence on the VWAP calculation.

The VWAP line helps identify the average balanced price of the range.

Difference Between Maximum Volume and VWAP

The Maximum Volume Level shows the single price with the highest volume.

The VWAP line shows the average weighted price of the entire range.

In other words:

• Maximum Volume = the most active price level
• VWAP = the average balanced price of the range

Both levels provide different types of market information.

Total Histogram on the Right Side of the Chart

In addition to separate histograms for each range, the indicator also builds a Total Horizontal Volume Histogram.

This histogram is displayed on the right side of the chart.

It shows the combined volume distribution across all ranges used by the indicator.

This helps quickly identify:

• the most active price levels
• high-volume market zones
• important support and resistance areas

Possible Uses of the Indicator

Volume Horizon can be used for analyzing:

• high trading activity zones
• potential support and resistance levels
• market structure
• volume distribution
• upward and downward wave activity
• VWAP balance levels
• key price levels inside ranges

The indicator does not predict the future or generate guaranteed signals.

It is a market analysis tool that helps traders better understand volume distribution and price activity.

Main Indicator Settings

RANGES

This section controls how ranges are built.

Ranges Mode

• Ranges by Bars
• Ranges by Waves

Ranges Timeframe — timeframe used for range construction

Ranges Count — number of displayed ranges

Ranges Price Step — price step used for histogram calculation

This parameter controls how detailed the histogram structure will be.

HISTOGRAMS

This section controls histogram visualization.

Show Total Histogram — show or hide the total histogram on the right side of the chart

Histograms Volumes Lines Color — color of standard volume lines

Histograms Volumes Lines Up Color — color of upward wave histograms

Histograms Volumes Lines Down Color — color of downward wave histograms

Histograms Volumes Lines Width — width of histogram lines

Histograms Max Volume Levels Color — color of maximum volume levels

Histograms Max Volume Levels Up Color — color of maximum volume levels for upward waves

Histograms Max Volume Levels Down Color — color of maximum volume levels for downward waves

Histograms Max Volume Levels Width — width of maximum volume level lines

Histograms VWAP Levels Color — color of VWAP lines

Histograms VWAP Levels Width — width of VWAP lines

Histograms VWAP Levels Style — style of VWAP lines

Histograms Mark — histogram labels and markings

Summary

Volume Horizon is a horizontal volume analysis indicator designed to show how trading activity is distributed across price levels.

Its main feature is the ability to build horizontal volume not only by fixed time ranges, but also by market waves.

The indicator provides:

• horizontal volume histograms
• upward and downward wave analysis
• maximum volume levels
• VWAP levels
• total volume histogram on the right side of the chart

In simple terms, Volume Horizon helps traders better understand where market activity occurred, which price levels attracted the most interest, and how volume was distributed during market movement.

Strategies

Strategy 1: Volume Imbalance

Conditions:

• Presence of two clearly defined traded zones (High Volume Nodes)
• A fast price movement (impulse) between them
• Formation of a low-volume area (Low Volume Node – LVN)
• A V-shaped market structure

Entry:

• Enter when price returns to the Low Volume Node (LVN)
• Trade in the direction of the current wave, as defined by the indicator

Stop Loss:

• Placed beyond the extreme of the wave range

Take Profit:

• Risk-to-reward ratio: 1:1.5

Strategy 2: Breakout of the Point of Control (POC)

Conditions:

• A completed wave is formed
• The Point of Control (POC) of the previous wave is identified

Entry:

• Enter on the breakout of the POC level
• Trade in the direction of the breakout

Stop Loss:

• Placed beyond the extreme of the previous wave

Take Profit:

• At the opposite extreme of the wave (the other side of the range)

Strategy 3: Trading the High-Activity V-Zone

Conditions:

• A clearly defined V-shaped volume zone is formed
• The zone contains both VWAP (Volume Weighted Average Price) and POC (Point of Control)
• The zone represents the highest concentration of trading activity

Entry:

• Enter when price moves outside the V-zone
• Trade with the expectation of price returning back into the zone

Stop Loss:

• Placed beyond the breakout extreme

Take Profit:

• At the VWAP level

Strategy 4: Breakout from the Control Zone

Conditions:

• The control zone is defined as the range between the lowest horizontal volume level and the POC (Point of Control)
• The zone forms a V-shaped structure
• Price shows signs of preparing for a breakout from the zone

Entry:

• Enter after two candles close outside the control zone
• Trade in the direction of the breakout

Stop Loss:

• Placed beyond the opposite boundary of the control zone

Take Profit:

• At the extreme of the move or the opposite breakout level
• Alternative: Risk-to-reward ratio of 1:1.5

Strategy 5: Building Trading Levels

1. Global Levels:

• Built using maximum volume values (High Volume Nodes)
• The entire range defined in the indicator settings is analyzed
• Used as key levels from higher timeframes

2. Local Levels:

• Built based on POI (Points of Interest) of each individual wave
• Takes into account both price structure and volume within the wave

Method Logic:

• Levels are formed at price zones with the highest trading activity
• These zones are considered areas of strong market participant interest
• Such levels increase the probability of price reaction (pause, reversal, or breakout)