Heat map Volume
- 지표
- Minh Vuong Pham
- 버전: 1.10
1. How the Indicator Works
Heatmap Volume measures how many standard deviations the current volume is away from its moving average (SMA).
Core formula:
stdbar = (Current Volume - SMA of Volume) / Standard Deviation
The higher the stdbar value, the more abnormal the volume — and the more attention it deserves.
Threshold Levels
| Level | Default Multiplier | Meaning |
|---|---|---|
| 🔴 Extra High | > 4.0 σ | Extremely abnormal volume — very rare |
| 🟠 High | > 2.5 σ | Unusually high volume — noteworthy |
| 🟡 Medium | > 1.0 σ | Above-average volume — market is active |
| 🔵 Normal | > -0.5 σ | Normal volume |
| 🩵 Low | ≤ -0.5 σ | Low volume — quiet market |
Heatmap Lines
The 4 horizontal lines on the indicator window correspond to the 4 thresholds above. When a volume bar crosses above a line, volume has reached that level.
2. Core Principle
Volume precedes price.
Abnormal volume typically appears before or at the moment a major price move occurs. This indicator helps you instantly identify volume spikes instead of guessing by eye.
Important: Heatmap Volume is not a buy/sell signal. It is a confirmation and alert tool. Always combine it with price analysis and other indicators.
3. Specific Trading Scenarios
3.1. Confirming Real vs Fake Breakouts
Problem: Price breaks through support/resistance, but you're unsure whether it's a real or fake breakout.
How to use:
- ✅ Real breakout: The breakout candle shows 🟠 High or 🔴 Extra High volume → confirms strong buying/selling pressure behind the move → higher confidence to enter.
- ❌ Fake breakout: The breakout candle shows only 🔵 Normal or 🩵 Low volume → lacks conviction, likely to reverse → stay cautious, don't chase.
Practical example:
- Price breaks a key resistance level + 🔴 Extra High volume → enter Buy, place SL below the broken resistance.
- Price breaks resistance but volume is 🩵 Low → wait for a retest, don't enter immediately.
3.2. Identifying Potential Tops & Bottoms (Climax Volume)
Principle: Extremely high volume (🔴 Extra High) often appears at the top or bottom of a trend, marking an exhaustion phase.
How to use:
- During a prolonged uptrend, a 🔴 Extra High candle appears → could be climax buying → prepare for reversal or correction.
- During a prolonged downtrend, a 🔴 Extra High candle appears → could be capitulation selling → prepare for bullish reversal.
Key distinction — combine with candle direction:
- 🔴 Extra High + bullish candle in a downtrend → positive signal (buying pressure entering).
- 🔴 Extra High + bearish candle in an uptrend → negative signal (selling pressure taking over).
3.3. Confirming Trend Strength
How to use:
- Uptrend + consecutive bullish candles at 🟡 Medium or above → healthy trend, keep holding.
- Uptrend but volume gradually dropping to 🩵 Low → trend is weakening, prepare to exit or tighten SL.
Tip: Compare volume across waves:
- New bullish wave has higher volume than the previous → uptrend is still strong.
- New bullish wave has lower volume → bearish divergence, trend may be ending.
3.4. Detecting Accumulation & Distribution Zones
How to use:
- Price is ranging (sideways) + sudden 🟠 High or 🔴 Extra High volume → smart money is accumulating or distributing → prepare for a major breakout.
- High volume + bullish candle → accumulation (buying) → bullish bias.
- High volume + bearish candle → distribution (selling) → bearish bias.
3.5. Filtering Signals from Other Indicators
Heatmap Volume works best when combined with other indicators:
| Other Indicator | Combined with HMV |
|---|---|
| RSI / Stochastic | RSI oversold + 🔴 Extra High bullish candle = strong buy signal |
| MACD | MACD crossover up + 🟠 High volume = confirmed reversal |
| Support / Resistance | Price tests support + 🔴 Extra High bullish candle = strong bounce |
| Moving Average | Price crosses MA200 + 🟠 High+ volume = confirmed new trend |
| Bollinger Bands | Price touches band + 🩵 Low volume = likely continued ranging |
4. Parameter Tuning
MA Length & StdDev Length (default: 610)
| Value | Best for | Characteristics |
|---|---|---|
| 50–100 | Scalping, M1–M15 | Fast response, more signals, more noise |
| 200–400 | Day trading, M15–H1 | Balance between sensitivity and stability |
| 500–610+ | Swing trading, H4–D1 | Stable, only highlights truly abnormal volume |
Rule of thumb: Smaller values → more sensitive, more signals. Larger values → only catches extremely abnormal volume.
Threshold Multipliers
- If you see too few Extra High / High signals → lower the multiplier (e.g., Extra High from 4.0 → 3.0).
- If you see too many signals → raise the multiplier.
5. Common Mistakes to Avoid
-
Don't trade on volume alone. High volume only tells you "something unusual is happening" — it doesn't tell you direction. Always combine with price action.
-
Don't ignore context. Extra High volume during major news events (NFP, FOMC, CPI) is expected and doesn't necessarily signal a trade.
-
Low volume doesn't mean safe. Prolonged 🩵 Low volume often precedes a strong breakout — the market compresses before it explodes.
-
Be cautious with Tick Volume on Forex. MT5 uses tick volume instead of real volume for Forex. Tick volume is still useful but doesn't reflect actual traded volume precisely.
6. Sample Trading Workflow
Step 1: Identify the main trend (Higher Timeframe)
└─ Use MA, trendlines, or price action
Step 2: Find entry zones (Support/Resistance, Supply/Demand)
└─ On the price chart
Step 3: Wait for entry signal (Price Action, RSI, MACD...)
└─ Reversal candles, patterns, crossovers...
Step 4: CONFIRM with Heatmap Volume ← (this indicator goes here)
└─ Volume ≥ 🟡 Medium → OK, sufficient momentum └─ Volume 🟠 High / 🔴 Extra High → Excellent, high-quality entry
└─ Volume 🩵 Low → Be cautious, possible fake signal
Step 5: Trade management
└─ Volume declining → tighten SL or take partial profits
└─ Volume spike against your position→ consider exiting
7. Quick Reference
| What You See | Meaning | Action |
|---|---|---|
| 🔴 Extra High + candle with trend | Very strong momentum with trend | Enter / hold with high confidence |
| 🔴 Extra High + candle against trend | Possible climax / exhaustion | Prepare for reversal, tighten SL |
| 🟠 High at breakout | Breakout has real momentum | Confirm entry |
| 🟡 Medium sustained | Healthy trend | Hold position |
| 🩵 Low prolonged | Market compression | Wait for breakout, avoid ranging trades |
| Volume declining in a trend | Trend is weakening | Prepare to exit |
Recommended Companion Indicator
Recommended Companion Toolkits
1. One-Click Trade Panel ⭐ HIGHLY RECOMMENDED
Why you need it: When a signal fires, speed matters. The indicator shows you the entry price and SL/TP levels, but manually typing lot size, SL, and TP into the order window costs precious seconds — especially on M1–M15 where price moves fast.
2. Trailing Stop & Breakeven Manager ⭐ RECOMMENDED
Why you need it: The indicator draws 3 TP levels for a reason — the strategy works best when you scale out gradually. But manually moving SL to breakeven at TP1, then trailing behind swings toward TP2 and TP3, requires constant chart monitoring. This is impractical if you trade multiple pairs or cannot watch the screen non-stop.
3. Trade Journal & Dashboard 📋 NICE TO HAVE
