Price × Volume Strength (With Histogram Label)

🔍 Overview
This indicator blends price momentum with relative volume strength to assess the efficiency and conviction of market moves in real time. Unlike traditional price or volume indicators that operate independently, this tool evaluates whether price movements are backed by meaningful volume — a crucial filter for avoiding weak breakouts and fakeouts.

It also marks the transition points where volume begins to confirm a price move during a live candle, giving you early entry or reinforcement signals.

⚙️ How It Works
At each bar:

Price % Change is calculated as:

Close
−
Close[1]
Close[1]
×
100
Close[1]
Close−Close[1]
​
×100
Volume Strength is computed as:

Current Volume
EMA of Volume (length = 20)
EMA of Volume (length = 20)
Current Volume
​

The Efficiency Ratio is calculated as:

Price Change %
×
Volume Strength
Price Change %×Volume Strength
This tells you not just how much price moved, but how efficiently it did so relative to the market's typical volume behavior.

🎨 Color Logic
Each histogram bar is colored dynamically based on both price direction and volume strength:

Price Direction Volume Strength Color Interpretation
Up < 1 (weak) 🟠 Orange Cautious up move — weak volume
Up ≥ 1 (strong) 🟢 Green Bullish strength confirmed
Down < 1 (weak) 🔵 Blue Cautious down move — weak selling pressure
Down ≥ 1 (strong) 🔴 Red Bearish strength confirmed

When volume transitions from weak to strong during a bar, a "VOL↑" label appears on the bar, signaling the moment when conviction enters the market.

✅ How to Use It
📌 Entry Confirmation
Look for green or red histogram bars for confirmed directional conviction

Use the "VOL↑" label to anticipate real-time volume confirmation during a bar

Ideal for breakout traders and momentum scalpers to confirm a move has “weight” behind it

⚠️ Avoiding Fakeouts
Orange or blue bars warn of potentially unsustainable moves

If price is breaking a level but volume is weak (orange/blue), be cautious

📉 Fade Trades
Blue bars on a bounce or orange bars on a spike = potential fade opportunity if volume fails to pick up

🛠️ Customization Ideas
Adjust EMA length to suit your time frame (e.g., 10 for fast, 30 for swing)

Add alerts on "VOL↑" label appearance to automate signal detection

Combine with structure-based tools (e.g., support/resistance or VWAP) for higher confluence

🧠 Why It Matters
This indicator helps you filter noise, avoid premature entries, and confirm that moves are backed by real trading interest. It reflects market participation, not just price motion — which is essential in today’s algo-driven, volume-sensitive environments.