Volume is an important factor in technical analysis. This innovative indicator provides cumulative volume for each zigzag swing. This can help understand how much conviction is there in each swing. You can find the relative strength by comparing it to previous swing volumes.
Link to the Indicator: Zigzag Volume Bars
Back to our favourite topic - Zigzags
Bar Style can be
- Regular: Green bars for upswing volume and red bars for downswing volume. A moving average can be applied to this type of display
- Plus/Minus - Stacked: Both upswing and downswing will have positive and negative volume bars stacked on each other. If the first bar is green or red depends on the stacking style.
- Plus/Minus - Overlapping: Both positive and negative volume bars are shown. But, both start from zero and overlap each other.
- Plus/Minus - Opposite Sides: Positive volume is shown from 0 to upside whereas negative volume bars are shown from 0 to downwards.
Stack Style is applied when the bar style is Plus/Minus - Stacked. They can be of the following types.
- Direction-Based: Up volume bars are placed first during an upswing but down volume bars are placed first during a downswing.
- Green-First: Up Volume bar is always placed first
- Red-First: Down Volume bar is always placed first
- Highest-First: Bar with the highest portion of volume is placed first
- Lowest-First: Bar with the lowest portion of the volume is placed first.
There is also option to apply moving average for two types of Bar Styles - Regular and Plus/Minus - Opposite Sides
Below chart snapshots show how the indicator looks with different settings and combinations of styles.
Here are the display highlights of different stack style options