HyperDive

Volume Contraction and Expansion

A simple indicator that shows volume expansion and contraction of a trend through colorization of the candles. It indicates the underlying volume support of a trend. This indicator might come in handy for any Elliott Wave analyst trying to incorporate volume into his analysis.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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Comments

Some pointers on how to use this indicator. Consecutive red candles indicate that the trend is strong (both up or down). In a trending market blue candles should always be corrective. In lower degree a corrective structure should be visible within those blue candles. This indicates a healthy trend and there is a higher probability that the higher degree trend is likely to continue.
But when a market trends with consecutive blue candles, that could be interpreted as a sign of weakness.This could also be a fake out or a squeeze.
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