AI Volume Candles

Overview

AI Volume Candles is a sophisticated visualization feature within the Lune Institutional Analysis suite that leverages artificial intelligence and lower timeframe analysis to identify significant volume concentrations within individual price bars. Unlike standard candles that only show price movement, this feature analyzes volume at a granular depth to reveal the "internal anatomy" of a candle.

By identifying specific price levels where institutional buying or selling pressure is concentrated, traders can visualize the exact areas where market participants are active. This provides critical insights into:

• Institutional Activity: Detecting where large-scale orders are being filled.

• Trapped Liquidity: Identifying price levels where traders may be stuck in losing positions.

• Volume Imbalances: Visualizing the net delta (buy vs. sell pressure) at specific price bins.

Settings

Traders can customize the AI Volume Candles to match their specific market context and required level of detail.

Core Visualization

Setting	Description
AI Volume Candles	Enables or disables the AI-powered volume delta candle visualization.
Sensitivity	Controls the threshold for level detection (1–5). Lower values show only the strongest signals, while higher values provide maximum detail.
Show Volume Delta Zones	Displays colored zones indicating high-significance volume concentrations.
Show Net Volume Lines	Plots lines at price points where volume is highly concentrated but directionally balanced (Neutral).

Advanced & Technical Settings

Setting	Description
Premium+ Features	When enabled, utilizes sub-1-minute timeframe analysis for enhanced accuracy. Requires a TradingView Premium plan.
Adaptive Transparency	Dynamically adjusts the opacity of zones based on their volume significance; stronger signals appear more opaque.
Bull/Bear/Neutral Colors	Customizes the colors for bullish delta (buying), bearish delta (selling), and neutral volume levels.

Best Practices & Usage

• Identify Institutional "Footprints": Use the Volume Delta Zones to see where institutions are heavily entering. A bullish zone at the bottom of a wick often indicates strong absorption of selling pressure by major buyers.

• Watch Neutral Net Volume Lines: Net Volume Lines represent areas of high activity where neither side has gained control yet. These often act as "magnets" for price or key breakout points once the balance shifts.

• Filter with Sensitivity:

  • Scalpers: Use a higher sensitivity (4–5) to see every minor volume cluster that might offer short-term support or resistance.

  • Swing Traders: Use lower sensitivity (1–2) to filter out market noise and focus only on the most significant institutional price levels.

• Detect Trapped Traders: If a candle shows a strong Bearish Volume Zone at the very top of a candle that then closes as a bullish "pin bar," it suggests sellers are trapped, often leading to a rapid move upward as they are forced to cover.

• Timeframe Optimization: For the most accurate data, ensure Premium+ Features are toggled on if you are on a compatible TradingView plan, as this allows the indicator to use seconds-based data for binning calculations.