Without diving into details, bars with low and serious are aprox. areas of possible future reversals/pullbacks, while volumeless high moves should not cause any serious stops in price action.
This is just a small easy script to highlight this process. "Mathematically speaking, it's just a reciprocal of quotient of awfewefaffwqg..... Nah, not this time.
HOW IT WORKS:
Density = 1/(range/ )
We take range of a bar (high minus low), divide it by of the same bar, in order to neutralize this "bigger-bigger" relationship. Then we memorize this number, take 1 and divide 1 by this number, in order to inverse the result. So now, small bars with big will be rated higher than just by using classic histogram.
I suppose it would be easy to use it along with classic histogram, and assess the differences between these 2 histograms.
Probs some1 has already posted smth like this before idk, but if it aint the case, here it is, for you.
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.