ATM Bar Validation

The Bar Validation Indicator is a powerful tool designed to enhance chart reading by combining Volume Spread Analysis (VSA) principles with precise volume location. This indicator identifies the position of significant volume spikes within the pointed price bar, using lower timeframes to offer deeper insights into market behaviour. It helps traders find key price levels and volume relationships that are often invisible in the analysed timeframe.
ATM Bar Validation indicator helps to understand how the bar in question was formed or, in other words, where professionals bought/sold during the bar. By automatically selecting the lowest available timeframe called validation timeframe, this indicator finds and displays on the chart the position of the highest found volume spike, the volume spikes that are bigger than specified in settings percentage of the highest one and the absolute values of those spikes.
Key features:
- Automatic or manual selection of the lower timeframe to scan spikes on
- Displays high and low prices of the lower timeframe’s bar with the biggest volume over the time of the analysed bar
- Displays highs and lows of all lower timeframe’s bars with volume less than the one on the biggest spike but bigger than the specified in the settings percentage of the biggest spike volume
- Shows the volume of each spike displayed.
This indicator improves chart reading and in many cases can prevent a trader from taking bad trading decisions.