Volume Sentiment Breakout Channels

The script builds on two layers of logic: • Channel Detection: A volatility-based algorithm locates price compression areas using normalized highs and lows over a defined lookback. These “boxes” mark accumulation or distribution ranges. • Volume Sentiment Profiling: Each channel is internally divided into small bins, where volume is aggregated and signed by candle direction. This produces a granular sentiment map showing which levels are dominated by buyers or sellers. When a breakout occurs, the script clears the previous box and forms a new one, letting traders visually track transitions between phases of control. The colored gradients and text updates continuously reflect the internal bias—green for net-buying, red for net-selling—so you can see conviction strength at a glance.

• Setup: Add the script to your chart and enable Strong Closes Only if you prefer cleaner breakouts. Use shorter normalization length (e.g., 50–80) for fast markets; longer (100–200) for smoother transitions. • Read Signals: Transparent boxes mark active sentiment channels. Green gradients show buy-side dominance, red shows sell-side. The middle dashed line is the equilibrium of the channel. “▲” appears when price breaks upward, “▼” when it breaks downward. • Understanding Sentiment: The sentiment profile can be used to show the probability of the price moving up or down at respective price levels.