Intraday Volume Rating [Honestcowboy]

The Intraday Volume Rating aims to provide a clearer picture of what volume is telling you on intraday charts.

What is different to other forms of volume analysis

While Volume averages and other measures of volume base their calculations on the previous bars on the chart (for example bars 1954 to 1968). The average volume in this indicator measures expected volume during that time of the day.

🔷 Why would you take this approach?

Markets behave different during certain times of the day, also called sessions.
Here are a couple examples.

• Asian Session (generally low volatility)
  
• London Session (bigger volatility starts)
  
• New York Session (overlap of New York with London creates huge volatility)
  

Generally when using other types of volume averaging it does not take into account these sessions and that the market has a pattern for volume in an intraday chart.

🔷 CALCULATION

Think of this script like an average of volume but instead it uses past days data instead of previous bars data.
This is a chart explaining the indicator this script is based on The same principle applies but instead we measure volume at each bar of the day.

The script also counts the number of bars that exist in a day on your current timeframe chart. After knowing that number it creates the matrix used in it's calculations and data storage.

See how it works perfectly on a lower timeframe chart below:

Getting this right was the hardest part, check the coding if you are interested in this type of stuff. I commented every step in the coding process.

Every setting of the script is commented so no need for further explanation, enjoy!