AI Volume Candles

Overview#

AI Volume Candles is a visualization feature in the Lune Institutional Analysis suite. It uses AI and lower timeframe analysis to find volume concentrations within individual price bars. Standard candles show only price movement. This feature analyzes volume at a granular depth to reveal the internal anatomy of a candle.

By finding price levels where institutional buying or selling pressure is concentrated, you can see the areas where market participants are active. This gives insight into:

• Institutional activity: Where large-scale orders are being filled.
• Trapped liquidity: Price levels where traders may be stuck in losing positions.
• Volume imbalances: The net delta (buy vs. sell pressure) at specific price bins.

Settings#

You can customize AI Volume Candles to match your market context and the level of detail you need.

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 more detail with more levels, while higher values show only the strongest levels.
Show Volume Delta Zones	Displays colored zones for high-significance volume concentrations.
Show Net Volume Lines	Plots lines at price points where volume is concentrated but directionally balanced (Neutral).

Advanced and technical settings#

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

Best practices and 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 shows strong absorption of selling pressure by major buyers.
• Watch neutral net volume lines: Net Volume Lines mark areas of high activity where neither side has gained control. These often act as magnets for price, or as breakout points once the balance shifts.
• Filter with sensitivity:
  • Scalpers: Use a lower sensitivity (1, 2) to see minor volume clusters that may offer short-term support or resistance.
  • Swing traders: Use higher sensitivity (4, 5) to filter out noise and focus on the strongest institutional price levels.
• Detect trapped traders: If a candle shows a strong bearish volume zone at the very top and then closes as a bullish pin bar, sellers may be trapped. This often leads to a rapid move upward as they cover.
• Timeframe optimization: For the most accurate data, toggle Premium+ Features on if you are on a compatible TradingView plan. This lets the indicator use seconds-based data for binning calculations.