Volume-Based Candle Shading Pro [LTS]

Overview
Volume-Based Candle Shading Pro [LTS] is a visual aid that highlights how “unusual” each bar’s volume is compared to recent activity. It adjusts candle colors based on whether volume is above, below, or near its average, helping you quickly spot high-activity pushes and quiet rotations on any symbol or timeframe.

How it works
For each bar, the script calculates a simple moving average of volume over a user-defined lookback. It then compares the current bar’s volume to that average.

Bullish candles start from a bullish base color, and bearish candles from a bearish base color. Depending on the volume ratio, that base color is blended toward a “high volume mix” color when volume is elevated, or toward a “low volume mix” color when volume is muted. The strength of the blend increases as the bar’s volume moves further away from the average, so extreme volume stands out visually while average bars remain close to the base colors.

Colors are applied with the built-in [icode]barcolor()[/icode] function, so the indicator only affects candle appearance; it does not modify price, volume, or any other chart values.

Inputs

• Bullish Base Color / Bearish Base Color
  Primary colors used for up and down candles when volume is close to its average.
  
  
• High Volume Mix Color
  Color that is blended into the base color when volume is above its moving average. This is typically chosen as a darker or more intense shade to make heavy-volume bars stand out.
  
  
• Low Volume Mix Color
  Color that is blended into the base color when volume is below its moving average. Many users choose a lighter shade to visually de-emphasize low-participation bars.
  
  
• Volume MA Length
  Number of previous bars used to compute the average volume. Shorter lengths make the shading respond more quickly to recent changes in activity; longer lengths provide a smoother, more stable baseline.
  

Typical use cases

• Highlighting high-volume breakouts, breakdowns, or rejection candles without adding extra panels or indicators.
  
• Distinguishing between strong, well-participated moves and low-volume drifts that may be less significant.
  
• Combining with your existing price-action tools to visually filter which candles deserve more attention based on relative volume.
  

All calculations are based on historical volume and the current bar only; the script does not use future data or repaint past candles. It is intended as a visual aid and should be combined with your own analysis and risk management.