improved volumeIt is an indicator that displays the trading volume.
Red-colored candle bars indicate a decrease in trading volume.
Green-colored candle bars indicate an increase in trading volume.
The transparent yellow cloud above the volume bars represents the 21-bar moving average volume, which shows the average volume over the specified period. (You can change the number of bars and the type of moving average from the indicator settings.)
This allows for easier comparison between the current trading volume and the average volume.
In the price scale section, there are 4 target levels. They represent the following in ascending order: Average volume, Average volume multiplied by 2, Average volume multiplied by 3, Average volume multiplied by 4.
Additionally, you can use the alarm feature based on these average volume levels.
Volume
PriceCatch-Intraday VolumeHi TV Community,
Greetings to you.
This is a script that may be of use to intra-day traders. Knowing how much volume is getting traded and in which direction can help with decision-making in trading - especially when trading Futures.
So, this script, displays volume, number of candles and trades on intra-day time-frames.
FUTURES CHART
NOTE: The instrument must contain volume information for this script to work.
Number of trades will be accurate on Futures Chart because Volume / lot-size will give number of trades on a specific time-interval. For cash chart, please ignore this value.
Please use this script on Intra-day time-frame only.
Hope this script may be of use to you. All the best.
Comments/queries welcome.
PriceCatch
PS: As always with trading you and you alone are responsible for your actions and the profits/losses resulting from your trading activity.
1 min Volume Flow Indicator (VFI) with EMA ribbonOriginally Markos Katsanos' indicator that LazyBear made popular here on TW. Now updated to Pine Script version 5, which makes multi-timeframe charting easier.
The initial Katsanos' idea for the indicator is the following:
"The VFI is based on the popular On Balance Volume (OBV) but with three very important modifications:
Unlike the OBV, indicator values are no longer meaningless. Positive readings are bullish and negative bearish.
The calculation is based on the day’s median instead of the closing price.
A volatility threshold takes into account minimal price changes and another threshold eliminates excessive volume. ...
A simplified interpretation of the VFI is that values above zero indicate a bullish state and the crossing of the zero line is the trigger or buy signal.
The strongest signal with all money flow indicators is of course divergence.
The classic form of divergence is when the indicator refuses to follow the price action and makes lower highs while price makes higher highs (negative divergence). If price reaches a new low but the indicator fails to do so, then price probably traveled lower than it should have. In this instance, you have positive divergence."
I set up default settings for intraday trading I personally have found the most useful. And what I have found useful is how and which volume flows in and out on 1 min chart. For 1 min volume flow I find it convenient to have specific EMAs as guidance: 360, 720, 1440, 2160, 2880, 3600, 4320 -- the logic is derived from how many minutes there are per specific hours and days. Since short term trends typically last for three days, 1440 and 4320 EMAs are the ones I myself concentrate the most. That is to say, quite often 1min volume flow pivots around 1440 and 4320 EMAs.
If you want to see 1 min volume flow on some other timeframe than 1 min, change the timeframe in the settings.
Swing Volume Profiles [LuxAlgo]The Swing Volume Profiles indicator aims to calculate and highlight trading activity at specific price levels between two swing points; allowing traders to reveal dominant and/or significant price levels based on volume.
By measuring traded volume at all price levels in the market over a specified time period, the script can also be used to detect some key analysis generally such as supply & demand, buy-side & sell-side liquidity levels, unfilled liquidity voids, and imbalances that can highlight on the chart.
🔶 USAGE
A volume profile is an advanced charting tool that displays the traded volume at different price levels over a specific period. It helps you visualize where the majority of trading activity has occurred.
Key Levels are the areas where the volume is concentrated or where there are significant volume spikes. These levels are known as key support and resistance levels. High-volume nodes indicate areas of high activity and are likely to act as support or resistance in the future.
Volume profile also helps identify value areas, which represent the price levels where the most trading activity has taken place. These levels can act as areas of support or resistance as traders perceive them as fair value.
The Point of Control describes the price level where the most volume was traded. A Naked Point of Control (also called a Virgin Point of Control) is a previous POC that has not been traded. Extending PoC options 'Until Bar Cross' or 'Until Bar Touch' helps in identifying Naked Point of Control Lines.
Previous PoC levels can serve as support and resistance for future price movements. Extending PoC Level 'Until Last Bar' option will help to identify such levels.
🔶 DETAILS
One of the unique features of the script is its ability to detect some other key levels such as levels of acceptance and rejection.
Levels of rejection we may summarize as supply and demand levels, these are also referred to as buy-side and sell-side liquidity levels. They usually occur at extreme highs or lows, where prices may be too high for buyers (high supply, low demand) or too low for sellers (low supply, high demand)
Levels of acceptance are the levels where Liquidity Voids occur, these are also referred to imbalances. Liquidity voids are sudden changes in price when the price jumps from one level to another. The peculiar thing about liquidity voids is that they almost always fill up, so we call them levels of acceptance.
🔶 ALERTS
When an alert is configured, the user will have the ability to be notified in case:
Point Of Control Line is touched/crossed
Value Area High Line is touched/crossed
Value Area Low Line is touched/crossed
🔶 SETTINGS
🔹 Display Options
Mode: Controls the lookback length of detection and visualization, where Present assumes last X bars specifid in '# Bars' option and Historical assumes all data available to the user as well as allowed limits of visiual objects (boxs, lines, labels etc)
# Bars: Controls the lookback length.
🔹 Swing Volume Profiles
The script takes into account user-defined parameters and plots volume profiles. Due to Pine Script™ drwaing objects limit only total volume profiles are presented.
Swing Detection Length: Lookback period
Swing Volume Profiles: Toggles the visibility of the Volume Profiles, with color options to differentiate the Value Area within a profile.
Profile Range Background Fill: Toggles the visibility of the Volume Profiles Range
🔹 Point of Control (PoC)
Point of Control (POC) – The price level for the time period with the highest traded volume
Point of Control (PoC): Toggles the visibility of the Point of Control
Developing PoC: Toggles the visibility of the Developing PoC
Extend PoC: Option that allows detecting virgin PoC levels. Virgin Point of Control (VPoC) is defined as a Point of Control that has never been revisited or touched. The option also allows PoC levels to extend till the last bar aiming to present levels from history where the levels were traded significantly and those levels can be used as support and resistance levels.
🔹 Value Area (VA)
Value Area (VA) – The range of price levels in which the specified percentage of all volume was traded during the time period.
Value Area Volume %: Specifies percentage of the Value Area
Value Area High (VAH): Toggles the visibility of the Value Area High, the highest price level within the Value Area
Value Area Low (VAL): Toggles the visibility of the Value Area Low, the lowest price level within the Value Area
Value Area (VA) Background Fill: Toggles the visibility of the Value Area Range
🔹 Liquidity Levels / Voids
Unfilled Liquidity, Thresh: Enable display of the Unfilled Liquidity Levels and Liquidity Voids, where threshold value defines the significance of the level.
🔹 Profile Stats
Position, Size: Specifies the position and the size of the label presenting Profile Stats, the tooltip of the label includes all related info for each profile.
Price, Price Change, and Cumulative Volume: Enable display of the given options on the chart.
🔹 Volume Profile Others
Number of Rows: Specify how many rows each histogram will have. Caution, having it set to high values will quickly hit Pine Script™ drawing objects limit and may cause fewer historical profiles to be displayed.
Placement: Place profile either left or right.
Profile Width %: Alters the width of the rows in the histogram, relative to the calculated profile length.
🔶 RELATED SCRIPTS
Alternative Liquidity Void Detection script, Buyside-Sellside-Liquidity
T3 JMA KAMA VWMAEnhancing Trading Performance with T3 JMA KAMA VWMA Indicator
Introduction
In the dynamic world of trading, staying ahead of market trends and capitalizing on volume-driven opportunities can greatly influence trading performance. To address this, we have developed the T3 JMA KAMA VWMA Indicator, an innovative tool that modifies the traditional Volume Weighted Moving Average (VWMA) formula to increase responsiveness and exploit high-volume market conditions for optimal position entry. This article delves into the idea behind this modification and how it can benefit traders seeking to gain an edge in the market.
The Idea Behind the Modification
The core concept behind modifying the VWMA formula is to leverage more responsive moving averages (MAs) that align with high-volume market activity. Traditional VWMA utilizes the Simple Moving Average (SMA) as the basis for calculating the weighted average. While the SMA is effective in providing a smoothed perspective of price movements, it may lack the desired responsiveness to capitalize on short-term volume-driven opportunities.
To address this limitation, our T3 JMA KAMA VWMA Indicator incorporates three advanced moving averages: T3, JMA, and KAMA. These MAs offer enhanced responsiveness, allowing traders to react swiftly to changing market conditions influenced by volume.
T3 (T3 New and T3 Normal):
The T3 moving average, one of the components of our indicator, applies a proprietary algorithm that provides smoother and more responsive trend signals. By utilizing T3, we ensure that the VWMA calculation aligns with the dynamic nature of high-volume markets, enabling traders to capture price movements accurately.
JMA (Jurik Moving Average):
The JMA component further enhances the indicator's responsiveness by incorporating phase shifting and power adjustment. This adaptive approach ensures that the moving average remains sensitive to changes in volume and price dynamics. As a result, traders can identify turning points and anticipate potential trend reversals, precisely timing their position entries.
KAMA (Kaufman's Adaptive Moving Average):
KAMA is an adaptive moving average designed to dynamically adjust its sensitivity based on market conditions. By incorporating KAMA into our VWMA modification, we ensure that the moving average adapts to varying volume levels and captures the essence of volume-driven price movements. Traders can confidently enter positions during periods of high trading volume, aligning their strategies with market activity.
Benefits and Usage
The modified T3 JMA KAMA VWMA Indicator offers several advantages to traders looking to exploit high-volume market conditions for position entry:
Increased Responsiveness: By incorporating more responsive moving averages, the indicator enables traders to react quickly to changes in volume and capture short-term opportunities more effectively.
Enhanced Entry Timing: The modified VWMA aligns with high-volume periods, allowing traders to enter positions precisely during price movements influenced by significant trading activity.
Improved Accuracy: The combination of T3, JMA, and KAMA within the VWMA formula enhances the accuracy of trend identification, reversals, and overall market analysis.
Comprehensive Market Insights: The T3 JMA KAMA VWMA Indicator provides a holistic view of market conditions by considering both price and volume dynamics. This comprehensive perspective helps traders make informed decisions.
Analysis and Interpretation
The modified VWMA formula with T3, JMA, and KAMA offers traders a valuable tool for analyzing volume-driven market conditions. By incorporating these advanced moving averages into the VWMA calculation, the indicator becomes more responsive to changes in volume, potentially providing deeper insights into price movements.
When analyzing the modified VWMA, it is essential to consider the following points:
Identifying High-Volume Periods:
The modified VWMA is designed to capture price movements during high-volume periods. Traders can use this indicator to identify potential market trends and determine whether significant trading activity is driving price action. By focusing on these periods, traders may gain a better understanding of the market sentiment and adjust their strategies accordingly.
Confirmation of Trend Strength:
The modified VWMA can serve as a confirmation tool for assessing the strength of a trend. When the VWMA line aligns with the overall trend direction, it suggests that the current price movement is supported by volume. This confirmation can provide traders with additional confidence in their analysis and help them make more informed trading decisions.
Potential Entry and Exit Points:
One of the primary purposes of the modified VWMA is to assist traders in identifying potential entry and exit points. By capturing volume-driven price movements, the indicator can highlight areas where market participants are actively participating, indicating potential opportunities for opening or closing positions. Traders can use this information in conjunction with other technical analysis tools to develop comprehensive trading strategies.
Interpretation of Angle and Gradient:
The modified VWMA incorporates an angle calculation and color gradient to further enhance interpretation. The angle of the VWMA line represents the slope of the indicator, providing insights into the momentum of price movements. A steep angle indicates strong momentum, while a shallow angle suggests a slowdown. The color gradient helps visualize this angle, with green indicating bullish momentum and purple indicating bearish momentum.
Conclusion
By modifying the VWMA formula to incorporate the T3, JMA, and KAMA moving averages, the T3 JMA KAMA VWMA Indicator offers traders an innovative tool to exploit high-volume market conditions for optimal position entry. This modification enhances responsiveness, improves timing, and provides comprehensive market insights.
Enjoy checking it out!
---
Credits to:
◾ @cheatcountry – Hann Window Smoothing
◾ @loxx – T3
◾ @everget – JMA
Combined Spot Volume | Crypto v1.1 [kAos]This script combines the "ticker volume" from 9 different exchanges. The default settings are for Crypto Assets only. In the settings window you can choose to plot the "combined volume" in a histogram form or "individual exchange volume" in an area view. (as shown on the chart) Addition to the plots there is also an Info Table in the bottom right corner that brakes down the volume to individual exchanges, shows how much volume was traded on which exchange. If the Table shows "NaN" on an exchange you need to check the spelling of that exchange, if thats correct, than the ticker is not available on that exchange.
On-Balance Accumulation Distribution (Volume-Weighted)The On-Balance Accumulation Distribution (OBAD) indicator is designed to analyze the accumulation and distribution of assets based on volume-weighted price movements. The indicator helps traders identify periods of buying and selling pressure and assess the strength of market trends. By incorporating volume and price data, the OBAD indicator provides valuable insights into the flow of funds in the market.
To calculate the OBAD, the indicator multiplies the volume, price, and volume factor (user-defined) with the price change and aggregates the values over a specified length. This results in a histogram and a line plot representing the OBAD values. The OBAD signal line is derived by applying a simple moving average (SMA) to the OBAD values over a shorter period (9 by default). The crossover of the OBAD line and signal line can indicate potential entry or exit points.
The OBAD indicator utilizes coloration to enhance its visual representation and interpretation. The OBAD background is colored based on the relationship between the OBAD values and the OBAD signal line. When the OBAD values are above the signal line, the background is displayed in lime, suggesting a bullish accumulation scenario. Conversely, when the OBAD values are below the signal line, the background is colored fuchsia, indicating a bearish distribution pattern. The bar coloration is also applied to provide further visual cues, with lime representing bullish conditions and fuchsia denoting bearish conditions. When the OBAD signal line is above 0, it is colored green. Conversely, if the signal line is below 0, it is colored maroon.
The length parameter in the OBAD indicator determines the number of periods used in the calculation. Shorter lengths, such as 10 or 20, can make the indicator more responsive to recent price and volume changes, providing quicker signals. This can be beneficial for short-term traders or in fast-paced markets. Conversely, longer lengths, such as 50 or 100, smooth out the indicator and provide a broader view of accumulation and distribution over a more extended period. This may suit longer-term traders or when analyzing trends in less volatile markets. Traders should experiment with different lengths to find the optimal balance between responsiveness and smoothness that aligns with their trading goals.
The volume factor parameter allows traders to adjust the weighting of volume in the OBAD calculation. By modifying this factor, traders can emphasize the impact of volume on the indicator. Increasing the volume factor amplifies the influence of volume in the OBAD calculation, making it more sensitive to volume changes. This can be advantageous when volume is considered a significant driver of price movements, such as during news events or market catalysts. On the other hand, decreasing the volume factor reduces the impact of volume, making the indicator less sensitive to volume fluctuations. Traders can experiment with different volume factors to align the indicator's responsiveness with their analysis of volume patterns and its importance in their trading decisions.
The signal line period parameter determines the number of periods used to calculate the moving average of the OBAD values. Adjusting this parameter can help smooth out the indicator and filter out short-term noise or provide more timely signals. A shorter signal line period, such as 5 or 7, provides more sensitive and frequent crossovers with the OBAD values, potentially offering early entry or exit signals. This can be useful for traders seeking shorter-term trades or more agile trading strategies. Conversely, a longer signal line period, such as 9 or 14, smooths out the indicator and provides more stable signals. This may suit traders who prefer longer-term trends or a more conservative approach. Traders should consider their trading timeframe and the desired balance between responsiveness and stability when adjusting the signal line period.
The OBAD indicator can be applied in various trading strategies and scenarios. It helps traders identify potential trend reversals, confirm existing trends, and generate entry and exit signals. For example, when the OBAD histogram transitions from fuchsia to lime, it may suggest a shift from selling to buying pressure, signaling a potential buying opportunity. Traders can also use the OBAD indicator in conjunction with other technical analysis tools, such as trendlines or support/resistance levels, to confirm signals and make more informed trading decisions.
-- Trend Reversal Identification : The OBAD indicator can be useful in identifying potential trend reversals. When the OBAD values cross above the signal line after being below it, it may suggest a shift from bearish distribution to bullish accumulation. Conversely, when the OBAD values cross below the signal line after being above it, it may indicate a transition from bullish accumulation to bearish distribution. Traders can use these crossovers as potential signals to enter or exit trades in anticipation of a trend reversal.
-- Confirmation of Trend Strength : The OBAD indicator can act as a confirmation tool for assessing the strength of existing trends. When the OBAD values remain consistently above the signal line, it confirms the presence of strong bullish accumulation and validates the upward trend. Similarly, when the OBAD values stay consistently below the signal line, it confirms the presence of strong bearish distribution and validates the downward trend. Traders can use this confirmation to have more confidence in the prevailing trend and adjust their trading strategies accordingly.
-- Divergence Analysis : Divergence between the price and the OBAD indicator can provide valuable insights. Bullish divergence occurs when the price forms lower lows while the OBAD indicator forms higher lows, suggesting a potential trend reversal to the upside. Conversely, bearish divergence occurs when the price forms higher highs while the OBAD indicator forms lower highs, indicating a potential trend reversal to the downside. Traders can use these divergences as additional confirmation signals in their trading decisions.
-- Volume Analysis : The OBAD indicator incorporates volume data, making it particularly useful for volume analysis. Traders can analyze the relationship between OBAD values and volume levels to gauge the strength and validity of price movements. Higher OBAD values accompanied by higher volume can indicate strong accumulation or distribution, providing confirmation for potential trade setups. On the other hand, lower OBAD values accompanied by low volume may suggest a lack of participation and potentially signal caution in trading decisions.
It is important to note that the OBAD indicator, like any other technical indicator, has certain limitations. It relies on historical price and volume data, which may not always accurately reflect current market conditions or future price movements. Traders should exercise caution and use the OBAD indicator in conjunction with other analysis techniques and risk management strategies. Additionally, customization of the OBAD parameters, such as adjusting the length or volume factor, can provide flexibility to adapt the indicator to different market conditions and trading preferences.
Overall, the OBAD indicator serves as a valuable tool for traders to gauge the accumulation and distribution patterns in the market. Its calculation based on volume-weighted price movements and the coloration enhancements make it visually appealing and intuitive to interpret. By incorporating the OBAD indicator into trading strategies and considering its limitations, traders can potentially improve their decision-making process and enhance their trading outcomes.
Moving Averages + BB & R.VWAP StDev (multi-tf)█ Moving Averages + Bollinger Bands and Rolling Volume Weighted Average Price with Standard Deviation Bands (Multi Timeframe)
Multiple moving averages can be independently applied.
The length , type and timeframe of each moving average are configurable .
The lines and colors are customizable too.
This script can display:
Moving Averages
Bollinger Bands
Rolling VWAP and Standard Deviation Bands
Types of Moving Averages:
Simple Moving Average (SMA)
Exponential Moving Average (EMA)
Smoothed Moving Average (SMMA)
Weighted Moving Average (WMA)
Volume Weighted Moving Average (VWMA)
Least Squares Moving Average (LSMA)
Hull Moving Average (HMA)
Arnaud Legoux Moving Average (ALMA)
█ Moving Average
Moving Averages are price based, lagging (or reactive) indicators that display the average price of a security over a set period of time.
A Moving Average is a good way to gauge momentum as well as to confirm trends, and define areas of support and resistance.
█ Bollinger Bands
Bollinger Bands consist of a band of three lines which are plotted in relation to security prices.
The line in the middle is usually a Simple Moving Average (SMA) set to a period of 20 days (the type of trend line and period can be changed by the trader, a 20 day moving average is by far the most popular).
The SMA then serves as a base for the Upper and Lower Bands which are used as a way to measure volatility by observing the relationship between the Bands and price.
█ Rolling VWAP
The typical VWAP is designed to be used on intraday charts, as it resets at the beginning of the day.
Such VWAPs cannot be used on daily, weekly or monthly charts. Instead, this rolling VWAP uses a time period that automatically adjusts to the chart's timeframe.
You can thus use the rolling VWAP on any chart that includes volume information in its data feed.
Because the rolling VWAP uses a moving window, it does not exhibit the jumpiness of VWAP plots that reset.
Based on the previous script :
VWAP Open Session Anchored by HampehThe VWAP Open Session Anchored indicator differs from traditional VWAP indicators by automatically anchoring the Volume Weighted Average Price calculation to three market session starts Morning, Evening, and Night. Each session represents a distinct time period within the trading day, offering traders and investors a more comprehensive view of the volume-weighted average price within specific sessions.
What Is the Volume-Weighted Average Price (VWAP)?
The volume-weighted average price (VWAP) is a technical analysis indicator used on intraday charts that resets at the start of every new trading session.
VWAP is important because it provides traders with pricing insight into both the trend and value of a security.
KEY TAKEAWAYS
1. The volume-weighted average price (VWAP) is a single line on intraday charts.
2. It looks similar to a moving average line but smoother.
3. VWAP represents a view of price action throughout a single day's trading session.
4. Retail and professional traders may use the VWAP to help them determine intraday price trends.
5. VWAP typically is most useful to short-term traders.
VWAP is calculated by totaling the dollars traded for every transaction (price multiplied by the volume) and then dividing by the total shares traded.
VWAP = Cumulative Typical Price x Volume/Cumulative Volume
Where Typical Price = High price + Low price + Closing Price/3
Cumulative = total since the trading session opened.
How Is VWAP Used?
VWAP is used in different ways by traders. Traders may use VWAP as a trend confirmation tool and build trading rules around it. For instance, they may consider stocks with prices below VWAP as undervalued and those with prices above it, as overvalued. If prices below VWAP move above it, traders may go long on the stock. If prices above VWAP move below it, they may sell their positions or initiate short positions.
Institutional buyers including mutual funds use VWAP to help move into or out of stocks with as small of a market impact as possible. Therefore, when they can, institutions will try to buy below the VWAP or sell above it. This way their actions push the price back toward the average, instead of away from it.
Source: www.investopedia.com
Volume accumulation [TCS] | VTAThe indicator calculates buy and sell volume values for different look-back periods, based on the high, low, close, and tick volume data of the chart.
The calculated buy and sell volume values are stored in separate variables, which represent cumulative volume values over the respective look-back periods.
It's important to note that the code provided calculates the buy and sell volume values individually for each look-back period and after sum them.
It can be useful to understand who is in control of the market based on the look-back period.
For example if the price is decreasing but the volume in the past candle are bullish it means that the trend probably will turn.
Please note that this indicator is for educational purposes only and should not be used for trading without further testing and analysis.
Leveraged Share VolumeHello everyone,
Did this quick reference indicator and figured I would share it as nothing like it exists that I could find.
What this does is it pulls leveraged share data and displays the bull share and bear share volume.
There are 5 pre-programmed shares. These include:
SPY
Pulls bull share data from: SPXL and UPRO
Pulls bear share data from: SPXU and SPXS
IWM
Pulls bull share data from: TNA
Pulls bear share data from: TZA
DIA
Pulls bull share data from: UDOW
Pulls bear share data from: SDOW
QQQ
Pulls bull share data from: TQQQ
Pulls bear share data from: SQQQ
XLE
Pulls bull share data from: ERX
Pulls bear share data from: ERY
As there continues to be more leveraged shares available (for example, AAPU, APPD, MSFT, TSLA, etc.) there is also the option to use these manual tickers as these shares become available. The image below shows the data input screen:
The indicator will default to show the data as a ratio. The ratio is calculated by the total bear shares over the total bull shares (sell to buy ratio). If you unselect the Ratio option (displayed in the image above), it will show the raw volume.
When data is displayed as a ratio, you will see the white SMA line. This will show you the average ratio over a 14 period lookback. This is customizeable under the SMA Length input (shown in the image above).
Indicator's purpose:
The aim of the indicator is to provide context as to where the current sentiment is. Its similar in concept to a put to call ratio. The idea is, the more bearish people are, the more inverse shares are being bought, the higher the ratio or raw volume for bear shares and vice versa for bullish situations.
If you would like some more contextual information about the powers of tracking this type of data for trading purposes, you can check out this idea I published about the relationship between leveraged shares and market sentiment/behaviour:
Otherwise, the indicator is pretty straight forward!
Its not meant to be anything but a reference indicator to help give you context of the current market positioning.
If you have any questions or suggestions, please feel free to leave them below.
Thank you for reading and checking out the indicator!
Safe trades everyone!
D-BoT Alpha Volume SpikeHello traders, Let me explain the code and provide an example of how to trade using this indicator.
The code you provided is a Pine Script indicator that combines multiple technical indicators, such as Supertrend, ADX, RSI, and MFI, to generate buy and sell signals. Here's a breakdown of the code:
User Settings:
The user can adjust parameters like overbought_limit, oversold_limit, volume_multiplier, volume_ma_length, volume_spike_multiple, lookback_period, and use_extremities_confirmation according to their preference.
Calculate Supertrend:
The Supertrend indicator is calculated using three different ATR lengths (supertrend_atr_period1, supertrend_atr_period2, supertrend_atr_period3) and corresponding factors (supertrend_factor1, supertrend_factor2, supertrend_factor3).
The supertrend_value1, supertrend_value2, and supertrend_value3 represent the Supertrend values, while trend_direction1, trend_direction2, and trend_direction3 indicate the trend direction (negative for downtrend, positive for uptrend).
Candle calculations:
The high and low values are checked to identify bullish and bearish candles based on specific conditions.
Volume Spikes:
Volume spikes are detected by comparing the current volume with a median volume over a specified lookback period.
If the volume exceeds a certain multiple of the median volume and the DI+ value is greater than the DI- value, an "up" signal is generated. Similarly, if the DI- value is greater than the DI+ value, a "down" signal is generated.
Additional Filters (RSI and MFI):
Relative Strength Index (RSI) and Money Flow Index (MFI) are used as additional filters.
The RSI and MFI parameters can be adjusted according to the user's preference.
The signals generated by the volume spikes are filtered based on RSI and MFI conditions.
Plotting:
The indicator plots shapes (triangles) to represent buy and sell signals.
The Supertrend lines are plotted using different colors and transparency levels based on the distance from the current price.
The "bodyMiddle" plot is used for filling the area between the Supertrend lines.
Example Trade Scenario:
Let's consider an example trade scenario using this indicator:
When the indicator generates an "up" signal (trendBuy = true), indicating a potential bullish trend, and all the confirmation conditions (RSI, MFI, Supertrend) are met, you can consider opening a long position.
Conversely, when the indicator generates a "down" signal (trendSell = true), indicating a potential bearish trend, and all the confirmation conditions are met, you can consider opening a short position.
Remember, this is just an example, and it's crucial to perform thorough analysis and consider other factors before making trading decisions. It's recommended to backtest the strategy, assess risk management, and apply appropriate position sizing techniques.
Please note that the code provided is a simplified version, and there might be additional factors and considerations specific to your trading strategy that are not included in this code. *******"I have also reviewed the following indicators, and the volume calculation approaches of my friends have been very helpful in creating this indicator: "Volume Spikes " © tradeforopp and "Volume Spikes & Growing Volume Signals With Alerts & Scanner" © FriendOfTheTrend."*******
Volume Support and Resistance*In a cutting system, from the lowest price of the red momentum to the highest price of the green momentum of the range of candles, cuts of different heights are created and the volume of transactions is calculated.
*Volumes in red and green candles each layer are calculated separately.
*The start of the candles can be from a candle other than zero.
*The maximum number of cuts for support or resistance will be separate and user-opinionated. This will help us see the most accurate support or resistance independently and quickly.
*The layer that has (1) the highest volume ratio of green to red, (2) the lowest number of red candles and (3) the highest number of green candles is considered as the best resistance and vice versa as the best support. Therefore, by changing the maximum number of cuts, we should look for the largest ratio of green to red volume for resistance and vice versa for support.
*If the current price is in the range of the momentum candle, the distance of the highest or lowest price of the momentum to hlc3 of the momentum candle will be checked.
*if you get an error message (> 500ms), reduce high_slice or loockback.
*Trading volume is formatted because it varies from very small to very large numbers in different markets and time periods.
Projected VolumeOverview
The indicator displays the expected volume up to the closing time of the session.
Calculations
The real volume is proportional to the projected volume, just as elapsed session time is proportional to entire trading session. Knowing the actual volume, the elapsed time of the session and the total time of the trading session, it is possible to find out the projected volume.
How It Works
On the last volume bar, the indicator shows the projected volume overlapped with the real volume.
How To Use
Assuming that any price movement is of little relevance if not confirmed with considerable volume, if a strong signal appears on the intraday chart but with low volume, we can overlook it as the projected volume on the daily chart is high and indicates that there is a high chance of directional movement for the day. In short, even if we have an entry signal with low volume on the intraday chart, it will still be viable to open a trade as long as on the daily chart the projected volume is high, i.e, above the moving average.
Inputs
Use 24 hours in Trading Hours input for nonstop markets, like crypto and forex, or set the specific trading hours for other market types like stocks. The projected volume will be displayed on all timeframes if the value is equal to 24. For other values it will be displayed on the 1-day chart only.
Anchored VWAP Pinch & Handoff, Intervals, and Signals"Anchored VWAP Pinch & Handoff, Intervals, and Signals" is an AVWAP toolbox for those who like to use various VWAP trading techniques. The indicator is currently comprised of the following three sections:
• The Pinch & Handoff section (shown above on chart) allows manually setting an upper and lower AVWAP (Pinch) along with an additional AVWAP (Handoff) by entering dates or by dragging the vertical anchor lines to the desired significant events on chart. Each of these three AVWAPs can also be set to show zones above and/or below by a percentage or standard deviation amount. The theory behind this method is that the upper and lower AVWAPs may act as dynamic support and resistance levels, effectively creating a price range or channel. As price moves between these two VWAP levels, it becomes squeezed or consolidated within that range. Further conjecture is that the longer the price remains within the range of the two anchored VWAP values, the higher the potential for an explosive breakout. Traders using this strategy may interpret the prolonged consolidation as a period of price compression, with the expectation that a significant move in either direction is likely to occur. Traders employing the AVWAP Pinch strategy might look for specific chart patterns or additional confirmation signals to enter a trade. For example, a breakout above the upper anchored VWAP level could trigger a long trade, while a breakdown below the lower anchored VWAP level could signal a short trade. Stop-loss orders and profit targets are typically set based on the trader's risk tolerance and the volatility of the asset. The third AVWAP (Handoff) is typically set after price has broken through the Pinch, and is used as a new level of support or resistance. The "Pinch & Handoff" phrase is believed to have been coined by Brian Shannon, who has popularized this method.
• The Intervals section (shown above on chart) is comprised of six periodic AVWAPs which cyclically reset. Their default settings are 1 Day, 2 Days, 1 Week, 1 Month, 1 Quarter, and 1 Year. They each may be set to desired period and when they are enabled the VWAPs whose periods are lower than the current chart timeframe are automatically hidden. For example a 1 Day AVWAP is not useful on a 1 Week chart so it would be hidden from that timeframe. When using AVWAPs from higher timeframes it may be helpful to set your chart to "Scale price chart only". This can be enabled by right clicking on your chart's price column and then left clicking "Scale price chart only" to enable that option.
• The Auto section (shown above on chart) is comprised of two automatic Anchored VWAPs. There are choices for setting anchors automatically based upon Highest Source, Highest Volume, Lowest Source, Lowest Volume, Pivot High, and Pivot Low. Because these two VWAPs work retroactively they are drawn with lines instead of plots. There is currently a limitation of 500 lines that may be drawn at any given time and the logic within this indicator uses a line for every bar of VWAP that is drawn, so if the combined length of both of these VWAPs exceeds 500 bars the earliest lines would disappear. For typical use of looking for the highest high in the last 50 bars or the last fractal this limitation should not be an issue.
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All of the plots have been titled including hidden plots that are generated for the AVWAP line drawings. All of the various types of AVWAP within the indicator should be available as choices within the Alert creation dialog if use of alerts is desired.
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NOTICE: This is an example script and not meant to be used as an actual strategy. By using this script or any portion thereof, you acknowledge that you have read and understood that this is for research purposes only and I am not responsible for any financial losses you may incur by using this script!
Volume-Weighted RSI with Adaptive SmoothingThis indicator is designed to provide traders with insights into the relative strength of a security by incorporating volume-weighted elements, effectively combining the concepts of Relative Strength Index (RSI) and volume-weighted averages to generate meaningful trading signals.
The indicator calculates the traditional RSI, which measures the speed and change of price movements, as well as the volume-weighted RSI, which considers the influence of trading volume on price action. It then applies adaptive smoothing to the volume-weighted RSI, allowing for customization of the smoothing process. The resulting smoothed volume-weighted RSI is plotted alongside the original RSI, providing traders with a comprehensive view of the price strength dynamics.
The line coloration in this indicator is designed to provide visual cues about the relationship between the RSI and the volume-weighted RSI. When the RSI line is above or equal to the volume-weighted RSI line, it suggests a potentially bullish condition with positive market momentum. In such cases, the line is colored lime. Conversely, when the RSI line (fuchsia) is below the volume-weighted RSI line, it indicates a potentially bearish condition with negative market momentum. The line color is set to fuchsia. By observing the line color, traders can quickly assess the relative strength between the RSI and the volume-weighted RSI, aiding their decision-making process.
The bar color and background color further enhance the visual interpretation of the indicator. The bar color reflects the RSI's relationship with the volume-weighted RSI and the predefined thresholds. If the RSI line is above both the volume-weighted RSI line and the overbought threshold (70), the bar color is set to lime, indicating a potentially overbought condition. Conversely, if the RSI line is below both the volume-weighted RSI line and the oversold threshold (30), the bar color is set to fuchsia, suggesting a potentially oversold condition. When the RSI line is between these two thresholds, the bar color is set to yellow, indicating a neutral or intermediate state. The background color, displayed with a semi-transparent shade, provides additional context by reflecting the prevailing market conditions. It turns lime if the volume-weighted RSI is above the overbought threshold, fuchsia if below the oversold threshold, and yellow if it falls between these two thresholds. This coloration scheme aids traders in quickly assessing market conditions and potential trading opportunities.
Calculations:
-- RSI Calculation : The traditional RSI is calculated based on the price movements of the asset. The up and down movements are determined, and exponential moving averages are used to smooth the values. The RSI value ranges from 0 to 100, with levels above 70 indicating overbought conditions and levels below 30 indicating oversold conditions.
-- Volume-Weighted RSI Calculation : The volume-weighted RSI incorporates the trading volume of the asset into the calculations. The closing price is multiplied by the corresponding volume, and the average is taken over a specific length. The up and down movements are smoothed using exponential moving averages to generate the volume-weighted RSI value.
-- Adaptive Smoothing : The indicator offers an adaptive smoothing option, allowing traders to customize the smoothing process of the volume-weighted RSI. By adjusting the smoothing length, traders can fine-tune the responsiveness of the indicator to changes in market conditions. Smoothing helps reduce noise and enhances the clarity of the signals.
Interpretation:
The indicator provides two main components for interpretation:
-- RSI : The traditional RSI reflects the price momentum and potential overbought or oversold conditions. Traders can look for RSI values above 70 as potential overbought signals, suggesting a possible price reversal or correction. Conversely, RSI values below 30 indicate potential oversold signals, indicating a potential price rebound or rally.
-- Volume-Weighted RSI : The volume-weighted RSI incorporates trading volume, which provides insights into the strength of price movements. When the volume-weighted RSI is above the traditional RSI, it suggests that the buying pressure supported by higher volume is stronger, potentially indicating a more reliable trend. Conversely, when the volume-weighted RSI is below the traditional RSI, it suggests that the selling pressure supported by higher volume is stronger, potentially indicating a more significant price reversal.
Potential Strategies:
-- Overbought and Oversold Signals : Traders can utilize the RSI component of the indicator to identify overbought and oversold conditions. A potential strategy is to consider taking short positions when the RSI is above 70 and long positions when the RSI is below 30. These levels can act as dynamic support and resistance areas, indicating possible price reversals.
-- Confirmation with Volume : Traders can use the volume-weighted RSI as a confirmation tool to validate price movements. When the volume-weighted RSI is above the traditional RSI, it may provide additional confirmation for long positions, suggesting stronger buying pressure. Conversely, when the volume-weighted RSI is below the traditional RSI, it may provide confirmation for short positions, indicating stronger selling pressure.
-- Trend Reversal Strategy : Watch for the volume-weighted RSI to reach extreme levels above 70 (overbought) or below 30 (oversold). Look for a reversal signal where the RSI line (green or fuchsia) crosses below or above the volume-weighted RSI line. Enter a trade when the reversal signal occurs, and the RSI line changes color. Exit the trade when the RSI line crosses back in the opposite direction or reaches the opposite extreme level.
-- Divergence Strategy : Compare the direction of the RSI line (green or fuchsia) with the volume-weighted RSI line. A bullish divergence occurs when the RSI line makes higher lows while the volume-weighted RSI line makes lower lows. A bearish divergence occurs when the RSI line makes lower highs while the volume-weighted RSI line makes higher highs. Once a divergence is identified, wait for the RSI line to cross above or below the volume-weighted RSI line as confirmation of a potential trend reversal. Consider using additional indicators or price action analysis to time the entry more accurately. Use stop-loss orders and profit targets to manage risk and secure profits.
-- Trend Continuation Strategy : Assess the overall trend direction by observing the RSI line's position relative to the volume-weighted RSI line. When the RSI line consistently stays above the volume-weighted RSI line, it indicates a bullish trend, while the opposite suggests a bearish trend. Look for temporary pullbacks within the ongoing trend where the RSI line (green or fuchsia) touches or crosses the volume-weighted RSI line. Enter trades in the direction of the dominant trend when the RSI line crosses back in the trend direction. Exit the trade when the RSI line starts to deviate significantly from the volume-weighted RSI line or when the trend shows signs of weakening through other technical or fundamental factors.
Limitations:
-- False Signals : Like any indicator, the "Volume-Weighted RSI with Adaptive Smoothing" may produce false signals, especially during periods of low liquidity or choppy market conditions. Traders should exercise caution and consider using additional confirmation indicators or tools to validate the signals generated by this indicator.
-- Lagging Nature : The indicator relies on historical price data and volume to calculate the RSI and volume-weighted RSI. As a result, the signals provided may have a certain degree of lag compared to real-time price action. Traders should be aware of this inherent lag and consider combining the indicator with other timely indicators to enhance the accuracy of their trading decisions.
-- Parameter Sensitivity : The indicator's effectiveness can be influenced by the choice of parameters, such as the length of the RSI, smoothing length, and adaptive smoothing option. Different market conditions may require adjustments to these parameters to optimize performance. Traders are encouraged to conduct thorough testing and analysis to determine the most suitable parameter values for their specific trading strategies and preferences.
-- Market Conditions : The indicator's performance may vary depending on the prevailing market conditions. It is essential to understand that no indicator can guarantee accurate predictions or consistently profitable trades. Traders should consider the broader market context, fundamental factors, and other technical indicators to complement the insights provided by the "Volume-Weighted RSI with Adaptive Smoothing" indicator.
-- Subjectivity : Interpretation of the indicator's signals involves subjective judgment. Traders may have varying interpretations of overbought and oversold levels, as well as the significance of the volume-weighted RSI in relation to the traditional RSI. It is crucial to combine the indicator with personal analysis and trading experience to make informed trading decisions.
Remember, no single indicator can provide foolproof trading signals. The "Volume-Weighted RSI with Adaptive Smoothing" indicator serves as a valuable tool for analyzing price strength and volume dynamics. It can assist traders in identifying potential entry and exit points, validating trends, and managing risk. However, it should be used as part of a comprehensive trading strategy that considers multiple factors and indicators to increase the likelihood of successful trades.
AlphaTrend - ScreenerScreener version of AlphaTrend indicator:
BUY / LONG when AlphaTrend line crosses above its 2 bars offsetted line, and there would be a green filling between them
SELL / SHORT when AlphaTrend line crosses below its 2 bars offsetted line, and filling would be red then.
Default values:
Coefficient: 1, which is the factor of the trailing ATR value
Common Period: 14, which is the length of ATR MFI and RSI
AlphaTrend default uses MFI in the calculation, and MFI (Money Flow Index) needs the volume data of the chart.
If your chart doesn't have the volume data, please select the "Change Calculation" option to use RSI instead of MFI.
Screener Panel:
You can explore 20 different and user-defined tickers, which can be changed from the SETTINGS (shares, crypto, commodities...) on this screener version.
The screener panel shows up right after the bars on the right side of the chart.
Tickers seen in green are the ones that are in an uptrend, according to AlphaTrend.
The ones that appear in red are those in the SELL signal, in a downtrend.
The numbers in front of each Ticker indicate how many bars passed after the last BUY or SELL signal of AlphaTrend.
For example, according to the indicator, when BTCUSDT appears in (3) and in GREEN, Bitcoin switched to BUY signal 3 bars ago.
High Volume Daily Warning Signal- Jesse Livermore // values are in %, so on right Y axis a value of 50 means 50% above the average volume of set length (default of 20)
These important confirming volume spurts often end the day with a 50 percent to 500 percent increase in the average daily volume of the stock. - Jesse Livermore
when daily volume increases by 50% of it average daily volume, it is a warning sign in the possible change of trend or pivotal point
you can select horizontal levels of interest
Multi-indicator by TonyMontanovThe indicator was made at the request of the subscriber of the "The trader sometimes answers"
The indicator displays:
1. Anomalous spikes in volume (i.e. the value of the volume is greater than the moving average of the volume plus a few standard deviations
2. Crossing moving averages
3. Crossing the MRSI zero line
The user can change the settings:
1. Types of moving average
2. Length sliding average
3. Number of volume standard deviations
4. Display mode
5. Index ticker
Intraday Intensity ModesIntraday Intensity Index was created by David Bostian and its use was later featured by John Bollinger in his book "Bollinger on Bollinger Bands" . It is categorically a volume indicator and considered to be a useful tool for analyzing supply and demand dynamics in the market. By measuring the level of buying and selling pressure within a given trading session it attempts to provide insights into the strength of market participants' interest and their aggressiveness in executing trades throughout the day. It can be used in conjunction with Bollinger Bands® or other envelope type indicators as a complimentary indicator to aid in trying to identify potential turning points or trends.
Intraday intensity is calculated based upon the relationship between the price change and the volume of shares traded during each daily interval. It aims to capture the level of buying or selling activity relative to the overall volume. A high intraday intensity value suggests a higher level of buying or selling pressure, indicating a more active and potentially volatile market. Conversely, a low intraday intensity value indicates less pronounced trading activity and a potentially quieter market. Overall, intraday intensity provides a concise description of the intensity of trading activity during a particular trading session, giving traders an additional perspective on market dynamics. Note that because the calculation uses volume this indicator will only work on symbols where volume is available.
While there are pre-existing versions within community scripts, none were found to have applied the calculations necessary for the various modes that are presented within this version, which are believed to be operating in the manner originally intended when first described by Bostian and again later by Bollinger. When operating in default modes on daily or lower chart timeframes the logic used within this script tracks the intraday high, low, close and volume for the day with each progressing intraday bar.
The BB indicator was included on the top main chart to help illustrate example usage as described below. The Intraday Intensity Modes indicator is pictured operating in three different modes beneath the main chart:
• The top pane beneath the main chart shows the indicator operating as a normalized 21 day II% oscillator. A potential use while in this mode would be to look for positive values as potential confirmation of strength when price tags the upper or lower Bollinger bands, and to look for negative values as potential confirmation of weakness when price tags the upper or lower Bollinger bands.
• The middle pane shows the indicator operating as an "open ended" cumulative sum of II. A potential use while in this mode would be to look for convergence or divergence of trend when price is making new highs or lows, or while price is walking the upper or lower Bollinger bands.
• The bottom pane shows the indicator operating in standard III mode, which provides independent values per session.
Indicator Settings: Inputs tab:
Osc Length : Set to 1 disables oscillation, values greater than 1 enables oscillation for II% (Intraday Intensity percent) mode.
Tootip : Hover mouse over (i) to show recommended example Settings for various modes.
Cumulative : When enabled values are cumulatively summed for the entire chart and indicator operates in II mode.
Normalized : When enabled a rolling window of Osc Length values are summed and normalized to the rolling window's volume.
Intrabar : When enabled price range and volume are evaluated for intensity per bar instead of per day which is a departure from the original
concept. Whenever this setting is enabled the indicator should be regarded as operating in an experimental mode.
Colors For Up Down : Sets the plot colors used, may be overridden in Settings:Style tab.
Styles / Width : Sets the plot style and width used, may be overridden in Settings:Style tab.
This indicator is designed to work with any chart timeframe, with the understanding that when used on timeframes higher than daily the indicator becomes "IntraPeriod" intensity, for example on weekly bars it would be "IntraWeek" intensity. On Daily or lower timeframes the indicator operates as "IntraDay" intensity and is being updated on each bar as each day progresses. If the experimental setting Intrabar is enabled then the indicator operates as "IntraBar" intensity and is no longer constrained to daily or higher evaluations, for example with Intrabar enabled on a 4H timeframe the indicator would operate as "Intra4H" intensity.
NOTICE: This is an example script and not meant to be used as an actual strategy. By using this script or any portion thereof, you acknowledge that you have read and understood that this is for research purposes only and I am not responsible for any financial losses you may incur by using this script!
NSDT Horizontal VWAPThis script plots VWAP as a horizontal line starting at the most recent candle and extending backwards for a period of 10 to make it easier to see. (default is 10 but can be changed to fit your needs)
You may only want to see where VWAP is currently and not need to see the entire day. Helps keep the chart clean.
Colors and line settings can all be modified.
You can show the original VWAP plot as well for reference.
What Is the Volume-Weighted Average Price (VWAP)?
The volume-weighted average price (VWAP) is a technical analysis indicator used on intraday charts that resets at the start of every new trading session.
It's a trading benchmark that represents the average price a security has traded at throughout the day, based on both volume and price.
VWAP is important because it provides traders with pricing insight into both the trend and value of a security.
High Liquidity Zones and Threshold VolumeThe High Liquidity Zones indicator is designed to identify areas of significant liquidity in the market. It helps traders recognize regions where trading volume is notably higher, indicating potential areas of increased market activity and interest.
The indicator calculates the average volume over a specified lookback period, which can be customized according to individual preferences. This average volume acts as a reference point to determine the threshold volume level. The threshold percentage input allows users to set the sensitivity of the indicator, defining the minimum volume required for an area to be considered a high liquidity zone.
When the current volume surpasses the threshold volume level, the indicator highlights these areas as high liquidity zones. This visual representation allows traders to quickly identify and focus on periods of heightened trading activity. The high liquidity zones are marked with square shapes below the histogram, providing a clear visual indication on the chart.
The first plot line represents the threshold volume level as a histogram, showing the volume levels in relation to the threshold. This histogram helps traders assess the magnitude of the volume in the identified high liquidity zones.
The second plot line represents the threshold volume's simple moving average (SMA) over the lookback period. The SMA acts as a reference line, smoothing out fluctuations in the threshold volume and providing a more stable measure of high liquidity zones. Traders can use this line to better understand the overall trend and dynamics of liquidity.
The High Liquidity Zones indicator offers flexibility, allowing traders to adapt it to their preferred trading style and timeframe. By adjusting the lookback period and threshold percentage, users can fine-tune the sensitivity of the indicator based on their trading strategies and market conditions.
Furthermore, traders can combine the High Liquidity Zones indicator with other technical analysis tools to confirm trading signals or identify areas of potential support and resistance. It can help them locate price levels where market participants have a substantial presence and where significant buying or selling pressure may occur.
Overall, the High Liquidity Zones indicator is a valuable tool for traders seeking to gain insights into market liquidity dynamics. By highlighting areas of intense trading activity, it assists in making informed trading decisions and identifying opportunities within the market.
Directional Volume EStimate from Price Action (RedK D_VESPA)The "Directional Volume EStimate from Price Action (RedK D_VESPA)" is another weapon for the VPA (Volume Price Analysis) enthusiasts and traders who like to include volume-based insights & signals to their trading. The basic concept is to estimate the sell and buy split of the traded volume by extrapolating the price action represented by the shape of the associated price bar. We then create and plot an average of these "estimated buy & sell volumes" - the estimated average Net Volume is the balance between these 2 averages.
D_VESPA uses clear visualizations to represent the outcomes in a less distracting and more actionable way.
How does D_VESPA work?
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The key assumption is that when price moves up, this is caused by "buy" volume (or increasing demand), and when the price moves down, this is due to "selling" volume (or increasing supply). Important to note that we are making our Buy/sell volume estimates here based on the shape of the price bar, and not looking into lower time frame volume data - This is a different approach and is still aligned to the key concepts of VPA.
Originally this work started as an improvement to my Supply/Demand Volume Viewer (V.Viewer) , I ended up re-writing the whole thing after some more research and work on VPA, to improve the estimation, visualization and usability / tradability.
Think of D_VESPA as the "Pro" version of V.Viewer -- and please go back and review the details of V.Viewer as the root concepts are the same so I won't repeat them here (as it comes to exploring Balance Zone and finding Price Convergence/Divergence)
Main Features of D_VESPA
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- Update Supply/Demand calculation to include 2-bar gaps (improved algo)
- Add multiple options for the moving average (MA type) for the calculation - my preference is to use WMA
- Add option to show Net Volume as 3-color bars
- Visual simplification and improvements to be less distracting & more actionable
- added options to display/hide main visuals while maintaining the status line consistency (Avg Supply, Avg Demand, Avg Net)
- add alerts for NetVol moving into Buy (crosses 0 up) or Sell (crosses 0 down) modes - or swing from one mode to the other
(there are actually 2 sets of alerts, one set for the main NetVol plot, and the other for the secondary TF NetVol - give user more options on how to utilize D_VESPA)
Quick techie piece, how does the estimated buy/sell volume algo work ?
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* per our assumption, buy volume is associated with price up-moves, sell volume is associated with price down-moves
* so each of the bulls and bears will get the equivalent of the top & bottom wicks,
* for up bars, bulls get the value of the "body", else the bears get the "body"
* open gaps are allocated to bulls or bears depending on the gap direction
The below sketch explains how D_VESPA estimates the Buy/Sell Volume split based on the bar shape (including gap) - the example shows a bullish bar with an opening gap up - but the concept is the same for a down-bar or a down-gap.
I kept both the "Volume Weighted" and "2-bar Gap Impact" as options in the indicator settings - these 2 options should be always kept selected. They are there for those who would like to experiment with the difference these changes have on the buy/sell estimation. The indicator will handle cases where there is no volume data for the selected symbol, and in that case, it will simply reflect Average Estimated Bull/Bear ratio of the price bar
The Secondary TF Est Average Net Volume:
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I added the ability to plot the Estimate Average Net Volume for a secondary timeframe - options 1W, 1D, 1H, or Same as Chart.
- this feature provides traders the confidence to trade the lower timeframes in the same direction as the prevailing "market mode"
- this also adds more MTF support beyond the existing TradingView's built-in MTF support capability - experiment with various settings between exposing the indicator's secondary TF plot, and changing the TF option in the indicator settings.
Note on the secondary TF NetVol plot:
- the secondary TF needs to be set to same as or higher TF than the chart's TF - if not, a warning sign would show and the plot will not be enabled. for example, a day trader may set the secondary TF to 1Hr or 1Day, while looking at 5min or 15min chart. A swing/trend trader who frequently uses the daily chart may set the secondary TF to weekly, and so on..
- the secondary TF NetVol plot is hidden by default and needs to be exposed thru the indicator settings.
the below chart shows D_VESPA on a the same (daily) chart, but with secondary TF plot for the weekly TF enabled
Final Thoughts
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* RedK D_VESPA is a volume indicator, that estimates buy/sell and net volume averages based on the price action reflected by the shape of the price bars - this can provide more insight on volume compared to the classic volume/VolAverage indicator and assist traders in exploring the market mode (buyers/sellers - bullish/bearish) and align trades to it.
* Because D_VESPA is a volume indicator, it can't be used alone to generate a trading signal - and needs to be combined with other indicators that analysis price value (range), momentum and trend. I recommend to at least combine D_VESPA with a variant of MACD and RSI to get a full view of the price action relative to the prevailing market and the broader trend.
* I found it very useful to take note and "read" how the Est Buy vs Est Sell lines move .. they sort of "tell a story" - experiment with this on your various chart and note the levels of estimate avg demand vs estimate avg supply that this indicator exposes for some very valuable insight about how the chart action is progressing. Please feel free to share feedback below.
