UFO + Realtime Divergences (UO x MFI)UFO + Realtime Divergences (UO x MFI) + Alerts
The UFO is a hybrid of two powerful oscillators - the Ultimate Oscillator (UO) and the Money Flow Index (MFI)
Features of the UFO include:
- Optional divergence lines drawn directly onto the oscillator in realtime.
- Configurable alerts to notify you when divergences occur, as well as centerline crossovers.
- Configurable lookback periods to fine tune the divergences drawn in order to suit different trading styles and timeframes.
- Background colouring option to indicate when the oscillator has crossed its centerline.
- Alternate timeframe feature allows you to configure the oscillator to use data from a different timeframe than the chart it is loaded on.
- 2x MTF triple-timeframe Stochastic RSI overbought and oversold confluence signals painted at the top of the panel for use as a confluence for reversal entry trades.
The core calculations of the UFO+ combine the factory settings of the Ultimate Oscillator and Money Flow Index, taking an average of their combined values for its output eg:
UO_Value + MFI_Value / 2
The result is a powerful oscillator capable of detecting high quality divergences, including on very low timeframes and highly volatile markets, it benefits from the higher weighting of the most recent price action provided by the Ultimate Oscillators calculations, as well as the calculation of the MFI, which incorporates volume data. The UFO and its incorporated 2x triple-timeframe MTF Stoch RSI overbought and oversold signals makes it well adapted for low timeframe scalping and regular divergence trades in particular.
The Ultimate Oscillator (UO)
Tradingview describes the Ultimate Oscillator as follows:
“The Ultimate Oscillator indicator (UO) is a technical analysis tool used to measure momentum across three varying timeframes. The problem with many momentum oscillators is that after a rapid advance or decline in price, they can form false divergence trading signals. For example, after a rapid rise in price, a bearish divergence signal may present itself, however price continues to rise. The Ultimate Oscillator attempts to correct this by using multiple timeframes in its calculation as opposed to just one timeframe which is what is used in most other momentum oscillators.”
You can read more about the UO and its calculations here
The Money Flow Index ( MFI )
Investopedia describes the True Strength Indicator as follows:
“The Money Flow Index ( MFI ) is a technical oscillator that uses price and volume data for identifying overbought or oversold signals in an asset. It can also be used to spot divergences which warn of a trend change in price. The oscillator moves between 0 and 100. Unlike conventional oscillators such as the Relative Strength Index ( RSI ), the Money Flow Index incorporates both price and volume data, as opposed to just price. For this reason, some analysts call MFI the volume-weighted RSI .”
You can read more about the MFI and its calculations here
The Stochastic RSI (relating to the built-in MTF Stoch RSI feature)
The popular oscillator has been described as follows:
“The Stochastic RSI is an indicator used in technical analysis that ranges between zero and one (or zero and 100 on some charting platforms) and is created by applying the Stochastic oscillator formula to a set of relative strength index ( RSI ) values rather than to standard price data. Using RSI values within the Stochastic formula gives traders an idea of whether the current RSI value is overbought or oversold. The Stochastic RSI oscillator was developed to take advantage of both momentum indicators in order to create a more sensitive indicator that is attuned to a specific security's historical performance rather than a generalized analysis of price change.”
You can read more about the Stochastic RSI and its calculations here
How do traders use overbought and oversold levels in their trading?
The oversold level, that is when the Stochastic RSI is above the 80 level is typically interpreted as being 'overbought', and below the 20 level is typically considered 'oversold'. Traders will often use the Stochastic RSI at an overbought level as a confluence for entry into a short position, and the Stochastic RSI at an oversold level as a confluence for an entry into a long position. These levels do not mean that price will necessarily reverse at those levels in a reliable way, however. This is why this version of the Stoch RSI employs the triple timeframe overbought and oversold confluence, in an attempt to add a more confluence and reliability to this usage of the Stoch RSI .
What are divergences?
Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.
There are 4 main types of divergence, which are split into 2 categories;
regular divergences and hidden divergences. Regular divergences indicate possible trend reversals, and hidden divergences indicate possible trend continuation.
Regular bullish divergence: An indication of a potential trend reversal, from the current downtrend, to an uptrend.
Regular bearish divergence: An indication of a potential trend reversal, from the current uptrend, to a downtrend.
Hidden bullish divergence: An indication of a potential uptrend continuation.
Hidden bearish divergence: An indication of a potential downtrend continuation.
How do traders use divergences in their trading?
A divergence is considered a leading indicator in technical analysis , meaning it has the ability to indicate a potential price move in the short term future.
Hidden bullish and hidden bearish divergences, which indicate a potential continuation of the current trend are sometimes considered a good place for traders to begin, since trend continuation occurs more frequently than reversals, or trend changes.
When trading regular bullish divergences and regular bearish divergences, which are indications of a trend reversal, the probability of it doing so may increase when these occur at a strong support or resistance level . A common mistake new traders make is to get into a regular divergence trade too early, assuming it will immediately reverse, but these can continue to form for some time before the trend eventually changes, by using forms of support or resistance as an added confluence, such as when price reaches a moving average, the success rate when trading these patterns may increase.
Typically, traders will manually draw lines across the swing highs and swing lows of both the price chart and the oscillator to see whether they appear to present a divergence, this indicator will draw them for you, quickly and clearly, and can notify you when they occur.
Setting alerts.
With this indicator you can set alerts to notify you when any/all of the above types of divergences occur, on any chart timeframe you choose.
Configurable pivot period.
You can adjust the default pivot lookback values to suit your prefered trading style and timeframe. If you like to trade a shorter time frame, lowering the default lookback values will make the divergences drawn more sensitive to short term price action.
Disclaimer: This script includes code from the stock UO and MFI by Tradingview as well as the Divergence for Many Indicators v4 by LonesomeTheBlue.
Volume
Physics CandlesPhysics Candles embed volume and motion physics directly onto price candles or market internals according to the cyclic pattern of financial securities. The indicator works on both real-time “ticks” and historical data using statistical modeling to highlight when these values, like volume or momentum, is unusual or relatively high for some periodic window in time. Each candle is made out of one or more sub-candles that each contain their own information of motion, which converts to the color and transparency, or brightness, of that particular candle segment. The segments extend throughout the entire candle, both body and wicks, and Thick Wicks can be implemented to see the color coding better. This candle segmentation allows you to see if all the volume or energy is evenly distributed throughout the candle or highly contained in one small portion of it, and how intense these values are compared to similar time periods without going to lower time frames. Candle segmentation can also change a trader’s perspective on how valuable the information is. A “low” volume candle, for instance, could signify high value short-term stopping volume if the volume is all concentrated in one segment.
The Candles are flexible. The physics information embedded on the candles need not be from the same price security or market internal as the chart when using the Physics Source option, and multiple Candles can be overlayed together. You could embed stock price Candles with market volume, market price Candles with stock momentum, market structure with internal acceleration, stock price with stock force, etc. My particular use case is scalping the SPX futures market (ES), whose price action is also dictated by the volume action in the associated cash market, or SPY, as well as a host of other securities. Physics allows you to embed the ES volume on the SPY price action, or the SPY volume on the ES price action, or you can combine them both by overlaying two Candle streams and increasing the Number of Overlays option to two. That option decreases the transparency levels of your coloring scheme so that overlaying multiple Candles converges toward the same visual color intensity as if you had one. The Candle and Physics Sources allows for both Symbols and Spreads to visualize Candle physics from a single ticker or some mathematical transformation of tickers.
Due to certain TradingView programming restrictions, each Candle can only be made out of a maximum of 8 candle segments, or an “8-bit” resolution. Since limits are just an opportunity to go beyond, the user has the option to stack multiple Candle indicators together to further increase the candle resolution. If you don’t want to see the Candles for some particular period of the day, you can hide them, or use the hiding feature to have multiple Candles calibrated to show multiple parts of the trading day. Securities tend to have low volume after hours with sharp spikes at the open or close. Multiple Candles can be used for multiple parts of the trading day to accommodate these different cycles in volume.
The Candles do not need be associated with the nominal security listed on the TV chart. The Candle Source allows the user to look at AAPL Candles, for instance, while on a TSLA or SPY chart, each with their respective volume actions integrated into the candles, for instance, to allow the user to see multiple security price and volume correlation on a single chart.
The physics information currently embeddable on Candles are volume or time, velocity, momentum, acceleration, force, and kinetic energy. In order to apply equations of motion containing a mass variable to financial securities, some analogous value for mass must be assumed. Traders often regard volume or time as inextricable variables to a securities price that can indicate the direction and strength of a move. Since mass is the inextricable variable to calculating the momentum, force, or kinetic energy of motion, the user has the option to assume either time or volume is analogous to mass. Volume may be a better option for mass as it is not strictly dependent on the speed of a security, whereas time is.
Data transformations and outlier statistics are used to color code the intensity of the physics for each candle segment relative to past periodic behavior. A million shares during pre-market or a million shares during noontime may be more intense signals than a typical million shares traded at the open, and should have more intense color signals. To account for a specific cyclic behavior in the market, the user can specify the Window and Cycle Time Frames. The Window Time Frame splits up a Cycle into windows, samples and aggregates the statistics for each window, then compares the current physics values against past values in the same window. Intraday traders may benefit from using a Daily Cycle with a 30-minute Window Time Frame and 1-minute Sample Time Frame. These settings sample and compare the physics of 1-minute candles within the current 30-minute window to the same 30-minute window statistics for all past trading days, up until the data limit imposed by TradingView, or until the Data Collection Start Date specified in the settings. Longer-term traders may benefit from using a Monthly Cycle with a Weekly Time Frame, or a Yearly Cycle with a Quarterly Time Frame.
Multiple statistics and data transformation methods are available to convey relative intensity in different ways for different trading signals. Physics Candles allows for both Normal and Log-Normal assumptions in the physics distribution. The data can then be transformed by Linear, Logarithmic, Z-Score, or Power-Law scoring, where scoring simply assigns an intensity to the relative physics value of each candle segment based on some mathematical transformation. Z-scoring often renders adequate detection by scoring the segment value, such as volume or momentum, according to the mean and standard deviation of the data set in each window of the cycle. Logarithmic or power-law transformation with a gamma below 1 decreases the disparity between intensities so more less-important signals will show up, whereas the power-law transformation with gamma values above 1 increases the disparity between intensities, so less more-important signals will show up. These scores are then converted to color and transparency between the Min Score and the Max Score Cutoffs. The Auto-Normalization feature can automatically pick these cutoffs specific to each window based on the mean and standard deviation of the data set, or the user can manually set them. Physics was developed with novices in mind so that most users could calibrate their own settings by plotting the candle segment distributions directly on the chart and fiddling with the settings to see how different cutoffs capture different portions of the distribution and affect the relative color intensities differently. Security distributions are often skewed with fat-tails, known as kurtosis, where high-volume segments for example, have a higher-probabilities than expected for a normal distribution. These distribution are really log-normal, so that taking the logarithm leads to a standard bell-shaped distribution. Taking the Z-score of the Log-Normal distribution could make the most statistical sense, but color sensitivity is a discretionary preference.
Background Philosophy
This indicator was developed to study and trade the physics of motion in financial securities from a visually intuitive perspective. Newton’s laws of motion are loosely applied to financial motion:
“A body remains at rest, or in motion at a constant speed in a straight line, unless acted upon by a force”.
Financial securities remain at rest, or in motion at constant speed up or down, unless acted upon by the force of traders exchanging securities.
“When a body is acted upon by a force, the time rate of change of its momentum equals the force”.
Momentum is the product of mass and velocity, and force is the product of mass and acceleration. Traders render force on the security through the mass of their trading activity and the acceleration of price movement.
“If two bodies exert forces on each other, these forces have the same magnitude but opposite directions.”
Force arises from the interaction of traders, buyers and sellers. One body of motion, traders’ capitalization, exerts an equal and opposite force on another body of motion, the financial security. A securities movement arises at the expense of a buyer or seller’s capitalization.
Volume
The premise of this indicator assumes that volume, v, is an analogous means of measuring physical mass, m. This premise allows the application of the equations of motion to the movement of financial securities. We know from E=mc^2 that mass has energy. Energy can be used to create motion as kinetic energy. Taking a simple hypothetical example, the interaction of one short seller looking to cover lower and one buyer looking to sell higher exchange shares in a security at an agreed upon price to create volume or mass, and therefore, potential energy. Eventually the short seller will actively cover and buy the security from the previous buyer, moving the security higher, or the buyer will actively sell to the short seller, moving the security lower. The potential energy inherent in the initial consolidation or trading activity between buy and seller is now converted to kinetic energy on the subsequent trading activity that moves the securities price. The more potential energy that is created in the consolidation, the more kinetic energy there is to move price. This is why point and figure traders are said to give price targets based on the level of volatility or size of a consolidation range, or why Gann traders square price and time, as time is roughly proportional to mass and trading activity. The build-up of potential energy between short sellers and buyers in GME or TSLA led to their explosive moves beyond their standard fundamental valuations.
Position
Position, p, is simply the price or value of a financial security or market internal.
Time
Time, t, is another means of measuring mass to discover price behavior beyond the time snapshots that simple candle charts provide. We know from E=mc^2 that time is related to rest mass and energy given the speed of light, c, where time ≈ distance * sqrt(mass/E). This relation can also be derived from F=ma. The more mass there is, the longer it takes to compute the physics of a system. The more energy there is, the shorter it takes to compute the physics of a system. Similarly, more time is required to build a “resting” low-volatility trading consolidation with more mass. More energy added to that trading consolidation by competing buyers and sellers decreases the time it takes to build that same mass. Time is also related to price through velocity.
Velocity = (p(t1) – p(t0)) / p(t0)
Velocity, v, is the relative percent change of a securities price, p, over a period of time, t0 to t1. The period of time is between subsequent candles, and since time is constant between candles within the same timeframe, it is not used to calculate velocity or acceleration. Price moves faster with higher velocity, and slower with slower velocity, over the same fixed period of time. The product of velocity and mass gives momentum.
Momentum = mv
This indicator uses physics definition of momentum, not finance’s. In finance, momentum is defined as the amount of change in a securities price, either relative or absolute. This is definition is unfortunate, pun intended, since a one dollar move in a security from a thousand shares traded between a few traders has the exact same “momentum” as a one dollar move from millions of shares traded between hundreds of traders with everything else equal. If momentum is related to the energy of the move, momentum should consider both the level of activity in a price move, and the amount of that price move. If we equate mass to volume to account for the level of trading activity and use physics definition of momentum as the product of mass and velocity, this revised definition now gives a thousand-times more momentum to a one-dollar price move that has a thousand-times more volume behind it. If you want to use finance’s volume-less definition of momentum, use velocity in this indicator.
Acceleration = v(t1) – v(t0)
Acceleration, a, is the difference between velocities over some period of time, t0 to t1. Positive acceleration is necessary to increase a securities speed in the positive direction, while negative acceleration is necessary to decrease it. Acceleration is related to force by mass.
Force = ma
Force is required to change the speed of a securities valuation. Price movements with considerable force have considerably more impact on future direction. A change in direction requires force.
Kinetic Energy = 0.5mv^2
Kinetic energy is the energy that a financial security gains from the change in its velocity by force. The built-up of potential energy in trading consolidations can be converted to kinetic energy on a breakout from the consolidation.
Cycle Theory and Relativity
Just as the physics of motion is relative to a point of reference, so too should the physics of financial securities be relative to a point of reference. An object moving at a 100 mph towards another object moving in the same direction at 100 mph will not appear to be moving relative to each other, nor will they collide, but from an outsider observer, the objects are going 100 mph and will collide with significant impact if they run into a stationary object relative to the observer. Similarly, trading with a hundred thousand shares at the open when the average volume is a couple million may have a much smaller impact on the price compared to trading a hundred thousand shares pre-market when the average volume is ten thousand shares. The point of reference used in this indicator is the average statistics collected for a given Window Time Frame for every Cycle Time Frame. The physics values are normalized relative to these statistics.
Examples
The main chart of this publication shows the Force Candles for the SPY. An intense force candle is observed pre-market that implicates the directional overtone of the day. The assumption that direction should follow force arises from physical observation. If a large object is accelerating intensely in a particular direction, it may be fair to assume that the object continues its direction for the time being unless acted upon by another force.
The second example shows a similar Force Candle for the SPY that counters the assumption made in the first example and emphasizes the importance of both motion and context. While it’s fair to assume that a heavy highly accelerating object should continue its course, if that object runs into an obstacle, say a brick wall, it’s course may deviate. This example shows SPY running into the 50% retracement wall from the low of Mar 2020, a significant support level noted in literature. The example also conveys Gann’s idea of “lost motion”, where the SPY penetrated the 50% price but did not break through it. A brick wall is not one atom thick and price support is not one tick thick. An object can penetrate only one layer of a wall and not go through it.
The third example shows how Volume Candles can be used to identify scalping opportunities on the SPY and conveys why price behavior is as important as motion and context. It doesn’t take a brick wall to impede direction if you know that the person driving the car tends to forget to feed the cats before they leave. In the chart below, the SPY breaks down to a confluence of the 5-day SMA, 20-day SMA, and an important daily trendline (not shown) after the bullish bounce from the 50% retracement days earlier. High volume candles on the SMA signify stopping volume that reverse price direction. The character of the day changes. Bulls become more aggressive than bears with higher volume on upswings and resistance, whiles bears take on a defensive position with lower volume on downswings and support. High volume stopping candles are seen after rallies, and can tell you when to take profit, get out of a position, or go short. The character change can indicate that its relatively safe to re-enter bullish positions on many major supports, especially given the overarching bullish theme from the large reaction off the 50% retracement level.
The last example emphasizes the importance of relativity. The Volume Candles in the chart below are brightest pre-market even though the open has much higher volume since the pre-market activity is much higher compared to past pre-markets than the open is compared to past opens. Pre-market behavior is a good indicator for the character of the day. These bullish Volume Candles are some of the brightest seen since the bounce off the 50% retracement and indicates that bulls are making a relatively greater attempt to bring the SPY higher at the start of the day.
Infrequently Asked Questions
Where do I start?
The default settings are what I use to scalp the SPY throughout most of the extended trading day, on a one-minute chart using SPY volume. I also overlay another Candle set containing ES future volume on the SPY price structure by setting the Physics Source to ES1! and the Number of Overlays setting to 2 for each Candle stream in order to account for pre- and post-market trading activity better. Since the closing volume is exponential-like up until the end of the regular trading day, adding additional Candle streams with a tighter Window Time Frame (e.g., 2-5 minute) in the last 15 minutes of trading can be beneficial. The Hide feature can allow you to set certain intraday timeframes to hide one Candle set in order to show another Candle set during that time.
How crazy can you get with this indicator?
I hope you can answer this question better. One interesting use case is embedding the velocity of market volume onto an internal market structure. The PCTABOVEVWAP.US is a market statistic that indicates the percent of securities above their VWAP among US stocks and is helpful for determining short term trends in the US market. When securities are rising above their VWAP, the average long is up on the day and a rising PCTABOVEVWAP.US can be viewed as more bullish. When securities are falling below their VWAP, the average short is up on the day and a falling PCTABOVEVWAP.US can be viewed as more bearish. (UPVOL.US - DNVOL.US) / TVOL.US is a “spread” symbol, in TV parlance, that indicates the decimal percent difference between advancing volume and declining volume in the US market, showing the relative flow of volume between stocks that are up on the day, and stocks that are down on the day. Setting PCTABOVEVWAP.US in the Candle Source, (UPVOL.US - DNVOL.US) / TVOL.US in the Physics Source, and selecting the Physics to Velocity will embed the relative velocity of the spread symbol onto the PCTABOVEVWAP.US candles. This can be helpful in seeing short term trends in the US market that have an increasing amount of volume behind them compared to other trends. The chart below shows Volume Candles (top) and these Spread Candles (bottom). The first top at 9:30 and second top at 10:30, the high of the day, break down when the spread candles light up, showing a high velocity volume transfer from up stocks to down stocks.
How do I plot the indicator distribution and why should I even care?
The distribution is visually helpful in seeing how different normalization settings effect the distribution of candle segments. It is also helpful in seeing what physics intensities you want to ignore or show by segmenting part of the distribution within the Min and Max Cutoff values. The intensity of color is proportional to the physics value between the Min and Max Cutoff values, which correspond to the Min and Max Colors in your color scheme. Any physics value outside these Min and Max Cutoffs will be the same as the Min and Max Colors.
Select the Print Windows feature to show the window numbers according to the Cycle Time Frame and Window Time Frame settings. The window numbers are labeled at the start of each window and are candle width in size, so you may need to zoom into to see them. Selecting the Plot Window feature and input the window number of interest to shows the distribution of physics values for that particular window along with some statistics.
A log-normal volume distribution of segmented z-scores is shown below for 30-minute opening of the SPY. The Min and Max Cutoff at the top of the graph contain the part of the distribution whose intensities will be linearly color-coded between the Min and Max Colors of the color scheme. The part of the distribution below the Min Cutoff will be treated as lowest quality signals and set to the Min Color, while the few segments above the Max Cutoff will be treated as the highest quality signals and set to the Max Color.
What do I do if I don’t see anything?
Troubleshooting issues with this indicator can involve checking for error messages shown near the indicator name on the chart or using the Data Validation section to evaluate the statistics and normalization cutoffs. For example, if the Plot Window number is set to a window number that doesn’t exist, an error message will tell you and you won’t see any candles. You can use the Print Windows option to show windows that do exist for you current settings. The auto-normalization cutoff values may be inappropriate for your particular use case and literally cut the candles out of the chart. Try changing the chart time frame to see if they are appropriate for your cycle, sample and window time frames. If you get a “Timeframe passed to the request.security_lower_tf() function must be lower than the timeframe of the main chart” error, this means that the chart timeframe should be increased above the sample time frame. If you get a “Symbol resolve error”, ensure that you have correct symbol or spread in the Candle or Physics Source.
How do I see a relative physics values without cycles?
Set the Window Time Frame to be equal to the Cycle Time Frame. This will aggregate all the statistics into one bucket and show the physics values, such as volume, relative to all the past volumes that TV will allow.
How do I see candles without segmentation?
Segmentation can be very helpful in one context or annoying in another. Segmentation can be removed by setting the candle resolution value to 1.
Notes
I have yet to find a trading platform that consistently provides accurate real-time volume and pricing information, lacking adequate end-user data validation or quality control. I can provide plenty of examples of real-time volume counts or prices provided by TradingView and other platforms that were significantly off from what they should have been when comparing against the exchanges own data, and later retroactively corrected or not corrected at all. Since no indicator can work accurately with inaccurate data, please use at your own discretion.
The first version is a beta version. Debugging and validating code in Pine script is difficult without proper unit testing. Please report any bugs with enough information to reproduce them and indicate why they are important. I also encourage you to export the data from TradingView and verify the calculations for your particular use case.
The indicator works on real-time updates that occur at a higher frequency than the candle time frame, which TV incorrectly refers to as ticks. They use this terminology inaccurately as updates are really aggregated tick data that can take place at different prices and may not accurately reflect the real tick price action. Consequently, this inaccuracy also impacts the real-time segmentation accuracy to some degree. TV does not provide a means of retaining “tick” information, so the higher granularity of information seen real-time will be lost on a disconnect.
TV does not provide time and sales information. The volume and price information collected using the Sample Time Frame is intraday, which provides only part of the picture. Intraday volume is generally 50 to 80% of the end of day volume. Consequently, the daily+ OHLC prices are intraday, and may differ significantly from exchanged settled OHLC prices.
The Cycle and Window Time Frames refer to calendar days and time, not trading days or time. For example, the first window week of a monthly cycle is the first seven days of the month, not the first Monday through Friday of trading for the month.
Chart Time Frames that are higher than the Window Time Frames average the normalized physics for price action that occurred within a given Candle segment. It does not average price action that did not occur.
One of the main performance bottleneck in TradingView’s Pine Script is client-side drawing and plotting. The performance of this indicator can be increased by lowering the resolution (the number of sub-candles this indicator plots), getting a faster computer, or increasing the performance of your computer like plugging your laptop in and eliminating unnecessary processes.
The statistical integrity of this indicator relies on the number of samples collected per sample window in a given cycle. Higher sample counts can be obtained by increasing the chart time frame or upgrading the TradingView plan for a higher bar count. While increasing the chart time frame doesn’t increase the visual number of bars plotted on the chart, it does increase the number of bars that can be pulled at a lower time frame, up to 100,000.
Due to a limitation in Pine Scripts request_lower_tf() function, using a spread symbol will only work for regular trading hours, not extended trading hours.
Ideally, velocity or momentum should be calculated between candle closes. To eliminate the need to deal with price gaps that would lead to an incorrect statistical distributions, momentum is calculated between candle open and closes as a percent change of the price or value, which should not be an issue for most liquid securities.
Keltner Channel Volatility FilterOVERVIEW
The Keltner Channel Volatility Filter indicator is a technical indicator that gauges the amount of volatility currently present in the market. The purpose of this indicator is to filter out with-trend signals during ranging/non-trending/consolidating conditions.
CONCEPTS
This indicator assists traders in capitalizing on the assumption that trends are more likely to start during periods of high volatility compared to periods of low volatility . This is because high volatility indicates that there are bigger players currently in the market, which is necessary to begin a sustained trending move.
So, to determine whether the current volatility in the market is low, the KCVF will grey out all bars whose average price is within the Keltner Channels.
If the average price breaks out of the Keltner Channels , it is reasonable to assume we are in a high-volatility period. Thus, this is the ideal time to enter a trending trade due to the assumption that trends are more likely to start during these high-volatility periods.
HOW DO I READ THIS INDICATOR
When the candles are greyed out, don't take any trend trades since the current volatility is less than the usual volatility experienced in the market.
When the candles aren't greyed out, take all valid with-trend trades since the current volatility is greater than the usual volatility experienced in the market.
NSE Open Interest Current + Future Month - OI - COIUse this indicator on Daily Timeframe
This script enhances the standard Open Interest indicator in the following ways
Pulls Current Month and Next Month OI and sums up the data - COI
Works even if input symbol is stock/index and appends Current and Future suffix to pull the data
Volume 15m vs 1m*Up/Down Volume Indicator
This indicator plots the 15m volume (black line) on the 1m chart alongside the sum of 1m volume for 15m (blue line).
This indicator allows us to see the raw data that will generate the 15m volume before it occurs.
Next it seperates up period volume (green line) from down period volume (red line) so that we can see how much of each was responsible for the total volume.
The black line will dance for 15m at a time but if the blue line rises above the locked in section of the black line (to the left), then the next 15m volume will be higher than the last.
Also, if the green line is higher than the red, we know that up volume is driving of the increase.
*Volume Sum Indicator
This indicator allows us to track the volume trend even when volume is near zero.
This indicators sums the 15m volume for 13 periods to represent 200 minutes worth of volume.
Then it plots the sum of 1m up volume for 200 periods and the 1m down volume for 200 periods.
When green is over red, the volume is trending up.
Blue is the total 1m volume for 200 periods. It should act as a resistance line since it is unusual for 100% of volume to be up volume or down volume.
This indicator only works on the 1m chart. The higher timeframe must be set to 15m. If anyone knows how to make this indicator work on any timeframe that would be great!
Volume HIGH/CLIMAX
Volume is the number of shares of a security traded during a given period of time.
Generally securities with more daily volume are more liquid than those without, since they are more "active".
Volume is an important indicator in technical analysis because it is used to measure the relative significance of a market move.
The higher the volume during a price move, the more significant the move and the lower the volume during a price move, the less significant the move.
A climax occurs at the end of a bull or bear market cycle and is characterized by escalated trading volume and sharp price movements.
Climaxes are usually preceded by extreme sentiment readings, either excessive euphoria at market peaks, or excessive pessimism at market bottoms.
Essentially, climaxes are a result of a resolution in supply and demand factors.
Buying Climaxes
One of the clearest signals of the end of a bull market is a buying climax, during which volume escalates to extreme levels and bullish euphoria permeates media coverage of stocks, market indices, or commodities . The key trait of a buying climax is the exhaustion of demand as the last buyers enter the market. The final surge of buying typically leads to price spikes, which may last for days, weeks, or months. As demand wanes, buyers become less willing to pay higher prices. There may be a brief period of stagnation in prices before a combination of profit-taking and new sellers set in motion the start of a sharp reversal.
Selling Climaxes
The beginning of a selling climax is often signaled by steadily increasing volume on the sell side of the market as growing pessimism accelerates the downtrend. As the selling climax approaches, the last buyers finally capitulate, driving shares sharply lower. Once the supply side of the market abates, demand at support levels can cause the price to level off before a combination of profit-taking and new buyers set in motion the start of a sharp reversal.
Vol in FiatThis indicator is modified from veryevilone's BTC Volume in Fiat. Modified color and style, and bumped Pine language Version.
It shows volume in fiat, AKA dollar volume . If a trade pair is not traded in fiat, e.g. AAA-BBB , then it shows how much volume the BBB is involved.
Good for comparing liquidity between different pairs. Also good for pairs with big price fluctuation to determine actual liquidity.
Willspread Chart + POIV & ADVolumen TrendColor sπThe Indicator is a combination of different types of measurements to the Price Action.
1. Spread: The Spread is set to measure your Symbol to another chosen Market like Dollar as Contra . But you can switch also between different markets.
2. Accumulation/Distribution with True Range of High or Low including OpenInterest. This only works with Futures .
--Energies, Metals, Bonds, Softs, Currencies, Livestock, live cattle , feeder cattle, lean hogs , index--
Open Interest for:
ZW, ZC, ZS, ZM, ZL, ZO, ZR, CL, RB, HO, NG, GC, SI, HG, PA, PL, ZN, ZB, ZT, ZF, CC, CT, KC, SB, JO, LB, AUDUSD, GBPUSD, USDCAD, EURUSD, USDJPY, USDCHF, USDMXN, NZDUSD, USDRUB, DX, BTC, ETH, LE, GF, HE, NQ, NDX, ES, SPX, RTY, VIX,
3. Accumulation/Distribution with True Range of High or Low including Volume .
4. The color shows if the Market has positive or negative (Willspread, Volume or Open Interest)
5. The Indicator also shows Divergences to Price and Willspread Movements.
If you want to have more information just give me a message.
NIFTY IT volumeKEY TAKEAWAYS
-Uses NIFTY IT Index Stocks Volume .
-NIFTY IT Volume Indicator is created by adding all 10 NIFTY IT Stocks Volume together.
-NIFTY IT Volume will be an important indicator in NIFTY IT Index technical analysis because it is used to measure the relative significance of a market move.
-The higher the volume during a NIFTY IT index price move, the more significant the move and the lower the volume during a NIFTY IT index price move, the less significant the move.
-Moving Average is also added.
Average Volume ProfileAverage Volume Profile is an abstract based on a user suggestion.
The information displayed could be summed up as a volume profile divided by a market profile.
This indicator is a profile which displays the average volume of an area (of price).
It also calculates and displays the highest average volume point (HAV) and the relating value zones (calculated in the similar fashion to a volume profile).
Most of the code is directly from my "Volume/Market Profile" Indicator
I am not entirely sure of how to make use of the information displayed in this indicator or how useful it is.
However, I have added some things I figured would be useful to comprehend this information, such as:
- Read-out for highest average volume
- Read-out for current price average volume
- Read-out for current candle distributed volume (labeled as: "Vol")
- Floating line to visualize the current distributed volume in relation to the rest of the profile.
- Color changing labels for when the current distributed volume is higher than the current price avg volume.
Enjoy!
BetterVolumeAvgPinescript 5 version of buy/sell volume indicator with average. This script is original in that there are no versions of this study written in Pinescript 5 that I know of and while I've seen other buy/sell volume scripts this one includes a moving average.
BTC Agg VolumeBTC Volumes for stablecoin trading pairs from multiple exchanges. Volume is grouped by exchanged and appears as stacked bars. Volume data can be filtered by exchange and stablecoin pair. Appearance can be resized over with an option to apply standard deviations.
Normalized VolatilityOVERVIEW
The Normalized Volatility indicator is a technical indicator that gauges the amount of volatility currently present in the market, relative to the average volatility in the market. The purpose of this indicator is to filter out with-trend signals during ranging/non-trending/consolidating conditions.
CONCEPTS
This indicator assists traders in capitalizing on the assumption that trends are more likely to start during periods of high volatility compared to periods of low volatility. This is because high volatility indicates that there are bigger players currently in the market, which is necessary to begin a sustained trending move.
So, to determine whether the current volatility is "high", it is compared to an average volatility for however number of candles back the user specifies.
If the current volatility is greater than the average volatility, it is reasonable to assume we are in a high-volatility period. Thus, this is the ideal time to enter a trending trade due to the assumption that trends are more likely to start during these high-volatility periods.
HOW DO I READ THIS INDICATOR
When the column's color is red, don't take any trend trades since the current volatility is less than the average volatility experienced in the market.
When the column's color is green, take all valid with-trend trades since the current volatility is greater than the average volatility experienced in the market.
Normalized VolumeOVERVIEW
The Normalized Volume indicator is a technical indicator that gauges the amount of volume currently present in the market, relative to the average volume in the market. The purpose of this indicator is to filter out with-trend signals during ranging/non-trending/consolidating conditions.
CONCEPTS
This indicator assists traders in capitalizing on the assumption that trends are more likely to start during periods of high volume compared to periods of low volume. This is because high volume indicates that there are bigger players currently in the market, which is necessary to begin a sustained trending move.
So, to determine whether the current volume is "high", it is compared to an average volume for however number of candles back the user specifies.
If the current volume is greater than the average volume, it is reasonable to assume we are in a high-volume period. Thus, this is the ideal time to enter a trending trade due to the assumption that trends are more likely to start during these high-volume periods.
More information on this indicator can be found on NNFX's video on it in his Indicator Profile series and on Stonehill Forex's blog post on it .
HOW DO I READ THIS INDICATOR
When the column's color is red, don't take any trend trades since the current volume is less than the average volume experienced in the market.
When the column's color is green, take all valid with-trend trades since the current volume is greater than the average volume experienced in the market.
RTH & ETH VWAPs [vnhilton]Plots 2 different VWAPs for regular & extended trading sessions, with option for a plot fill between the 2 (using pinescript's new vertical gradient feature).
Volume Buoyancy [LucF]█ OVERVIEW
This indicator uses simple analysis of past volume to determine how well it supports recent market activity. What I call Volume buoyancy measures the strength and direction of that support.
█ CONCEPTS
Buoyancy
In physics, buoyancy is the force described in Archemedes' principle :
Any object, wholly or partially immersed in a fluid, is buoyed up by a force equal to the weight of the fluid displaced by the object.
I use the term loosely in this indicator's context, as "Volume buoyancy" here can be directed either up or down, indicating that past volume displays a bullish or bearish bias.
The calculation of buoyancy begins from a target quantity of volume summed over n bars. We then search chart bars backward, adding the volume of up and down bars in two different slots until each slot reaches the target. We then calculate two average distances: one each for the up and down bars whose volume was summed to reach the target. These average distances are then subtracted and the difference is divided by the farthest distance we had to go to find the target in either up or down bars. The last part of the calculations looks like this:
(avgDistanceDn - avgDistanceUp) / barsAnalyzed
When the average distance of down bars is greater than that of up bars, buoyancy will be positive, indicating that past activity favors the upside and vice versa. The force's strength, which in the case of actual buoyancy is the weight of the displaced fluid, in our case is measured by the size of the gap between the average distance of up vs down bars in relation to the farthest distance we had to go in the past. Buoyancy is always between +1 and -1, with values higher/lower than 0.3/-0.3 typically being unsustainable.
█ HOW TO USE THE INDICATOR
Load the indicator on an active chart (see here if you don't know how).
The default configuration displays:
• Buoyancy as a monochrome gray line.
• A channel between buoyancy and its MA, colored in one of four colors. The MA is not plotted by default, but you can see where it is with the channel.
The default settings use an Arnaud Legoux moving average over 20 bars.
• A fill between the MA and the centerline, which can be one of two colors.
• A high level at 0.30, a low level at -0.30 and the centerline at zero.
The default target is the sum of volume in the last 20 bars.
█ FEATURES
The indicator's settings allow you to define:
• A higher timeframe you want the calculations to be made on. Note that you should then ensure your chart's timeframe is always lower than the higher timeframe you specified,
as calculating on a timeframe lower than the chart's does not make much sense because the indicator is then displaying only the value of the last intrabar in the chart bar.
• The number of bars for which to add volume to obtain the target value that will be searched for in past up and down bars.
• The display of the buoyancy and MA lines, the channel between them and the fill between the MA line and the centerline.
• The type and length of the MA.
Using the "Style" tab of the indicator's settings, you can change the type and width of the lines, and the level values.
█ INTERPRETATION
Buoyancy shares the properties and shortcomings of many oscillators:
• It tends to be noisy, which is why the MA line can be helpful.
• The safest way to use it may be as a rough sentiment indicator, i.e., by paying more attention to its bull/bear state above/below the centerline.
• The more intrepid traders will want to use the channel between the main line and the MA, as it will provide earlier information than main line crosses of the centerline.
Decreasing the number of bars for which the source is added to calculate the target value will increase the noise level, somewhat like decreasing an MA's length would, but keep in mind that the number of bars is not the length of an MA.
█ LIMITATIONS
Under some circumstances, the indicator will display zero values because it cannot find the target in past bars. This will happen at the beginning of the dataset when not enough past bars have elapsed, or in the rarer cases anywhere in the dataset, when the target cannot be found in the `MAX_BARS_BACK` number of bars defined in the first line of the indicator's code (the default is 1000).
The calculations use a very primitive interpretation of volume similar to that of OBV , where all the volume of a bar is attributed to either the up or down slot. The indicator nonetheless produces results I think can be useful because we are not so much calculating precise buying/selling pressure as trying to build a big picture of where past activity over many bars appears to be taking price.
Volume data is notoriously high-variance; large values that come into or exit the calculations' scope can produce sudden variations in results, somewhat like the drop-off effect in moving averages.
█ NOTES
• The script can be used with any chart timeframe, including seconds.
• Historical values will always produce the same results. In real time, values will change until the bar closes.
FinNifty VolumesKEY TAKEAWAYS
-Uses FinNifty Index Stocks Volume .
-FinNifty Volume Indicator is created by adding all 20 FinNifty Stocks Volume together.
-FinNifty Volume will be an important indicator in FinNifty Index technical analysis because it is used to measure the relative significance of a market move.
-The higher the volume during a FinNiftyy index price move, the more significant the move and the lower the volume during a FinNifty index price move, the less significant the move.
-Moving Average is also added.
Unified Composite Index [UCI] [KuraiBlu] [LazyBear]The purpose of this indicator is to combine the four basic types of indicators (Trend, Volatility, Momentum and Volume) to create a singular, composite index in order to provide a more holistic means of observing potential changes within the market, known as the Unified Composite Index . The indicators used in this index are as follows:
Trend - Trend Composite Index
Volatility - Bollinger Bands %b
Momentum - Relative Strength Index
Volume - Money Flow Index
The average price source can’t be altered as I’ve made it an average between ((open + close) / 2) and ((high + low) / 2).
The best way to use this is by observing several of the indicators at once in conjunction with the average, rather than simply using the average produced to determine the right moment to enter, or exit a trade by itself. I've found when one indicator goes way out of bounds relative to the other three (and subsequently, the average array), then it presents a good buying, or selling opportunity.
Some adjustments were made to several of the indicators in order to standardize them on a scale of 1-100 so that they could better accommodate the average array that was finally produced. Thanks to LazyBear for letting me strip down the WaveTrend Oscillator.
24-hour Volume (Multi-color with target size)This indicator has added the option to set different colors for a size target so you can set and instantly knows if the volume is above or below your target by seeing the different colors. Furthermore, I've added the option to opt-out of the error message that blocked the use of the 'crypto' market with the 'tick' type because maybe some users needed it, for example: BYBIT:APEUSDT is by default not available but personally I want to see it, so I can turn it on in this script.
[FFriZz]Priceline/TicksFFriZz | FrizLabz -- Priceline/Ticks
Due to TradingView not allowing us to change the size or style of the Priceline I decided to make this
You can change the style, size, color of the Price line with this Script
There is also an option for the closing price to be plotted on the Priceline
-- Colors --
You can have the Line and/or the Closing price change colors with the price movements
both are adjustable to your preference
-- Ticks --
Will show the difference in price from tick to tick
when Volume moves but price doesn't it will show '▲▼'
-- Adjustments --
The offset of the Close and Ticks can be adjusted from left to right
Can Extend Priceline in all directions
Can change the Line style and Width
Can change all the Text sizes and Colors
Can also Change Colors to change with Price movements
Can Change number of Ticks to show
-- Priceline --
You don't have to but I suggest going to the settings of your Chart and turning off the Priceline
-- Challenge --
There is Some code at the bottom that will move the Label and Ticks to the x% of your screen in from the right once
the last bar is no longer visible. I decided not to use it because even when the feature is turned off any movement of the
chart resets the Ticks. If you find out a way to have it not reset the Ticks Let me know!
If you find any bugs or have any suggestions feel free to DM me or leave a comment!
Hope you Enjoy! -- FFriZz | FrizLabz
VolATRThis is my VolATR indicator. It fires Buy and Sell signals based on Volume and the ATR. Its pretty good at catching reversals and I like to use it to scalp the SPY . It doesn't provide tons of signals but the signals that it does are usually pretty accurate.
Emmanuelindicateur à utiliser prudemment après une bonne analyse pour plus de confirmation
toute décision prise avec ce indicateur ne sera pas de ma faute libre choix de l'utiliser
Emmanuelindicateur à utiliser après ses propres analyses
il est conçu pour confirmer les prises de positions
