Volume Tick ExperimentThis ticks-based indicator provides real-time volume information for a trading asset. Volume is analyzed and updated continuously, not just at candle close. It is based on DGT's Bull vs Bear Power indicator but adds a gas signal that activates when buying or selling volume percentage reaches a predetermined threshold.
This indicator can also help traders determine the direction and aggressiveness of pushes in buying or selling volume. By monitoring the volume percentages and gas signals, traders can get an idea of whether the market is pushing in a particular direction and how strong the push is. This information can be helpful in making trading decisions and identifying potential entry or exit points.
The indicator uses open, high, low, and close prices of the asset to calculate volume information. It determines the average volume over a selected period and calculates volume for both buying and selling. This information is used to calculate the percentage of buying and selling volume. A gas signal is triggered when either the buying or selling percentage reaches a predetermined threshold.
Enjoy!
出来高
Volume Channel - [With Volume Filter]The indicator calculates two volume-weighted moving averages (VWMA) using different lengths, and filters them based on a moving average of volume. The filtered VWMA values are then plotted on the chart as lines, representing the fast and slow moving averages. In addition, upper and lower bands are calculated based on the slow VWMA and plotted as lines on the chart.
The fast and slow VWMA lines can be used to identify trends in the market. When the fast VWMA is above the slow VWMA, it is an indication of an uptrend, and when the fast VWMA is below the slow VWMA, it is an indication of a downtrend. The position of the VWMA lines relative to the upper and lower bands can also be used to identify potential trade signals.
When the price is near the upper band, it indicates that the market is overbought, and when the price is near the lower band, it indicates that the market is oversold. Traders can use these signals to enter or exit trades.
The indicator also includes a volume filter, which means that the VWMA values are only calculated when the volume is above a certain moving average of volume. This helps to filter out noise in the market and provide more accurate signals.
Explanation for each parameter
vwmaLength1: This is the length of the fast volume-weighted moving average (VWMA) used in the calculation. The default value is 10, and it can be adjusted by the user.
vwmaLength2: This is the length of the slow volume-weighted moving average (VWMA) used in the calculation. The default value is 25, and it can be adjusted by the user.
bandLength: This is the length of the moving average used to calculate the upper and lower bands. The default value is 34, and it is not adjustable by the user.
volumeFilterLength: This is the length of the moving average of volume used as a filter for the VWMA calculation. The default value is 5, and it can be adjusted by the user.
src: This is the input source for the VWMA calculation. The default value is close, which means the indicator is using the closing price of each bar. However, the user can select a different input source by changing this parameter.
filteredVwma1: This is the filtered VWMA calculated based on the volume filter and the fast VWMA length. It is plotted as a line on the chart and can be used to identify short-term trends.
filteredVwma2: This is the filtered VWMA calculated based on the volume filter and the slow VWMA length. It is plotted as a line on the chart and can be used to identify long-term trends.
ma: This is the moving average of the filtered slow VWMA values, which is used to calculate the upper and lower bands. It is plotted as a line on the chart.
offs: This is the offset used to calculate the upper and lower bands. It is based on the standard deviation of the filtered slow VWMA values and is multiplied by 1.6185 * 3. It is plotted as a line on the chart.
up: This is the upper band calculated as the moving average plus the offset. It is plotted as a line on the chart and can be used to identify overbought conditions.
dn: This is the lower band calculated as the moving average minus the offset. It is plotted as a line on the chart and can be used to identify oversold conditions.
Z-Score(Slope(OBV(LBC)))Summary : Market price is simply a dance of liquidity to the specific market.
tl;dr: "Cash come-in, market moon; Cash go-out, market doom"
In Simple Language : Large changes in the money flow to an asset often mark local price extremia.
Academic paper:
Title: Z-Score(Slope(OBV)): An Efficient Indicator for Identifying Local Extremes in Asset Prices
Abstract: This paper presents a novel trading indicator, Z-Score(Slope(OBV)), that aims to predict local extremes in asset prices by analyzing the patterns of money flow. The indicator is constructed using the Z-score of the slope of the On Balance Volume (OBV).
Hypothesis: The price levels at which the money flows into and out of an asset often mark local extremes. This notion underpins our exploration of the Z-Score(Slope(OBV)) indicator's potential in identifying these critical points.
1. On Balance Volume (OBV): The OBV is a momentum indicator that leverages the volume flow to forecast potential changes in asset prices. It operates on the premise that changes in volume often presage shifts in price. The OBV algorithm adds a period's volume to the cumulative total when the closing price is up and subtracts it when the closing price is down. Therefore, an ascending OBV suggests positive volume pressure, potentially heralding higher prices, while a declining OBV signifies negative volume pressure, possibly indicating lower prices.
2. Slope: In this context, the slope represents the rate of change of the OBV. It is a measure of the rise-over-run for a linear regression line through the OBV data points. By evaluating the slope of the OBV, we can extract valuable insights into the momentum of the volume. A positive slope indicates increasing volume momentum, suggesting growing interest in the asset, while a negative slope implies declining volume momentum, potentially reflecting dwindling interest.
3. Z-Score: The Z-score is a statistical measure that delineates a data point's relationship to the mean of a group of values, expressed in terms of standard deviations from the mean. For instance, a Z-score of 0 reveals that the data point's score aligns with the mean score. Positive Z-scores indicate values higher than the mean, and negative Z-scores represent values lower than the mean. Applying the Z-score to the slope of the OBV allows us to comprehend the degree of deviation of the current OBV slope from its historical mean.
A Z-score of 1 suggests that the OBV's slope is one standard deviation from the mean, which implies that the slope is within the range of values where approximately 68% (not 67%) of all values lie.
A Z-score of 2 implies that the slope is two standard deviations from the mean, thus within the range where roughly 95% of all values lie.
A Z-score of 3 indicates that the slope is three standard deviations from the mean, putting it within the range where about 99.7% of all values lie.
Z-scores of 4 and 5 and beyond are increasingly rare and represent extreme values.
4. The Z-Score(Slope(OBV)) Indicator and Line Break Chart Synergy: The Z-Score(Slope(OBV)) indicator's efficiency is further amplified when visualized using a Line Break chart. This chart type disregards time, concentrating solely on price changes, thus providing a clear visualization of market trends. When combined with the Line Break chart, the Z-Score(Slope(OBV(LBC))) indicator can help traders identify trend shifts more accurately and promptly, reinforcing the hypothesis that price levels where money flows into and out of an asset often mark local extremes.
In summary, the Z-Score(Slope(OBV)) indicator, combining volume, momentum, and statistical analysis, provides a robust tool for traders to predict local extremes in asset prices.
Regarding Implementation:
- This is implemented using Pinescript V5
- Uses inbuilt ta module
- Very effective and simple and efficient computation in 30 lines of code
EquiVolume [LuxAlgo]EquiVolume is a charting method that aims to incorporate volume information to a candlestick chart. Volume is highlighted through the candle body width, with wider candles suggesting more significant volume.
Our script shows an EquiVolume chart for the visible chart range. Additionally regular volume can be plotted as a column plot with the column's width controlled by volume.
🔶 SETTINGS
🔹 Options
Chart: Shows candles with volume adjusted width.
Volume: Shows volume with volume adjusted width.
🔹 Intrabar Analysis
Enable/disable: When LTF is enabled, the script will calculate the % volume/candles in the same direction than current timeframe.
You can choose a LTF between 1 and 240 minutes.
Type %:
- Volume: sum of volume of all LTF candles, which are in the same direction.
- #bars: sum of all LTF candles, which are in the same direction.
🔹 Width Boxes (bars)
Minimum width: sets the minimum width of a box (candle/volume)
Maximum width: sets the maximum width of a box (candle/volume)
🔶 USAGE
This charting method makes it easier to spot large volume candles, against comparing candles to volume.
Another example:
Additionally, users can make the script perform an intrabar analysis on the chart candles, allowing to highlight bullish/bearish activity within a candle. The script can estimate bullish/bearish trading activity within a candle or simply use intrabar candle signs.
Example
- 15-minute candle is green
- 10 1-minute candles (LTF) IN that 15-minute candle are green -> 10/15 = 66,667%
-> The current 15-minute candle will be 66,667% filled with green color.
Note that the script will draw everything from last visible bar at the right to left, as such you can scroll backwards, and the script will show you the data of the visible chart.
Scrolling back will return the following result:
🔶 REMARKS
When the LTF is too far apart from current timeframe, you should get an error. To prevent this, the LTF will automatically rise, giving no error.
When this happens, the adjusted LTF will be displayed. Do note, due to a maximum available LTF data, sometimes boxes won't always be visible (since there is no LTF data anymore)
To solve this, just elevate your LTF:
When the set LTF is higher than current TF, you would normally get an error as well.
This script will automatically adjust the LTF to current TF, together with a visible warning (no error though).
Due to the inability to draw a line in the space between bars, sometimes a wick won't be placed exactly in the middle.
Bar composition in 1minute | True candlestick colorThe indicator shows the true color of a bar based on the internal composition on 1 minute timeframe and the final outcome. It uses following parameters of 1minute and current timeframe inputs
relative bar close, average volume vs current volume and finally the volume of internal candles.
It follows following steps:
First, it defines the arrays of high, low, close, volume in one minute timeframe
Second, it identifies the negative and positive volume based on the bar closing at one minute timeframe
Third , it adds all the volume and find whether the overall volume is positive or negative for overall bar in higher timeframe (current timeframe)
Fourth, it compare the volume in current timeframe to average of volume in in current timeframe
Fifth, if relative closing, relative volume (current timeframe) and the combined volume (in 1 minute timeframe) gives same outcome then color of the bar is decided whether the bar is bullish, bearish or inconclusive/contnuation.
Through this you get to check price action in 1minute timeframe and the ultimate outcome in current timeframe. this helps in understanding whether the bar is truly bullish or bearish or continuation of the trend
Feel free to connect for any query.
PM RTH AH VWAPs [vnhilton]FOR STOCKS ONLY.
Simply 3 different VWAPs for the pre-market, regular trading session, and the after hours, using session.is_ variables (not sure if they were recently added. Regardless, it would be nice to have a session.isfirstbar_postmarket variable to avoid having to write the code for calculating VWAP instead of simply using a ta.vwap function). Treats all 3 sections of the day as separate sessions with their own characteristics i.e. differing levels of liquidity and market dynamics. I would argue this is better than just using a VWAP calculated from the pre-market open until after hours close, as it would make using the VWAPs as a benchmark more accurate when taking trades at these different periods of the day.
Open Interest All ExchangesThe indicator collects data from available exchanges based on open interest. The indicators are calculated in the amount of Bitcoin.
Below are the tickers of the exchanges that provide the data:
- BITFINEX:BTCUSD
- BITFINEX:BTCUST
- KRAKEN:BTCUSDPERP
- BITMEX:XBTUSD
- BITMEX:XBTUSDT
- BINANCE:BTCUSDTPERP
- BINANCE:BTCUSDPERP (due to low volumes and limitations of 40 requests of the request.security function, the code contains data without using the calculation)
For me, Open Interest indicators play an important role in the trading system, for this reason I share with you. I am not a financial advisor.
**Open for cooperation**
Absolute Momentum IntensityNo lag, no boundaries, real momentum indicator.
Momentum = mass × velocity
In trading, this would be: volume × candle size. But due to the huge differences in volumes and volatility in the market, strong momentum crushes (flattens) average momentum, making it unpractical in an indicator. AMI provides a usable and adjustable workaround to this problem.
HOW DOES AMI WORK?
AMI measures and plots the momentum of each candle individually, with a formula I invented (or so I believe).
Formula: (Actual volume / Moving average of the volumes) × (Actual size of the candle / Moving average of the size of the candles)
Put simply, it multiplies the ratio between actual and past volumes, by the ratio between actual and past candles' sizes.
The length of the moving averages used in AMI's calculation is called "Contrast" in the settings.
A contrast of 20 shows every single impulse.
100 flattens small moves, thus revealing when the momentum is at its strongest.
Feel free to adjust the contrast of AMI to fit your needs.
The result is plotted starting from the last point. So the angle of each segment expresses the momentum of the corresponding candle.
Note: AMI will not run without enough candles or volume datas, on higher timeframes for example (W,M...).
HOW TO READ AMI?
AMI's line color, angle, and backgrounds help identify the current momentum as bullish, bearish, weak, or strong.
When AMI crosses the closest ribbon's line (which is in gray by default), its color changes, signaling a shift in momentum.
When the 3 ribbons are fully deployed, separated by large backgrounds, the momentum can be considered strong. This is what we are looking for.
When the momentum decreases, the background color changes (gray by default). It can be nothing, or it can be an early sign of consolitation or even reversal, especially if more do follow.
AMI adjusts to the size of its pane. Therefore, it is a good idea to keep a period of strong momentum in the screen, as a scale.
Comparing the actual momentum with the past ones sheds some light on the intensity of the price action.
DIVERGENCES
Divergences are relevant as long as there's amplitude in the chart. But it is still hard to estimate how far the expected move will go.
AMI comes with a divergence detection system. It won't show all the divergences though. Just the ones it can pick. So you might look for more, and adjust the settings to your needs.
This part of the script is independant from AMI, and easy to identify, so you can delete it if you don't need it.
DO NOT BASE YOUR TRADING DECISIONS ON 1 SINGLE INDICATOR'S SIGNALS.
Always confirm your ideas by other means, like price action and indicators of a different nature.
Volume Shaded CandlesDescription:
The Volume Shaded Candles indicator (VSC) is a technical analysis tool designed to represent price candles on a chart with transparency based on the volume traded during each candle. This overlay indicator enhances visual analysis by providing a visual representation of volume intensity.
How it Works:
The VSC indicator calculates the volume-to-transparency ratio by dividing the current volume by the highest volume within the last 10 periods. The ratio is then used to determine the shading intensity of the price candles. Higher volume relative to the recent highest volume results in lower transparency, while lower volume results in higher transparency.
Usage:
To effectively utilize the Volume Shaded Candles indicator, follow these steps:
1. Apply the Volume Shaded Candles indicator to your chart by adding it from the available indicators.
2. Configure the indicator's inputs:
- Specify the color for bullish candles using the "Bullish Color" input.
- Specify the color for bearish candles using the "Bearish Color" input.
3. Observe the shaded candles on the chart:
- Bullish candles are colored with the specified bullish color and shaded according to the volume intensity.
- Bearish candles are colored with the specified bearish color and shaded according to the volume intensity.
4. Interpret the shaded candles:
- Darker shading indicates higher volume during the corresponding candle.
- Lighter shading indicates lower volume during the corresponding candle.
5. Combine the analysis of shaded candles with other technical analysis tools, such as trend lines, support and resistance levels, or candlestick patterns, to identify potential trade setups.
6. Implement appropriate risk management strategies, including setting stop-loss orders and position sizing, to manage your trades effectively and protect your capital.
Awesome Cumulative Volume OscillatorThe indicator is called the "Awesome Cumulative Volume Oscillator" (ACVO), which analyzes the cumulative trading volume of the underlying asset.
The indicator also plots the deviation of the cumulative trading volume from the first SMA value, which is referred to as the "Cumulative Volume Deviation". The zero-line is plotted as a reference point.
If the "Cumulative Volume Deviation" is greater than 0, it indicates an uptrend, as the cumulative trading volume is above the first SMA value. If the "Cumulative Volume Deviation" is less than 0, it indicates a downtrend, as the cumulative trading volume is below the first SMA value.
However, it is important to note that using a single indicator is not sufficient to conduct a comprehensive market analysis. It is necessary to combine multiple indicators and analysis methods to make informed trading decisions.
Slight Swing Momentum Strategy.Introduction:
The Swing Momentum Strategy is a quantitative trading strategy designed to capture mid-term opportunities in the financial markets by combining swing trading principles with momentum indicators. It utilizes a combination of technical indicators, including moving averages, crossover signals, and volume analysis, to generate buy and sell signals. The strategy aims to identify market trends and capitalize on price momentum for profit generation.
Highlights:
The strategy offers several key highlights that make it unique and potentially attractive to traders:
Swing Trading with Momentum: The strategy combines the principles of swing trading, which aim to capture short-to-medium-term price swings, with momentum indicators that help identify strong price trends and potential breakout opportunities.
Technical Indicator Optimization: The strategy utilizes a selection of optimized technical indicators, including moving averages and crossover signals, to filter out the noise and focus on high-probability trading setups. This optimization enhances the strategy's ability to identify favourable entry and exit points.
Risk Management: The strategy incorporates risk management techniques, such as position sizing based on equity and dynamic stop loss levels, to manage risk exposure and protect capital. This helps to minimize drawdowns and preserve profits.
Buy Condition:
The buy condition in the strategy is determined by a combination of factors, including A1, A2, A3, XG, and weeklySlope. Let's break it down:
A1 Condition: The A1 condition checks for specific price relationships. It verifies that the ratio of the highest price to the closing price is less than 1.03, the ratio of the opening price to the lowest price is less than 1.03, and the ratio of the highest price to the previous day's closing price is greater than 1.06. This condition looks for a specific pattern indicating potential bullish momentum.
A2 Condition: The A2 condition checks for price relationships related to the closing price. It verifies that the ratio of the closing price to the opening price is greater than 1.05 or that the ratio of the closing price to the previous day's closing price is greater than 1.05. This condition looks for signs of upward price movement and momentum.
A3 Condition: The A3 condition focuses on volume. It checks if the current volume crosses above the highest volume over the last 60 periods. This condition aims to identify increased buying interest and potentially confirms the strength of the potential upward price movement.
XG Condition: The XG condition combines the A1 and A2 conditions and checks if they are true for both the current and previous bars. It also verifies that the ratio of the closing price to the 5-period EMA crosses above the 9-period SMA of the same ratio. This condition helps identify potential buy signals when multiple factors align, indicating a strong bullish momentum and potential entry point.
Weekly Trend Factor: The weekly slope condition calculates the slope of the 50-period SMA over a weekly timeframe. It checks if the slope is positive, indicating an overall upward trend on a weekly basis. This condition provides additional confirmation that the stock is in an upward trend.
When all of these conditions align, the buy condition is triggered, indicating a favourable time to enter a long position.
Sell Condition:
The sell condition is relatively straightforward in the strategy:
Sell Signal: The sell condition simply checks if the closing price crosses below the 10-period EMA. When this condition is met, it indicates a potential reversal or weakening of the upward price momentum, and a sell signal is generated.
Backtest Outcome:
The strategy was backtested over the period from January 22nd, 1999 to May 3rd, 2023, using daily candlestick charts for the NASDAQ: NVDA. The strategy used an initial capital of 1,000,000 USD, The order quantity is defined as 10% of the equity. The strategy allows for pyramiding with 1 order, and the transaction fee is set at 0.03% per trade. Here are the key outcomes of the backtest:
Net Profit: 539,595.84 USD, representing a return of 53.96%.
Percent Profitable: 48.82%
Total Closed Trades: 127
Profit Factor: 2.331
Max Drawdown: 68,422.70 USD
Average Trade: 4,248.79 USD
Average Number of Bars in Trades: 11, indicating the average duration of the trades.
Conclusion:
In conclusion, the Swing Momentum Strategy is a quantitative trading approach that combines swing trading principles with momentum indicators to identify and capture mid term trading opportunities. The strategy has demonstrated promising results during backtesting, including a significant net profit and a favourable profit factor.
Volume DashboardReleasing Volume Dashboard indicator.
What it does:
The volume dashboard indicator pulls volume from the current session. The current session is defaulted to NYSE trading hours (9:30 - 1600).
It cumulates buying and selling volume.
Buying volume is defined as volume associated with a green candle.
Selling volume is defined as volume associated with a red candle.
It also pulls Put to Call Ratio data from the Ticker PCC (Total equity put to call ratios).
With this data, the indicator displays the current Buy Volume and the Current Sell Volume.
It then uses this to calculate a "Buyer to Seller Ratio". The Buy to Sell ratio is calculated by Buy Volume divided by Sell Volume.
This gives a ratio value and this value will be discussed below.
The Indicator also displays the current Put to Call Ratio from PCC, as well as displays the SMA.
Buy to Sell Ratio:
The hallmark of this indicator is its calculation of the buy to sell ratio.
A buy to sell ratio of 1 or greater means that buyers are generally surpassing sellers.
However, a buy to sell ratio below 1 generally means that sellers are outpacing buyers (0 buyers to 0.xyx sellers).
The SMA is also displayed for buy to sell ratio. Generally speaking, a buy to sell SMA of greater than or equal to 1 means that there are consistent buyers showing up. Below this, means there is inconsistent buying.
Change Analysis:
The indicator also displays the current change of Volume and Put to Call.
Put to Call Change:
A negative change in Put to Call is considered positive, as puts are declining (i.e. sentiment is bullish).
A positive change in Put to Call is considered negative, as puts are increasing (i.e. sentiment is bearish).
The Put to Call change is also displayed in an SMA to see if the negative or positive change is consistent.
Volume Change :
A negative volume change is negative, as buyers are leaving (i.e. sentiment is bearish).
A positive volume change is positive, as buyers are coming in (i.e. sentiment is bullish).
The volume change is also displayed as an SMA to see if the negative or positive change is consistent.
Indicator breakdown:
The indicator displays the total cumulative Buy vs Sell volume at the top.
From there, it displays the Ratio and various other variables it tracks.
The colour scheme will change to signal bearish vs bullish variables. If a box is red, the indicator is assessing it as a bearish indicator.
If it is green, it is considered a bullish indicator.
The indicator will also plot a green up arrow when buying volume surpasses selling volume and a red down arrow when selling volume surpasses buying volume:
Customization:
The indicator is defaulted to regular market hours of the NYSE. If you are using this for trading Futures, or trading pre-market, you will need to manually adjust the session time to include these time periods.
The indicator is defaulted to read volume data on the 1 minute timeframe. My suggestion is to leave it as such, even if you are viewing this on the 5 minute timeframe.
The volume data is best accumulated over the 1 minute timeframe. This permits more reliable reading of volume data.
However, you do have the ability to manually modify this if you wish.
As well, the user can toggle on or off the SMA assessments. If you do not wish to view the SMAs, simply toggle off "Show SMAs" in the settings menu.
The user can also choose what time period the SMA is using. It is defaulted to a 14 candle lookback, but you can modify this to your liking, simply input the desired lookback time in the SMA lookback input box on the settings menu. Please note, the SMA Length setting will apply to ALL of the SMAs.
That is the bulk of the indicator!
As always, let me know your questions or feedback on the indicator below.
Thank you for taking the time to check it out and safe trades!
Volume Profile Matrix [LuxAlgo]The Volume Profile Matrix indicator extends from regular volume profiles by also considering calculation intervals within the calculation window rather than only dividing the calculation window in rows.
Note that this indicator is subject to repainting & back-painting, however, treating the indicator as a tool for identifying frequent points of interest can still be very useful.
🔶 SETTINGS
Lookback: Number of most recent bars used to calculate the indicator.
Columns: Number of columns (intervals) used to calculate the volume profile matrix.
Rows: Number of rows (intervals) used to calculate the volume profile matrix.
🔶 USAGE
The Volume Profile Matrix indicator can be used to obtain more information regarding liquidity on specific time intervals. Instead of simply dividing the calculation window into equidistant rows, the calculation is done through a grid.
Grid cells with trading activity occurring inside them are colored. More activity is highlighted through a gradient and by default, cells with a color that are closer to red indicate that more trading activity took place within that cell. The cell with the highest amount of trading activity is always highlighted in yellow.
Each interval (column) includes a point of control which highlights an estimate of the price level with the highest traded volume on that interval. The level with the highest traded volume of the overall grid is extended to the most recent bar.
Relative VolumeHello traders,
"There's nothing new on Wall Street" is an age-old saying that still shows its relevance in modern day financial markets; volume still serves as a valuable tool for any trader just as it did for those that came and succeeded before us; in order to succeed in modern day markets one has to take it up a notch and dabble in complicated topics, like math. Now I dunno about you reader but I’m not keen on sitting around all day just to watch numbers on a screen; it’s pretty important to add some color into your life before it becomes dull but how can someone add colors into their trading toolkit as an aid rather than bother? With a bit of help from 3 other amazing open-source indicators you too can become a statistics enjoyer by combining math and colors to make pattern recognition much more intuitive and offering more peace of mind when trading. “Sir but how?”, glad you didn’t ask, it helps with simplifying statistics, in this case a Gaussian bellcurve
“HUH?”, you say? Alright class, Gaussian bellcurves for math dislikers 101 is in session
- Imagine that we have a bunch of numbers that we want to graph. We could just draw a line and plot the numbers on it, but that might not be very interesting.
- Instead, we can use the shape of a bell to show how many of each number we have.
- Let's say we have a lot of people and we want to graph how tall they are. We would start by making a line from the shortest person to the tallest person, and then we would draw the bell shape around the line.
- The bell shape is called a "Gaussian Bell Curve," and it shows us how many people are a certain height.
- In the middle of the bell, where it's the widest, we have the most people who are about average height. As we move to the sides of the bell, the curve gets lower because there are fewer people who are really tall or really short.
The bell curve discussed is the main idea for the candle coloring component of this indicator as being able to analyze the distribution of an entire dataset, in this case volume, can alert us when volume/participation in the market is away from its average using color, and therefore an opportunity could be present. Fair warning, it’s important to not strictly focus on volume as volume is meant to be confluence to the current structure of the market rather than causing tunnel vision.
Why 3 indicators to combine?
It starts with the RVOL by Mik3Christ3ns3n indicator as the backbone by calculating the average volume over a specified period of time, and then compares each new volume value to this average to determine whether it is above or below the average. The indicator then normalizes the volume data and calculates the z-score/standard deviation to determine whether the volume is within normal range or is an anomaly beyond a specified threshold which can also be set into an alert to aid in eyeing possible opportunities.
The code also includes Candle Coloring by Morty as it calculates a function to get the z-score for the size of the candle's body, and then compares it to the z-score for volume to determine whether the body size is a factor in the price action.
Finally, the code plots the anomalies and the normalized volume data on the chart using the first RVOL indicator mentioned, and colors the bars of the chart based on whether they are within normal range or are anomalies which comes from using code from veryfid's relative volume indicator.
Overall, this custom technical indicator is best used to identify unusual changes in trading volume, which may indicate potential price movements in the underlying.
How about some examples?
This first example is for my scalpers wanting to get in and out but not having much of an idea where or let alone how; using a tool like VWAP can be great for determining the area value to execute mean reversion trades once a speculator spots a colored candle anomaly at standard deviation band. Works best when VWAP is flat as it signals lack of conviction from both bulls and bears
This second example is for my fire and forget intraweek swing traders who want to execute a higher timeframe trend-following bias. A speculator starting 2023 off notices that the negative sentiment around Binance from late last year has quieted down and has conviction in upside after BTC began an uptrend as monthly VWAP (right chart) has began sloping up as well as a rally with momentum shown with the blue colored candle so the trader waits wait for a pullback for entry. On the chart to the left of the 4H the speculator notices a pullback into the area of interest to do business so a limit bid is left to enter for continued upside in Bitcoin through January 2023 just by keeping things simple
That’s really the main purpose of this indicator: simplicity of statistics for confluence using volume
Volume precedes price and price moves only for narrative to follow- why wait for your subjective Twitter timeline to give you a biased narrative to trade when you can use objective analysis by combining statistics and colors to allow for a cleaner execution process
“But what about risk management?” Glad you didn’t ask reader!
One last example then, we meet our trend following trader again feeling euphoric so they know profit taking season is coming soon but wants to leave emotion out of it. How to go about it? Same idea as our last trend following example: we see on the 4h chart to the right side shows Bitcoin lose and trade back within the 2nd standard deviation of quarterly VWAP which is telling our speculator that the uptrend has broken on top of which notices on the 30 minute chart on the left that aggressive market buyers have been steadily absorbed by limit sellers on multiple occasions of retesting 30,500 shown with the green colored candles and volume bars below, time to sell.
Turns out that selling was proactive risk management because price dumped thereafter
Hope this explanation gave you some useful insights on using statistics as colors from cherrypicked examples, remember that just because my examples are cherrypicked doesn’t invalidate these concepts at all as the market only does two things, initiate aggressive auctions and respond passively to auctions. This tool makes for seeing where that initiative aggressive activity is happening much simpler to deduce if others will respond to an anomaly of initiative aggressive activity or if the aggression will continue.
If there’s just one thing you take from this- simplicity above all, cheers and good luck
Tape (Time and Sales)OVERVIEW
This indicator is a synthesized "Tape" (aka. Time and Sales) from real time market data. It's specifically designed to be performant, expediting trading insights and decisions.
The table contains color-coded price action, volume size, and a timestamp data for each chart update. Because chart updates are independent of exchange orders, 1 chart update may combine more than 1 exchange and/or order. Even so, you're able to see very small and fast order flow changes, made possible by measuring real time volume differentials, and correlating them with price action.
Real time volume differentials are required for this indicator to be most useful. This is not ideal for historical analysis or TradingViews Replay feature.
INPUTS
You can can configure:
Table Position and Text Size
The Timestamp (visibility, format, timezone)
The number of lines to print
Volume Parameters (minimum size, large sizes, decimal precision)
Highlighting and Enlarging large sized prints
All the colors
DEV NOTES
This script illustrates:
The complimentary nature of loops and arrays
A method for iterative table management
Momentum Channel - [Volume Filter]The indicator incorporates a volume filter to ensure that the RSI only moves when the volume is above the moving average of the volume.
The filtered RSI is then used to calculate the Bollinger Bands and moving averages, providing insights into the market dynamics.
It also gives you insight into the bigger timeframes so you can monitor momentum!
Volume Filter Length: Input parameter for the length of the volume filter moving average.
Overview of code:
rsiPeriod: Input parameter for the RSI period.
bandLength: Input parameter for the length of the Bollinger Bands.
lengthrsipl: Input parameter for the length of the fast moving average (MA) on the RSI.
volumeFilterLength: Input parameter for the length of the volume filter moving average.
volumeAvg: Calculates the moving average of the volume using the ta.sma() function with the specified volume filter length.
filteredRsi: Uses the ta.valuewhen() function to obtain the RSI value only when the volume is greater than or equal to the volume moving average. This creates a filtered RSI based on the volume filter.
offs: Calculates the offset value for the Bollinger Bands. It is derived by multiplying 1.6185 with the standard deviation of the filtered RSI using the ta.stdev() function.
Volume Candlesticks [cajole]
This script lets you create the equivalent of "volume candlesticks" in TradingView.
"Volume candlesticks" normally vary their width according to the bar's volume. This script varies COLOUR instead of WIDTH.
Bar charts are also supported.
Candles/Bars are coloured by their distance from the average volume. You can also add a "huge volume" colour to further highlight the most extremely-high volume bars.
Note that volume is extrapolated for incomplete bars by default. So, if the average volume of the past 10 days is 5M shares, and 5M shares trade in the first 10% of today's session, that bar will be coloured as though 50M shares have traded. Set the "Extrapolate" option to 1.0 to disable this.
For this script to work properly, you should set TradingView's default candle/bar colours to be at least 20% transparent. By default, TradingView tends to overlay its own bars on top of indicators.
Nerdy details:
The script works best on a dark background, because it is easier to change the hue of white bars than of black bars. If you find a set of colours that work for white backgrounds, please comment with them!
The geometric mean is used instead of the arithmetic mean, to keep the 'average' from being strongly influenced by spikes. Bars are
then coloured by assuming a normal probability distribution and highlighting outliers. (This means that the first high-volume bars are coloured differently to later ones.)
Volume Divergence IndicatorThe Volume Divergence Indicator is a powerful tool that can help traders identify potential price reversals in the market by analyzing volume data. The indicator has several features, including divergences signals, volume spikes, volume contractions, and volume trend signals.
Unlike most divergence indicators, this one is focused on providing non-repainting alerts. That is why I chose not to use pivot points.
The Volume Divergence Indicator can be used as an overlay or a non-overlay. The overlay mode displays the indicator on top of the price chart, while the non-overlay mode displays the indicator below the price chart.
The indicator has five alerts that can be used to generate alerts:
Bullish Divergence : This alert is generated when prices are making lower lows, but volume is making higher lows. This suggests that the selling pressure is weakening, and a bullish reversal may be imminent.
Bearish Divergence : This alert is generated when prices are making higher highs, but volume is making lower highs. This suggests that the buying pressure is weakening, and a bearish reversal may be imminent.
Volume Spike : This alert is generated when volume spikes above a certain threshold, such as two standard deviations above the moving average. This suggests that there is unusual buying or selling activity in the market, and traders may want to pay attention to the price movements that follow.
Volume Contraction : This alert is generated when volume contracts to a certain level, such as two standard deviations below the moving average. This suggests that there is little buying or selling activity in the market, and traders may want to be cautious until volume picks up again.
Volume Trend : This alert is generated when volume trends above or below the moving average for a certain number of periods, such as five or ten. This suggests that there is a sustained increase or decrease in buying or selling pressure, and traders may want to adjust their trading strategy accordingly.
To customize the indicator settings, users can adjust the following inputs:
Choose overlay mode: select either Overlay or Non-Overlay
Price and volume lookback: set the number of bars to look back for price and volume data
Bull and bear sensitivity: adjust the sensitivity of the bullish and bearish divergences
Volume MA length: set the length of the moving average used to calculate volume spikes and contractions
Sensitivity of spikes: adjust the sensitivity of the volume spikes
Sensitivity of contractions: adjust the sensitivity of the volume contractions
Trend sensitivity: set the number of periods to identify the volume trend
The Volume Divergence Indicator can be a valuable addition to any trader's toolkit. It can help traders identify potential price reversals in the market, as well as unusual buying or selling activity.
I am open to suggestions for further updates or additions.
Price Action Trading StrategyIn this strategy, we define the high and low of the previous candle, and then check whether the current candle's high or low is higher or lower than the previous candle's high or low, respectively. If there's a new high, we enter a long position, and if there's a new low, we enter a short position. We also set exit conditions to close the position if the price drops below the previous low or rises above the previous high.
Please note that this is a simple example and should not be used as a standalone trading strategy. It is important to conduct thorough backtesting and consider other factors such as risk management before implementing any trading strategy.
Display Trade Volume with MA Angle and Price VelocityThis Pine Script indicator is designed to provide traders with a visual representation of trade volume, moving average (MA) angle, and price velocity on a chart. The primary components of this indicator are:
Trade Volume: The indicator compares the current bar's trade volume with the average volume over a user-defined lookback period. The volume is displayed as either "Low" or "Trade" in a table, with red or green background color, respectively, to indicate whether it's below or above the average volume.
MA Angle: The indicator calculates the angle of the moving average (either Simple, Exponential, or Hull) over a user-defined length. A positive angle is shown in green, while a negative angle is shown in red. The angle is displayed in degrees in the table.
Price Velocity: This component calculates the velocity of price movement by comparing the difference between high and low prices over a user-defined lookback period. It then displays the velocity as either "Slow" or "Fast" in the table, with red or green background color, respectively, depending on whether it's below or above the average difference.
The indicator also includes alert conditions for high and low volume situations, notifying the trader when the current bar's volume is significantly higher or lower than the average volume.
Vector CandlesTitle: Vector Candles Indicator with PVSRA
Short Description: Visualize climax and above-average volume candles using PVSRA method for trend reversals and significant moves.
Long Description:
The Vector Candles Indicator with PVSRA (Price, Volume, Support, and Resistance Analysis) is designed to help traders visualize climax and above-average volume candles on the chart, which can indicate potential trend reversals and significant market moves. This indicator is suitable for various financial instruments, including stocks, forex, and cryptocurrencies.
This script uses the PVSRA method to determine the candle colour based on volume and price action. By analysing the relationships between price, volume, and support/resistance levels, it allows traders to better understand the market dynamics and make informed decisions.
The indicator displays candles in different colours to represent the volume and price action:
Climax Up (Lime): Bullish candle with high volume
Climax Down (Red): Bearish candle with high volume
Above Average Up (Blue): Bullish candle with above-average volume
Above Average Down (Fuchsia): Bearish candle with above-average volume
Normal Up (Gray): Bullish candle with normal volume
Normal Down (Dark Gray): Bearish candle with normal volume
The script is designed to work on the TradingView platform and is based on original contributions by plasmapug, infernix, peshocore, and xtech5192. It has been modified RapidFireOG for easy integration into your trading setup.
Add this powerful tool to your chart and enhance your trading analysis with the Vector Candles Indicator with PVSRA.
ETH Volume*Close Top Exchanges in millions $The script is designed to create a custom indicator that calculates the total volume of Ethereum traded on various exchanges, calculated in millions of dollars, and then plots a histogram of that volume along with a Simple Moving Average (SMA) of the volume.
The script starts by setting some input parameters such as the length of the SMA and the range period. It then requests data on the volume of Ethereum traded on several exchanges such as Binance, Coinbase, Kraken, and others. It calculates the combined total volume across all these exchanges and multiplies it by the close price of Ethereum to get a value in millions of dollars.
The script then checks if the volume is rising while the price is lower than the previous 5 bars high and higher than the previous 5 bars low, and if so, it sets the color of the histogram bars to white. It then plots the histogram bars and the SMA on the chart.
BTC Volume*Close from Top ExchangesThe script is designed to create a custom indicator that calculates the total volume of Bitcoin traded on various exchanges, calculated in millions of dollars, and then plots a histogram of that volume along with a Simple Moving Average (SMA) of the volume.
The script starts by setting some input parameters such as the length of the SMA and the range period. It then requests data on the volume of Bitcoin traded on several exchanges such as Binance, Coinbase, Kraken, and others. It calculates the combined total volume across all these exchanges and multiplies it by the close price of Bitcoin to get a value in millions of dollars.
The script then checks if the volume is rising while the price is lower than the previous 5 bars high and higher than the previous 5 bars low, and if so, it sets the color of the histogram bars to white. It then plots the histogram bars and the SMA on the chart.
