OPEN-SOURCE SCRIPT
Elastic Buy-Sell Volume Wighted Supertrend

Credits: This uses Trading View's buy and sell volume script and the Super trend script.
Elastic Buy-Sell Volume Wighted Supertrend can be used like a traditional supertrend indicator however we do not have to arbitrarily choose a multiplier depending on the stock and time frame the code dynamically adjust the multiplier and this is described below.
The buy and sell ATR (Average True Range) play a crucial role in determining the levels for potential buy and sell signals in the market. These ATR values are calculated based on volume-weighted averages, providing insights into the strength of buying and selling pressures. By incorporating volume into the ATR calculation, the indicator can better adapt to market dynamics, as volume often reflects the intensity of price movements. Instead of using Volume as whole this uses up and down volume derived from lower time frames which is used to calculate buy and sell ATR.
The multiplier is a key factor in the Supertrend calculation, which adjusts the width of the trend bands. The multiplier in this indicator dynamically adjusts itself based on two key components: the ratio of the asset's Average True Range (ATR) to that of a broader market benchmark and the coefficient of variation (CV) of the True Range (TR). The ratio comparison provides a historical context of the asset's volatility relative to the wider market over a longer time frame, while the CV accounts for short-term fluctuations in volatility.
By comparing the asset's ATR to that of the benchmark, traders gain insights into the asset's historical volatility behavior. A higher multiplier suggests that the asset's volatility has historically exceeded that of the benchmark, indicating potentially larger price movements compared to the broader market. Conversely, a lower multiplier suggests the opposite.
The CV component measures short-term variability in the asset's volatility, ensuring that the multiplier adapts to both long-term trends and short-term fluctuations. This combined approach enables traders to make informed decisions, considering both historical volatility relative to the broader market and short-term variability. Ultimately, the dynamic multiplier enhances traders' ability to adjust their strategies effectively across various market conditions.
Overall, the use of buy and sell ATR, along with a dynamically adjusted multiplier, enhances the indicator's ability to identify trend directions and to use a dynamic stop loss level.
Elastic Buy-Sell Volume Wighted Supertrend can be used like a traditional supertrend indicator however we do not have to arbitrarily choose a multiplier depending on the stock and time frame the code dynamically adjust the multiplier and this is described below.
The buy and sell ATR (Average True Range) play a crucial role in determining the levels for potential buy and sell signals in the market. These ATR values are calculated based on volume-weighted averages, providing insights into the strength of buying and selling pressures. By incorporating volume into the ATR calculation, the indicator can better adapt to market dynamics, as volume often reflects the intensity of price movements. Instead of using Volume as whole this uses up and down volume derived from lower time frames which is used to calculate buy and sell ATR.
The multiplier is a key factor in the Supertrend calculation, which adjusts the width of the trend bands. The multiplier in this indicator dynamically adjusts itself based on two key components: the ratio of the asset's Average True Range (ATR) to that of a broader market benchmark and the coefficient of variation (CV) of the True Range (TR). The ratio comparison provides a historical context of the asset's volatility relative to the wider market over a longer time frame, while the CV accounts for short-term fluctuations in volatility.
By comparing the asset's ATR to that of the benchmark, traders gain insights into the asset's historical volatility behavior. A higher multiplier suggests that the asset's volatility has historically exceeded that of the benchmark, indicating potentially larger price movements compared to the broader market. Conversely, a lower multiplier suggests the opposite.
The CV component measures short-term variability in the asset's volatility, ensuring that the multiplier adapts to both long-term trends and short-term fluctuations. This combined approach enables traders to make informed decisions, considering both historical volatility relative to the broader market and short-term variability. Ultimately, the dynamic multiplier enhances traders' ability to adjust their strategies effectively across various market conditions.
Overall, the use of buy and sell ATR, along with a dynamically adjusted multiplier, enhances the indicator's ability to identify trend directions and to use a dynamic stop loss level.
开源脚本
本着TradingView的真正精神,此脚本的创建者将其开源,以便交易者可以查看和验证其功能。向作者致敬!虽然您可以免费使用它,但请记住,重新发布代码必须遵守我们的网站规则。
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。
开源脚本
本着TradingView的真正精神,此脚本的创建者将其开源,以便交易者可以查看和验证其功能。向作者致敬!虽然您可以免费使用它,但请记住,重新发布代码必须遵守我们的网站规则。
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。