OPEN-SOURCE SCRIPT
Volume Imbalance

# Volume Imbalance Indicator
## Description
The Volume Imbalance Indicator is a technical analysis tool that measures the imbalance between bullish and bearish volume over a specified period. This indicator helps traders identify the prevailing market sentiment and potential reversal points.
## How It Works
The indicator analyzes trading volume for each candle:
- **Bull Volume** - volume of candles where the closing price is higher than the opening price (green candles)
- **Bear Volume** - volume of candles where the closing price is lower than the opening price (red candles)
- **Imbalance** is calculated as the difference between the sum of bull volume and bear volume over the set period
## Signal Interpretation
- **Positive values (green histogram)** - bullish volume dominates, indicating buyer strength
- **Negative values (red histogram)** - bearish volume dominates, indicating seller strength
- **Zero line** - equilibrium between buyers and sellers
## Trading Applications
1. **Trend Confirmation** - imbalance in the direction of the trend confirms its strength
2. **Divergence Analysis** - divergence between price and indicator may signal potential reversals
3. **Accumulation/Distribution Zones** - prolonged periods of imbalance indicate large player activity
## Settings
- **Period** - number of candles for calculating the imbalance (default: 20)
## Features
- Displays in a separate panel below the main chart
- Histogram format for better visualization
- Color coding: green for bullish imbalance, red for bearish imbalance
- Suitable for all timeframes and trading instruments
This indicator is particularly effective when combined with other technical analysis tools for comprehensive market assessment.
## Description
The Volume Imbalance Indicator is a technical analysis tool that measures the imbalance between bullish and bearish volume over a specified period. This indicator helps traders identify the prevailing market sentiment and potential reversal points.
## How It Works
The indicator analyzes trading volume for each candle:
- **Bull Volume** - volume of candles where the closing price is higher than the opening price (green candles)
- **Bear Volume** - volume of candles where the closing price is lower than the opening price (red candles)
- **Imbalance** is calculated as the difference between the sum of bull volume and bear volume over the set period
## Signal Interpretation
- **Positive values (green histogram)** - bullish volume dominates, indicating buyer strength
- **Negative values (red histogram)** - bearish volume dominates, indicating seller strength
- **Zero line** - equilibrium between buyers and sellers
## Trading Applications
1. **Trend Confirmation** - imbalance in the direction of the trend confirms its strength
2. **Divergence Analysis** - divergence between price and indicator may signal potential reversals
3. **Accumulation/Distribution Zones** - prolonged periods of imbalance indicate large player activity
## Settings
- **Period** - number of candles for calculating the imbalance (default: 20)
## Features
- Displays in a separate panel below the main chart
- Histogram format for better visualization
- Color coding: green for bullish imbalance, red for bearish imbalance
- Suitable for all timeframes and trading instruments
This indicator is particularly effective when combined with other technical analysis tools for comprehensive market assessment.
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。