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Trades in Favor
Trades in Favor Indicator
Overview
The Trades in Favor indicator is a volume-weighted momentum oscillator that helps traders identify market conditions favoring long or short positions. It analyzes the relationship between price movements and volume to determine whether buying or selling pressure is dominating the market.
How It Works
The indicator calculates the percentage of volume-weighted price movements that are bullish versus bearish over a specified lookback period. It outputs values between 0-100:
Values above 70: Short Trade Zone (bearish conditions)
Values below 30: Long Trade Zone (bullish conditions)
Values around 50: Neutral Zone (balanced conditions)
Key Features
Volume-Weighted Analysis: Incorporates volume data for more accurate momentum readings
Clear Trading Zones: Visual zones with labels for immediate context
Customizable Parameters: Adjustable calculation length and smoothing periods
Built-in Alerts: Notifications when entering different trading zones
Information Table: Real-time display of current readings and percentages
Parameters
Calculation Length (20): Number of bars for momentum calculation
Smoothing Period (5): Moving average smoothing for cleaner signals
Short Trade Zone (70): Upper threshold for short trade conditions
Long Trade Zone (30): Lower threshold for long trade conditions
Trading Applications
Trend Confirmation: Validate trend direction with volume-backed momentum
Entry Timing: Identify optimal entry points in respective trade zones
Market Sentiment: Gauge overall buying vs selling pressure
Risk Management: Avoid trades against dominant market flow
Visual Elements
White oscillator line with clear zone boundaries
Background coloring in extreme zones
On-chart labels for immediate context
Information table showing current percentages
Customizable alert conditions
Best Practices
Use in conjunction with other technical analysis tools
Consider multiple timeframes for confirmation
Pay attention to volume spikes in extreme zones
Watch for divergences between price and the indicator
Perfect for swing traders, day traders, and anyone looking to align their trades with volume-backed market momentum.
Overview
The Trades in Favor indicator is a volume-weighted momentum oscillator that helps traders identify market conditions favoring long or short positions. It analyzes the relationship between price movements and volume to determine whether buying or selling pressure is dominating the market.
How It Works
The indicator calculates the percentage of volume-weighted price movements that are bullish versus bearish over a specified lookback period. It outputs values between 0-100:
Values above 70: Short Trade Zone (bearish conditions)
Values below 30: Long Trade Zone (bullish conditions)
Values around 50: Neutral Zone (balanced conditions)
Key Features
Volume-Weighted Analysis: Incorporates volume data for more accurate momentum readings
Clear Trading Zones: Visual zones with labels for immediate context
Customizable Parameters: Adjustable calculation length and smoothing periods
Built-in Alerts: Notifications when entering different trading zones
Information Table: Real-time display of current readings and percentages
Parameters
Calculation Length (20): Number of bars for momentum calculation
Smoothing Period (5): Moving average smoothing for cleaner signals
Short Trade Zone (70): Upper threshold for short trade conditions
Long Trade Zone (30): Lower threshold for long trade conditions
Trading Applications
Trend Confirmation: Validate trend direction with volume-backed momentum
Entry Timing: Identify optimal entry points in respective trade zones
Market Sentiment: Gauge overall buying vs selling pressure
Risk Management: Avoid trades against dominant market flow
Visual Elements
White oscillator line with clear zone boundaries
Background coloring in extreme zones
On-chart labels for immediate context
Information table showing current percentages
Customizable alert conditions
Best Practices
Use in conjunction with other technical analysis tools
Consider multiple timeframes for confirmation
Pay attention to volume spikes in extreme zones
Watch for divergences between price and the indicator
Perfect for swing traders, day traders, and anyone looking to align their trades with volume-backed market momentum.
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。