[TTI] Zanger Volume Ratio - Intraday––––HISTORY & CREDITS 🏦
The Zanger Volume Ratio - Intraday indicator is inspired by the work of Dan Zanger, a renowned trader and creator of the Zanger Volume Ratio tool. This specific adaptation of the ratio is designed for the TradingView platform and focuses on intraday trading. Dan Zanger used this same method of reading the chart to establish a world record in turning HKEX:10 ,775 into HKEX:18 ,000,000 in under 2 years.
––––WHAT IT DOES 💡
The Zanger Volume Ratio - Intraday indicator measures the estimated end-of-day volume percentage based on intraday (depending on the timeframe of your chart) comparisons for the last X days (input in the settings). It provides insights into the stock's trading volume in real-time throughout the trading day, giving traders an idea of the stock's relative volume compared to its recent trading history. For instance if you add it to a 5min chart the ratio represents the estimated end of day volume percent based on the last 3 days, the indicator will compare the cumulative volume of the current day to the X days back cumulative average up to that same point in time and tell you how it is around the thresholds.
The indicator categorizes the volume into five levels: Extreme, High, Average, Light, and Dry Up, each represented by different colors on the chart. It also displays a pace indicator, which shows whether the volume is increasing or decreasing during the trading session.
There is also a label that shows the current reading and its pace. The pace is the indication wether the volume ratio pace is increasing and picking up or it is slowing down.
Thesholds
👉EXTREME (red): >200, means "Volume is 200% of average daily volume
👉HIGH (magenta): 110
👉AVERAGE (peach): 85
👉LIGHT (orange): 60
👉DRY (gray): <60
––––HOW TO USE IT 🔧
To use the Zanger Volume Ratio - Intraday indicator effectively, follow these steps:
1️⃣ Apply the indicator to your TradingView chart with an intraday timeframe (>=1min and less than 1 day).
2️⃣Observe the real-time volume levels and their corresponding categories (Extreme, High, Average, Light, and Dry Up) to understand the current volume dynamics.
3️⃣Keep an eye on the pace indicator (arrows) to see if the volume is increasing or decreasing during the session.
4️⃣Use the information provided by the indicator to confirm trade setups, identify potential breakouts, or detect possible reversals. For example, a stock breaking out of a key area with high or extreme volume and an increasing pace arrow may indicate a strong upward move. Conversely, a stock pulling back on light or dry up volume could signal a continuation of the trend once the volume picks up again.
Remember to combine the Zanger Volume Ratio - Intraday indicator with other technical analysis tools and your own trading strategy to make informed decisions.
