Cumulative Volume Delta with MACVD is a volume-based indicator that helps analyze buying and selling pressure in the market. It tracks the difference between buying volume and selling volume, showing whether the market is being accumulated or distributed.
How CVD Works
Volume Delta Calculation:
If price closes higher than the previous bar → Volume is added to CVD (buying pressure).
If price closes lower than the previous bar → Volume is subtracted from CVD (selling pressure).
CVD Cumulative Calculation:
Keeps a running total of volume delta over time.
If the CVD line is rising, buyers are in control; if falling, sellers dominate.
Moving Average on CVD:
A moving average (MA) smooths out the CVD line, helping identify trends more clearly.
Common choices: EMA (Exponential MA) or SMA (Simple MA).
价量趋势 (PVT)
Draw on Liquidity [PhenLabs]📊 Draw on Liquidity (DOL) Indicator
Version: PineScript™ v6
Description
The Draw on Liquidity (DOL) indicator is an advanced technical analysis tool designed to identify and visualize significant liquidity zones in the market. It combines volume analysis, pivot point detection, and real-time proximity alerts to help traders identify potential support and resistance levels where significant trading activity occurs. The indicator features dual display modes, adaptive volume thresholds, and a comprehensive real-time dashboard.
🔧 Components
• Liquidity Detection: Advanced pivot point analysis with volume validation
• Volume Analysis: Adaptive volume threshold system
• Display Modes: Historical and Current visualization options
• Proximity Detection: Real-time price-to-level distance monitoring
• Visual Dashboard: Dynamic status display with alert system
🚨 Important Dashboard Features 🚨
The dashboard provides real-time information about:
• High Draw Zones: Resistance levels with significant liquidity
• Low Draw Zones: Support levels with high trading activity
• Current Price: Real-time price monitoring
• Active Alerts: Proximity warnings when price approaches liquidity zones
📈 Visualization
• Historical Mode: Displays all past and present liquidity zones
• Current Mode: Shows only active, unhit liquidity levels
• Color-coded lines: Blue for high liquidity, Red for low liquidity
• Dynamic line extension: Updates with price movement
• Alert indicators: Visual signals when price approaches zones
Historical Visualization
Current Visualization
📌 Usage Guidelines
The indicator is highly customizable with several key parameters:
Pivot Settings:
• Shorter lengths (3-7): More frequent zones, suitable for scalping
• Longer lengths (7-15): Major zones, better for swing trading
Volume Analysis:
• Lower multiplier (1.5-2.0): More zones, higher sensitivity
• Higher multiplier (2.0-3.0): Major zones only, reduced noise
✅ Best Practices:
• Start with default settings and adjust based on timeframe
• Use Historical mode for analysis, Current mode for active trading
• Monitor dashboard alerts for potential trade setups
• Combine with trend analysis for better entry/exit points
⚠️ Limitations
• Requires sufficient volume data for accurate analysis
• Performance varies with market volatility
• Historical mode may become visually cluttered on longer timeframes
• Best performance during regular market hours
What Makes This Unique
• Dual Display System: Choose between historical analysis and current trading modes
• Volume-Validated Zones: Only marks levels with significant trading activity
• Real-time Proximity Alerts: Dynamic warnings when approaching liquidity zones
• Adaptive Threshold System: Automatically adjusts to market conditions
• Comprehensive Dashboard: All-in-one view of current market status
🔧 How It Works
The indicator processes market data through three main components:
1. Liquidity Detection (40% weight):
• Identifies pivot points using customizable lookback periods
• Validates levels with volume analysis
• Marks significant zones based on combined criteria
2. Volume Analysis (40% weight):
• Calculates dynamic volume thresholds
• Compares current volume to moving average
• Filters out low-volume noise
3. Proximity Analysis (20% weight):
• Monitors price distance to active zones
• Triggers alerts based on customizable thresholds
• Updates dashboard status in real-time
💡 Note: For optimal results, combine with price action analysis and consider using multiple timeframes for confirmation. The indicator performs best in markets with consistent volume and clear trend structure.
Gufran - Volume DivergenceThis indicator detects bullish and bearish divergences by analyzing price action, volume trends, and RSI (Relative Strength Index) for added confirmation. It highlights key market reversals or trend continuations by identifying when price movement diverges from volume dynamics, providing traders with actionable insights for entry and exit points.
Key Features:
Divergence Detection:
Bullish Divergence: Price makes a lower low, but volume shows higher lows, signaling potential upward reversals.
Bearish Divergence: Price makes a higher high, but volume shows lower highs, signaling potential downward reversals.
RSI Confirmation:
Bullish Signals: Confirmed when RSI is in the oversold zone.
Bearish Signals: Confirmed when RSI is in the overbought zone (optional relaxation of RSI conditions available).
Normalized Volume Analysis:
Volume is scaled to the price range, ensuring clear and meaningful visualization alongside price action.
Customizable Parameters:
Lookback Period: Define how far back the script looks to identify divergences.
Volume Significance: Adjust the threshold for significant volume movements.
RSI Levels: Fine-tune overbought and oversold thresholds for optimal signal accuracy.
Gap Control: Avoid clutter by setting a minimum number of candles between successive divergence signals.
Clear Visual Representation:
Bullish Divergence: Marked with green labels and connecting lines.
Bearish Divergence: Marked with red labels and connecting lines.
Dotted lines show normalized volume divergence, while solid lines indicate price divergence.
Ideal For:
Traders who rely on volume dynamics to validate price movements.
Those looking for an added layer of confidence using RSI to filter false signals.
Swing and intraday traders aiming to identify market reversal zones or continuation patterns.
Customization Options:
Lookback Period: Adjustable range for detecting highs and lows.
Volume Threshold: Define the multiplier for significant volume changes.
RSI Settings: Tailor overbought/oversold levels to suit your trading style.
Relax RSI Condition: Toggle stricter or more flexible conditions for bearish divergences.
How to Use:
Add the indicator to your chart and configure the parameters to fit the asset and timeframe you are trading.
Look for:
Green “Bullish Div” labels near price lows for potential buying opportunities.
Red “Bearish Div” labels near price highs for potential selling opportunities.
Use this indicator in combination with other tools like support/resistance levels, trendlines, or moving averages for a comprehensive trading strategy.
Disclaimer:
This indicator is a tool for educational purposes and should not be used as a standalone trading signal. Always conduct proper risk management and consider additional technical/fundamental analysis before making trading decisions.
Red Pill VWAP/RSI DivergenceI created this indicator to identify moments in time VWAP and RSI are diverging.
Ideally useful in strong trend, bullish or bearish, as a potential entry point on a pull back for continuation. Not to be used as a stand alone signal, but rather in conjunction with any possible trend/momentum strategy.
VWAP is identified as the blue line. Green label(blue pill) is your potential entry on a pull back when price is above, stacked EMAS & VWAP for a long position. Red label(red pill) is your potential entry on a pull back when price is below inversely stacked EMAS & VWAP for a short position. These are the 2 ideal scenarios I have found. Please back test for yourself
I have had great results but must emphasis this is not a stand alone buy/sell. I use it in confluence to add conviction to my current A+ setups.
***Pivot ribbon in chart created by Saty Mahajan set to 3/10 time warp works ideal in conjunction.
***please note false positive and false negative signals can occur, particularly in chop
I hope you find this helpful . TRADE SAFE!
X.Y Format Candle Volume & CompressionThe Volume & Compression Indicator is designed to help traders identify significant market moves by displaying two key metrics above each candle. The top number represents the Volume Ratio, which compares the current candle's volume to the average volume of recent candles. For example, a reading of 2.5 means the current volume is 2.5 times higher than average. When volume exceeds 9.9 times the average, the indicator displays an up or down arrow instead of a number, indicating extremely high volume in that direction.
The bottom number shows the Compression Ratio, which measures the relationship between volume and price movement. This helps identify when large amounts of volume are moving price significantly (low compression) versus when high volume isn't resulting in much price movement (high compression). High compression often indicates accumulation or distribution phases, while low compression with high volume typically suggests strong directional moves.
The indicator includes visual cues to help spot patterns. Dots appear above candles when both high volume and high compression persist over several candles, potentially indicating accumulation phases. Arrows mark possible pivot points after these accumulation periods. Additionally, the candles themselves can display a gradient color that intensifies with increased compression, making it easier to spot areas of interest.
For trading purposes, watch for volume spikes (top number above 2.0) as they can signal potential reversal points or confirm breakouts. High compression readings might precede breakouts, while low compression with high volume often confirms strong trend moves. The most significant signals often come when both metrics show high readings over multiple candles, suggesting sustained institutional interest.
Twiggs Money FlowTwiggs Money Flow (TMF)
This indicator is an implementation of the Twiggs Money Flow (TMF), a volume-based tool designed to measure buying and selling pressure over a specified period. TMF is an enhancement of Chaikin Money Flow (CMF), utilizing more sophisticated smoothing techniques for improved accuracy and reduced noise. This version is highly customizable and includes advanced features for both new and experienced traders.
What is Twiggs Money Flow?
Twiggs Money Flow was developed by Colin Twiggs to provide a clearer picture of market momentum and the balance between buyers and sellers. It uses a combination of price action, trading volume, and range calculations to assess whether a market is under buying or selling pressure.
Unlike traditional volume indicators, TMF incorporates Weighted Moving Averages (WMA) by default but allows for other moving average types (SMA, EMA, VWMA) for added flexibility. This makes it adaptable to various trading styles and market conditions.
Features of This Script:
Customizable Moving Average Types:
Select from SMA , EMA , WMA , or VWMA to smooth volume and price-based calculations.
Tailor the indicator to align with your trading strategy or the asset's behavior.
Optional HMA Smoothing:
Apply Hull Moving Average (HMA) smoothing for a cleaner, faster-reacting TMF line.
Perfect for traders who want to reduce lag and capture trends earlier.
Dynamic Thresholds for Signal Filtering:
Set user-defined thresholds for Long (LT) and Short (ST) signals to highlight significant momentum.
Focus on actionable trends by ignoring noise around neutral levels.
Bar Coloring for Visual Clarity:
Automatically colors your chart bars based on TMF values:
Aqua for strong bullish signals (above the long threshold).
Fuchsia for strong bearish signals (below the short threshold).
Gray for neutral or undecided market conditions.
Ensures that trend direction and strength are visually intuitive.
Configurable Lookback Period:
Adjust the sensitivity of TMF by customizing the length of the lookback period to suit different timeframes and market conditions.
How It Works:
True Range Calculation: The script determines the high, low, and close range to calculate buying and selling pressure.
Adjusted Volume: Incorporates the relationship between price and volume to gauge whether trading activity is favoring buyers or sellers.
Weighted Moving Averages (WMAs): Smooths both volume and adjusted volume values to eliminate erratic fluctuations.
TMF Line: Computes the ratio of adjusted volume to total volume, representing the net buying/selling pressure as a percentage.
HMA Option (if enabled): Smooths the TMF line further to reduce lag and enhance trend identification.
Bar Coloring Logic:
Bars are colored dynamically based on TMF values, thresholds, and smoothing preferences.
Provides an at-a-glance understanding of market conditions.
Input Parameters:
Lookback Period: Defines the number of bars used to calculate TMF (default: 21).
Use HMA Smoothing: Toggle Hull Moving Average smoothing (default: true).
HMA Smoothing Length: Length of the HMA smoothing period (default: 14).
Moving Average Type: Select SMA, EMA, WMA, or VWMA (default: WMA).
Long Threshold (LT): Threshold value above which a long signal is considered (default: 0).
Short Threshold (ST): Threshold value below which a short signal is considered (default: 0).
How to Use It:
Confirm Trends: TMF can validate trends by identifying periods of sustained buying or selling pressure.
Divergence Signals: Watch for divergences between price and TMF to anticipate potential reversals.
Filter Trades: Use the thresholds to ignore weak signals and focus on strong trends.
Combine with Other Indicators: Pair TMF with trend-following or momentum indicators (e.g., RSI, Bollinger Bands) for a comprehensive trading strategy.
Example Use Cases:
Spotting breakouts when TMF crosses above the long threshold.
Identifying sell-offs when TMF dips below the short threshold.
Avoiding sideways markets by ignoring neutral (gray) bars.
Notes:
This indicator is highly customizable, making it versatile across different assets (e.g., stocks, crypto, forex).
While the default settings are robust, tweaking the lookback period, moving average type, and thresholds is recommended for different trading instruments or strategies.
Always backtest thoroughly before applying the indicator to live trading.
This version of Twiggs Money Flow goes beyond standard implementations by offering advanced smoothing, custom thresholds, and enhanced visual feedback to give traders a competitive edge.
Add it to your charts and experience the power of volume-driven analysis!
MERCURY-PRO by DrAbhiramSivprasd“MERCURYPRO”
The MERCURYPRO indicator is a custom technical analysis tool designed to provide dynamic trend signals based on a combination of the Chande Momentum Oscillator (CMO) and Standard Deviation (StDev). This indicator helps traders identify trend reversals or continuation based on the behavior of the price and momentum.
Key Features:
• Source Input: The indicator works with any price data, with the default set to close, which represents the closing price of each bar.
• Length Input: A period (default value 9) is used to determine the calculation window for the Chande Momentum Oscillator and Standard Deviation.
• Fixed CMO Length Option: Users can choose whether to use a fixed CMO length of 9 or adjust the length to the user-defined pds value.
• Calculation Method: The indicator allows switching between using the Chande Momentum Oscillator (CMO) or Standard Deviation (StDev) for the momentum calculation.
• Alpha: The smoothing factor used in the calculation of the MERCURYPRO value, which is based on the length of the period input (pds).
Core Calculation:
1. Momentum Calculation: The script calculates the momentum by determining the change in the source price (e.g., close) from one period to the next.
2. Chande Momentum Oscillator (CMO): The positive and negative momentum components are calculated and then summed over the specified period. This value is normalized to a percentage to determine the momentum strength.
3. K Value Calculation: The script selects either the CMO or Standard Deviation (depending on the user setting) to calculate the k value, which represents the dynamic price momentum.
4. MERCURYPRO Line: The final output of the indicator, MERCURYPRO, is computed using a weighted average of the k value and the previous MERCURYPRO value. The line is smoothed using the Alpha parameter.
Plot and Signal Generation:
• Color Coding: The line is color-coded based on the direction of MERCURYPRO:
• Blue: The trend is bullish (MERCURYPRO is rising).
• Maroon: The trend is bearish (MERCURYPRO is falling).
• Default Blue: Neutral or sideways market conditions.
• Plotting: The MERCURYPRO line is plotted with varying colors depending on the trend direction.
Alerts:
• Color Change Alert: The indicator has an alert condition based on when the MERCURYPRO line crosses its previous value. This helps traders stay informed about potential trend reversals or continuation signals.
Use Case:
• Trend Confirmation: Traders can use the MERCURYPRO indicator to identify whether the market is in a strong trend or not.
• Signal for Entries/Exits: The color change and crossovers of the MERCURYPRO line can be used as entry or exit signals, depending on the trader’s strategy.
Overall Purpose:
The MERCURYPRO indicator combines momentum analysis with smoothing techniques to offer a dynamic, responsive tool for identifying market trends and potential reversals. It is particularly useful in conjunction with other technical indicators to provide confirmation for trade setups.
How to Use the MERCURYPRO Indicator:
The MERCURYPRO indicator is designed to help traders identify trend reversals and market conditions. Here are a few ways you can use it:
1. Trend Confirmation (Bullish or Bearish)
• Bullish Trend: When the MERCURYPRO line is colored Blue, it indicates a rising trend, suggesting that the market is bullish.
• Action: You can consider entering long positions when the line turns blue, or holding your existing positions if you’re already long.
• Bearish Trend: When the MERCURYPRO line is colored Maroon, it signals a downward trend, indicating a bearish market.
• Action: You may consider entering short positions or closing any long positions when the line turns maroon.
2. Trend Reversal Alerts
• Color Change: The MERCURYPRO indicator changes color when there’s a trend reversal. The alert condition triggers when the MERCURYPRO crosses above or below its previous value, signaling a potential shift in the trend.
• Action: You can use this alert as a signal to monitor potential entry or exit points for trades. For example, a crossover from maroon to blue could indicate a potential buying opportunity, while a crossover from blue to maroon could suggest a selling opportunity.
3. Use with Other Indicators for Confirmation
• While the MERCURYPRO provides valuable trend insights, it’s often more effective when used in combination with other indicators like RSI (Relative Strength Index), MACD, or moving averages to confirm signals.
• Example: If MERCURYPRO turns blue and RSI is above 50, it may signal a strong bullish trend, enhancing the confidence to enter a long trade.
4. Divergence
• Watch for divergence between the MERCURYPRO line and the price chart:
• Bullish Divergence: If the price makes new lows while MERCURYPRO is showing higher lows, it suggests a potential bullish reversal.
• Bearish Divergence: If the price makes new highs while MERCURYPRO is showing lower highs, it suggests a potential bearish reversal.
Example of Use:
• Example 1: If the MERCURYPRO line changes from maroon to blue, you might enter a long position. After the MERCURYPRO line turns blue, use an alert to monitor the price action. If other indicators (like RSI) also suggest strength, your confidence in the trade will increase.
• Example 2: If the MERCURYPRO line shifts from blue to maroon, it could be a signal to close long positions and consider shorting the market if other conditions align (e.g., moving averages also turn bearish).
Warning for Using the MERCURYPRO Indicator:
1. Lagging Indicator:
• The MERCURYPRO is a lagging indicator, meaning it responds to price changes after they have occurred. This may delay entry and exit signals, and it’s crucial to combine it with other leading indicators to get timely information.
2. False Signals in Range-bound Markets:
• In choppy or sideways markets, the MERCURYPRO line can produce false signals, flipping between blue and maroon frequently without showing a clear trend. It’s important to avoid trading based on these false signals when the market is not trending.
3. Overreliance on One Indicator:
• Relying solely on MERCURYPRO can be risky. Always confirm signals with additional tools like volume analysis, price action, or other indicators to increase the accuracy of your trades.
4. Market Conditions Matter:
• The indicator may work well in trending markets, but in highly volatile or news-driven environments, it may provide misleading signals. Ensure that you take market fundamentals and external news events into consideration before acting on the indicator’s signals.
5. Risk Management:
• As with any technical indicator, MERCURYPRO is not infallible. Always use appropriate risk management techniques such as stop-loss orders to protect your capital. Never risk more than you can afford to lose on a trade.
6. Backtest First:
• Before implementing MERCURYPRO in live trading, make sure to backtest it on historical data. Test the strategy with various market conditions to assess its effectiveness and identify any potential weaknesses.
By considering these guidelines and warnings, you can use the MERCURYPRO indicator more effectively and mitigate potential risks in your trading strategy.
Numerical Volume with Bullish/Bearish Color CodingDescription: This indicator visually represents trading volume with color-coded lines to distinguish between bullish and bearish market conditions. The volume line is colored green for bullish periods (when the closing price is higher than the opening price), red for bearish periods (when the closing price is lower than the opening price), and gray for neutral periods (when the open and close prices are equal). The volume can be displayed with labels at specified intervals, offering a quick reference to the exact volume for each period. This tool helps to analyze volume trends in relation to price action, providing an easy-to-read overview of market sentiment.
Enhanced Buy/Sell Pressure, Volume, and Trend Bar analysisEnhanced Buy/Sell Pressure, Volume, and Trend Bar Analysis Indicator
Overview
This indicator is designed to help traders identify buy and sell pressure, volume changes, and overall trend direction in the market. It combines multiple concepts like price action, volume, and trend analysis, candlestick anaysis to provide a comprehensive view of market dynamics. The visual elements are intuitive, making it suitable for traders at different levels. This indicator works together with Enhanced Pressure MTF Screener which is a screener based of this indicator to make it easier to see Bullish/Bearish pressures and trend across multiple timeframes.
Image below: is the Enhanced Buy/Sell Pressure, Volume, and Trend Bar Analysis with the Enhanced Pressure MTF Screener indicator both active together.
Key Features
1.Buy/Sell Pressure Identification
Buy Pressure: Calculated based on price movement where the close price is higher than the opening price.
Sell Pressure: Calculated when the closing price is equal to or lower than the opening price.These pressures help you understand whether buyers or sellers are more dominant for each bar.
2.Volume Analysis
Normalized Volume: Volume data is normalized, making it easier to compare volume levels over different periods.
Volume Histogram: The volume is also presented as a histogram for easy visualization, showing whether the current volume is higher or lower compared to the average.
3.Simplified Coloring Option
You can choose to simplify the coloring of bars to reflect the dominant pressure: green for bullish pressure and red for bearish pressure. This makes it visually easier to identify who is in control. When simplified coloring is disabled, the bars' colors will represent the combined effect of buy and sell pressure.
4.Heikin-Ashi Candles for Pressure Calculation
The indicator includes an option to use Heikin-Ashi candles instead of traditional candles to calculate buy and sell pressure. Heikin-Ashi candles are known for smoothing out price action and providing a clearer trend representation.
5.Trend Background Coloring
This feature uses exponential moving averages (EMAs) to determine the trend:
Short-Term EMA vs. Long-Term EMA: When the short-term EMA is above the long-term EMA, the trend is considered bullish, and vice versa.
The background color changes based on the identified trend: green for an uptrend and red for a downtrend. This feature helps visualize the overall market direction at a glance.
6.Signals for Key Price Actions
The indicator plots various symbols to signal important price movements:
Bullish Close (▲): Indicates a strong upward movement where the close price crosses above the open.
Bearish Close (▼): Indicates a downward movement where the close price falls below the open.
Higher High (•): Highlights new highs compared to previous bars, useful for confirming an uptrend.
Lower Low (•): Highlights lower lows compared to previous bars, which can indicate a downtrend or bearish pressure.
Calculations Explained
1.Buy and Sell Pressure Calculation
The buy pressure is determined by the price range (high - low) if the closing price is above the opening price, indicating an increase in value.
The sell pressure is similarly calculated when the closing price is equal to or below the opening price.
The indicator uses the Average True Range (ATR) for normalization. Normalizing helps you compare pressure across different periods, regardless of market volatility.
2.Volume Normalization
Volume Normalization: To make volume comparable across different periods, the indicator normalizes it using the Simple Moving Average (SMA) of volume over a user-defined length.
Volume Histogram: The histogram provides a clear representation of volume changes compared to the average, making it easier to spot unusual activity that may indicate market shifts.
3.Combined Pressure Calculation
The indicator calculates a combined pressure value by subtracting sell pressure from buy pressure.
When combined pressure is positive, buying is dominant, and when negative, selling is dominant. This helps in visually understanding the ongoing momentum.
4.Trend Calculation
The indicator uses two EMAs to determine the trend:
Short-Term EMA (default 14-period) to capture recent price movements.
Long-Term EMA (default 50-period) to provide a broader trend perspective.
By comparing these EMAs on a higher timeframe, the indicator can identify whether the trend is up or down, making it easier for traders to align their trades with the larger market movement.
Inputs and Customization
The indicator provides several options for customization, allowing you to adjust it to your preferences:
SMA Length: Determines the lookback period for moving averages and volume normalization. A longer length provides more smoothing, whereas a shorter length makes the indicator more responsive.
Buy/Sell/Volume Colors: Customize the colors used to represent buying, selling, and volume to suit your preferences.
Heikin Ashi Option: Toggle between using Heikin Ashi or traditional OHLC (Open-High-Low-Close) candles for pressure calculations.
Trend Timeframe and EMA Periods: You can choose different timeframes and EMA periods for trend analysis to suit your trading strategy.
How to Use This Indicator
Identifying Market Momentum: Use the buy/sell pressure columns to see which side (buyers or sellers) is in control. Positive pressure combined with green color indicates strong buying, while red indicates selling.
Volume Confirmation: Check the volume area plot and histogram. High volume coupled with strong pressure is a sign of conviction, meaning the current move has backing from market participants.
Trend Identification: The trend background color helps identify the overall trend direction. Trade in the direction of the trend (e.g., take long positions during a green background).
Signal Indicators: The plotted symbols like "Bullish Close" and "Bearish Close" provide visual signals of key price actions, useful for timing entry or exit points.
Practical use Example
Scenario: The market is consolidating, and you see alternating green and red bars.
Action: Wait for a consistent sequence of green bars (buy pressure) along with a green background (uptrend) to consider going long, although you can go long without having a green background, the background adds confirmation layer.
Scenario: The market has several bearish closes (red ▼ symbols) accompanied by increasing volume.
Action: This could indicate strong selling pressure. If the background also turns red, it might be a good time to exit long positions or consider shorting.
Higher timeframe pressure and volume: Another way to use the indicator is to check buy/sell volume and pressure of the higher timeframe say weekly or daily or any timeframe you consider higher, once you’ve identified or feel confident in which direction the bar is going along with the full picture of trend, you can go to the lower timeframe and wait for it to sync with the higher timeframe to consider a long or a short. It is also easier to see when markets sync up by also applying the Enhanced Pressure MTF Screener which works in companion to this indicator.
Visual Cues and Interpretation
Combined Pressure Plot: The green and red column plot at the bottom of the chart represents the dominance between buying and selling. Tall green bars signify strong buying, while tall red bars indicate selling dominance.
Trend Background: Helps visualize the overall direction without manually drawing trend lines. When the background turns green, it generally indicates that the shorter-term moving average has crossed above the longer-term average—a sign of a bullish trend.
To Summarize shortly
The Enhanced Buy/Sell Pressure, Volume, and Trend Bar Analysis Indicator is an advanced but simple tool designed to help traders visually understand market dynamics. It combines different aspects of market analysis of candle pressure from buyers and sellers, volume confirmation, and trend identification into a single view, which can assist both new and experienced traders in making informed trading decisions.
This indicator:
Saves time by simplifying market analysis.
Provides clear visual cues for buy/sell pressure, volume, and trend.
Offers customizable settings to suit individual trading styles.
Always, I am happy to share my creations with you all for free. If you guys have cool ideas you would like to share, or suggestions for improvements the comment is below and I hope this overview gave an idea of how to use the indicator :D
Custom Volume for scalping### **Indicator Summary: Custom Volume with Arrow Highlight**
#### **Purpose:**
This indicator visualizes volume bars in a chart, highlighting specific conditions based on volume trends. It displays arrows above the volume bars to indicate potential bullish or bearish market conditions.
#### **Key Features:**
1. **Volume Bars**:
- The indicator plots volume as columns on the chart.
- Volume bars are colored:
- **White** for bullish volume (when the closing price is higher than the opening price).
- **Blue** for bearish volume (when the closing price is lower than the opening price).
2. **Highlight Conditions**:
- The indicator identifies a sequence of three consecutive volume bars:
- The first two bars must be of the same direction (either both bullish or both bearish).
- The third bar must be of the opposite direction.
- Additionally, the third bar's volume must be greater than the previous bar's volume.
3. **Arrow Indicators**:
- When the highlight conditions are met:
- An **upward arrow** ("▲") is placed above the third volume bar for bullish conditions (when the third bar is bullish).
- A **downward arrow** ("▼") is placed above the third volume bar for bearish conditions (when the third bar is bearish).
- The arrows are colored to match the respective volume bar: white for bullish and blue for bearish.
4. **Adjustable Size**:
- The arrows are sized appropriately to ensure visibility without cluttering the chart.
#### **Use Cases:**
- This indicator can help traders identify potential reversals or continuation patterns based on volume behavior.
- It is particularly useful for traders focusing on volume analysis to confirm market trends and make informed trading decisions.
#### **Customization:**
- Users can modify the conditions and visual attributes according to their preferences, such as changing colors, sizes, and label positions.
### **Conclusion:**
The "Custom Volume with Arrow Highlight" indicator provides a straightforward and effective way to visualize volume trends and identify key market conditions, aiding traders in their decision-making processes. It combines the power of volume analysis with clear visual cues, making it a valuable tool for technical analysis in trading.
If you need any further modifications or details, let me know!
Volume Based Price Prediction [EdgeTerminal]This indicator combines price action, volume analysis, and trend prediction to forecast potential future price movements. The indicator creates a dynamic prediction zone with confidence bands, helping you visualize possible price trajectories based on current market conditions.
Key Features
Dynamic price prediction based on volume-weighted trend analysis
Confidence bands showing potential price ranges
Volume-based candle coloring for enhanced market insight
VWAP and Moving Average overlay
Customizable prediction parameters
Real-time updates with each new bar
Technical Components:
Volume-Price Correlation: The indicator analyzes the relationship between price movements and volume, Identifies stronger trends through volume confirmation and uses Volume-Weighted Average Price (VWAP) for price equilibrium
Trend Strength Analysis: Calculates trend direction using exponential moving averages, weights trend strength by relative volume and incorporates momentum for improved accuracy
Prediction Algorithm: combines current price, trend, and volume metrics, projects future price levels using weighted factors and generates confidence bands based on price volatility
Customizable Parameters:
Moving Average Length: Controls the smoothing period for calculations
Volume Weight Factor: Adjusts how much volume influences predictions
Prediction Periods: Number of bars to project into the future
Confidence Band Width: Controls the width of prediction bands
How to use it:
Look for strong volume confirmation with green candles, watch for prediction line slope changes, use confidence bands to gauge potential volatility and compare predictions with key support/resistance levels
Some useful tips:
Start with default settings and adjust gradually
Use wider confidence bands in volatile markets
Consider prediction lines as zones rather than exact levels
Best applications of this indicator:
Trend continuation probability assessment
Potential reversal point identification
Risk management through confidence bands
Volume-based trend confirmation
FuTech V-Spike & V-HighlighterFuTech V-Spike & V-Highlighter
In the context of trading and technical analysis, this volume spike & volume highlighter indicator is the perfect indicator used to assess market activity and make informed trading decisions.
Let's Understand in brief as below :
1) Volume Spike :
A volume spike refers to a sudden, significant increase in trading volume compared to the average volume over a specific period.
This spike can indicate heightened interest in a particular security, often preceding price movements.
Traders may look for volume spikes as signals for potential buy or sell opportunities because they can suggest that a stock is experiencing increased activity, possibly due to news, earnings releases, or other catalysts.
Characteristics of a Volume Spike:
Assess the sudden increase in trading volume.
It Can occur in both upward and downward price movements.
Often compared to the average volume over a defined period (e.g., the last 20 days).
2) Volume Highlighter:
A volume highlighter emphasizes significant changes in trading volume on a price chart. This indicator typically uses color coding to highlight periods of high volume, making it easier for traders to identify volume spikes at a glance.
How this indicator works:
a) Volume Spike will calculate the highest volume spike as per the user defined threshold multiplier. (Multiplier = when volume exceeds a certain threshold)
b) The threshold Multiplier can be set based on a fixed number or as a multiple of the Exponential Moving Average volume. Volume Spike Multiplier default is 1.5, means the EMA volume should cross 1.5 times the user defined lookback period
c) The result is derived from the user defined lookback candles by using its EMA instead of SMA, which will give us more precise results.
d) By default, last 10 candles EMA average is used to calculate the Volume Spike but you can choose your lookback period as many days, weeks, months, years of your choice !
e) In Volume Spike -
- Green candle will show Yellow color Bar as Bullish sentiments, whereas
- Red candle will show Black Bar as Bearish sentiments.
f) Volume Highlighter will highlight the candles background if the highest volume is crossing as per the the user defined lookback period
g) Default Lookback period is 20, Color coding (e.g., Blue for bullish spikes, Red for bearish spikes) helps traders quickly assess the volume context.
h) Volume Highlighter plotting shapes and positions can be modified
Illustration:
From the Above pic,
If last Volume Spike is 10 lookback candles, Spike multiplier is 1.5 and Highlighter lookback candles is 20,
Then yellow candle means the spike in volume which is 1.5 times higher than the last 10 candles
Highlighting color defines the highest volumes trading from the last 20 candles which is either Blue (Bullish) or Red (Bearish) sentiments
Conclusion :
Using FuTech V-Spike & V-Highlighter indicator - will help traders identify potential trading opportunities and better understand market dynamics.
By analyzing volume in conjunction with price movements, traders can make more informed decisions based on market sentiment.
Thank you !
Jai Swaminarayan Dasna Das !
He Hari ! Bas Ek Tu Raji Tha !
VR1 DEMA - Liquidity IdentifierThis custom Pine Script indicator, titled "VR1 DEMA - Liquidity Identifier", is designed to help traders identify periods of significant resistance to price movement, often indicating high liquidity areas where the market may encounter difficulty moving in one direction. The indicator analyzes the relationship between volume and price range, combined with bar volume conditions, to provide enhanced signals of potential liquidity buildup.
Key Features:
Customizable EMA Lengths:
Users can define the lengths of both the fast and slow Exponential Moving Averages (EMAs), with default values of 5 for the fast EMA and 13 for the slow EMA. These EMAs are calculated from the ratio of volume to price range, smoothing the data to detect trends in liquidity.
Dynamic Fast EMA Color:
The fast EMA changes color based on its relationship to the slow EMA:
Red when the fast EMA is above the slow EMA, signaling stronger resistance or greater liquidity.
White when the fast EMA is below the slow EMA, indicating potentially weaker resistance.
Liquidity Signal with Multiplier Condition:
The background of the chart changes to white when the volume-to-price ratio exceeds 1.5 times the fast EMA. This highlights potential areas of liquidity buildup where price movement may encounter stronger resistance. The 1.5 multiplier is adjustable, allowing for sensitivity customization.
Volume Condition for Enhanced Signals:
A new condition is added that requires the actual bar volume to exceed 1.2 times the 5-period EMA of average bar volume. This ensures that the background color only changes when there is not only increased liquidity but also significantly higher trading volume. The 1.2 multiplier is user-adjustable for further refinement.
Combined Liquidity and Volume Filtering:
Both conditions (volume-to-price ratio and actual volume) must be met for the background color to change. This double-filtering helps traders spot moments of unusual market activity more accurately.
Optional Volume/Price Range Visualization:
An optional plot of the volume-to-price ratio is included, providing a visual representation of how volume interacts with price movement in real-time. This can be enabled or disabled based on user preference.
User-Friendly Customization:
The script includes inputs for adjusting the fast and slow EMA lengths, as well as the multipliers for the volume-to-price ratio and actual volume conditions. These customizable parameters allow traders to tailor the indicator to their specific market strategies.
Use Case:
This indicator is particularly useful for identifying periods of high liquidity and resistance in the market, where price movement may stall or reverse. By combining volume-to-price ratio analysis with actual volume conditions, the indicator provides more reliable signals for detecting potential breakouts, reversals, or consolidation periods. The color-coded fast EMA and background shading make it easy to spot key moments of increased market activity and liquidity.
Cumulative Net VolumeCumulative Calculation: Summarizes the net volume (buying minus selling volume) cumulatively, providing a running total that reflects the aggregate trading pressure.
Custom Timeframe Flexibility: Users can choose to analyze the volume on a custom timeframe, enhancing adaptability for various trading strategies.
Color-Coded Visualization: Features an intuitive color scheme where green indicates a net buying dominance and red signals net selling dominance, making it easier to interpret shifts in market dynamics.
Versatility: Suitable for all types of assets available on TradingView including cryptocurrencies like Bitcoin, stocks, forex, and more.
Utility: This tool is particularly useful for identifying trends in buying or selling pressure, which could be pivotal during significant market events or when assessing the potential for a trend reversal. By understanding the accumulation and distribution phases through the cumulative net volume, traders can make more informed decisions.
Perfect for both novice traders looking to get a grip on volume analysis and seasoned professionals seeking an edge in their trading tactics.
VSA Wyckoff Volume with Bubbles Introducing the "VSA Wyckoff Volume" indicator—a powerful tool for traders who want to visualize and analyze market volume with precision. This indicator leverages Volume Spread Analysis (VSA) and Wyckoff principles to categorize volume into six distinct levels: Ultra High, Very High, High, Normal, Low, and Very Low. Each level is represented by a color-coded bubble on the chart, with bubble sizes adjusted according to the volume intensity. Additionally, the indicator incorporates an ATR-based positioning system, ensuring that each bubble is placed accurately on the chart for easy interpretation. Whether you're an experienced trader or new to the market, this indicator provides clear insights into market activity, helping you make more informed trading decisions.
Volume Spread Analysis (VSA) is a trading methodology that analyzes the relationship between volume, price, and the spread (range) of a price bar. It was developed by Tom Williams, who combined his experience as a trader with principles derived from Richard D. Wyckoff's work on market manipulation.
Key Concepts of VSA:
Volume: The amount of a particular asset traded during a specific time period. In VSA, volume is a key indicator of market activity and is used to understand the strength or weakness behind price movements.
Spread: The range between the high and low of a price bar. The spread, when analyzed in conjunction with volume, can indicate whether the market is being driven by strong or weak hands.
Price: The actual value at which an asset is traded. VSA looks at price in relation to volume and spread to identify the intentions of smart money (large institutional traders).
How VSA Works:
VSA aims to uncover the footprints of smart money by analyzing the volume and price spread. The core idea is that significant price movements accompanied by high volume indicate the involvement of professional traders, while price movements on low volume might suggest that the move lacks conviction or is driven by retail traders.
VSA in Practice:
High Volume, Narrow Spread: This could indicate supply coming into the market as professional traders sell into the buying pressure, leading to potential price weakness.
High Volume, Wide Spread, Price Up: This often suggests strong buying interest, with smart money pushing prices higher.
Low Volume, Wide Spread: A sign of a potential weak market, where price is moving without strong participation, indicating that the move may not be sustainable.
Applications:
VSA is particularly useful for identifying potential turning points in the market, understanding market sentiment, and anticipating future price movements based on the actions of smart money. Traders who use VSA often combine it with other technical analysis tools to build a comprehensive trading strategy.
Your "VSA Wyckoff Volume" indicator, by categorizing volume into distinct levels and visualizing it on the chart, provides an enhanced way to apply VSA principles and understand the underlying market dynamics.
BX-Volume Trend and OscillatorBX-Volume Trend and Oscillator (VTO)
This is my second indicator. I created this indicator for myself. I was inspired by the indicators created by Bjorgum, Duyck and QuantTherapy and decided to create multiple indicators that either work well combined with their indicators or something new that applies some of their indicator concepts. I decided to share this because I believe in learning and earing together as a community. I will later share the rest of the indicators I have created. If you guys have any questions or suggestions write them.
The BX-Volume Trend and Oscillator (VTO) is a comprehensive trading indicator designed to help traders identify trends, momentum shifts, and potential reversals by analyzing volume and price action through various metrics. This indicator combines relative volume analysis with custom Xtrender oscillators and moving averages to provide valuable insights into market behavior.
Image: BX-Volume Trend and Oscillator (VTO)
Features:
Relative Volume Analysis: Measures the current volume relative to the average volume over a specified period, helping traders understand if the current trading activity is unusually high or low.
Short-Term Xtrender Oscillator: This oscillator analyzes the difference between two short-term Exponential Moving Averages (EMAs) and smooths it with a custom RSI, highlighting short-term trends and potential reversal points.
Long-Term Xtrender Oscillator: Similar to the short-term oscillator but uses longer-term EMAs and RSI for identifying more sustained trends and shifts.
T3 Moving Average: A smoothed version of the Xtrender oscillator that helps in detecting trend changes more clearly.
Volume Trend Plot: Shows the smoothed relative volume to understand how trading activity aligns with the trend.
Visual Indicators: Uses colors and shapes to highlight significant changes and trends, such as circles to mark potential reversal points.
How to Use the Indicator
Analyze Relative Volume:
Relative Volume Plot: The smoothed relative volume is displayed in white, helping you assess if current trading volumes are above or below the historical average.
High Relative Volume: Indicates strong trading interest, which could support or contradict the prevailing trend.
Image above: is set to daily timeframe
Monitor Short-Term Xtrender Oscillator
Short-Term Xtrender: Plotted as a column histogram with colors changing from green to red based on the oscillator's movement and momentum. Green and lime colors indicate bullish trends, while maroon and red suggest bearish conditions.
Smoothed Short-Term Xtrender (T3): Plotted as a line that adjusts color based on the short-term Xtrender's trend. The line changes color to match the histogram's color, providing a clearer view of momentum shifts.
Reversal Markers: Small circles indicate potential short-term trend reversals, where changes in the T3 moving average suggest shifts in momentum.
Assess Long-Term Xtrender Oscillator:
Long-Term Xtrender: Plotted as a histogram, with color changes similar to the short-term Xtrender. It shows longer-term trends and shifts.
Color Indicators: Lime and green colors suggest an uptrend, while red and maroon indicate a downtrend.
Look for Zero Line Crossings:
The zero line serves as a reference point. Crossings above the zero line may indicate bullish trends, while crossings below may signal bearish trends.
Image above: is set to daily timeframe, and it showcases the Short-Term Xtrender (T3) applied.
Image above: is set to 8hr timeframe: Using the lower timeframe you can spot better details of pullbacks and potential reversals.
Example of Use:
Identify Trend and Momentum: Use the combination of the short-term and long-term Xtrender oscillators to gauge the prevailing market trend. For instance, if both oscillators are above zero and showing upward momentum, it suggests a strong bullish trend.
Spot Reversals: Observe the short-term Xtrender and its smoothed T3 version. If the T3 line changes direction and crosses through previous peaks and troughs, it could signal a potential reversal.
Volume Confirmation: Check the relative volume and its smoothed version to confirm the strength of price movements. Significant changes in volume can validate the trends indicated by the Xtrender oscillators.
By combining these elements, the BX-Volume Trend and Oscillator (VTO) provides a holistic view of market dynamics, helping traders make more informed decisions based on trend strength, potential reversals, and volume activity.
Lastly, my Scripts/Indicators/Ideas /Systems that I share are only for educational purposes!
Rsi Long-Term Strategy [15min]Hello, I would like to present to you The "RSI Long-Term Strategy" for 15min tf
The "RSI Long-Term Strategy " is designed for traders who prefer a combination of momentum and trend-following techniques. The strategy focuses on entering long positions during significant market corrections within an overall uptrend, confirmed by both RSI and volume. The use of long-term SMAs ensures that trades are made in line with the broader market trend. The stop-loss feature provides risk management by limiting losses on trades that do not perform as expected. This strategy is particularly well-suited for longer-term traders who monitor 15-minute charts but look for substantial trend reversals or continuations.
Indicators and Parameters:
Relative Strength Index (RSI):
- The RSI is calculated using a 10-period length. It measures the magnitude of recent price changes to evaluate overbought or oversold conditions. The script defines oversold conditions when the RSI is at or below 30 and overbought conditions when the RSI is at or above 70.
Volume Condition:
-The strategy incorporates a volume condition where the current volume must be greater than 2.5 times the 20-period moving average of volume. This is used to confirm the strength of the price movement.
Simple Moving Averages (SMA):
- The strategy uses two SMAs: SMA1 with a length of 250 periods and SMA2 with a length of 500 periods. These SMAs help identify long-term trends and generate signals based on their crossover.
Strategy Logic:
Entry Logic:
A long position is initiated when all the following conditions are met:
The RSI indicates an oversold condition (RSI ≤ 30).
SMA1 is above SMA2, indicating an uptrend.
The volume condition is satisfied, confirming the strength of the signal.
Exit Logic:
The strategy closes the long position when SMA1 crosses under SMA2, signaling a potential end of the uptrend (a "Death Cross").
Stop-Loss:
A stop-loss is set at 5% below the entry price to manage risk and limit potential losses.
Buy and sell signals are highlighted with circles below or above bars:
Green Circle : Buy signal when RSI is oversold, SMA1 > SMA2, and the volume condition is met.
Red Circle : Sell signal when RSI is overbought, SMA1 < SMA2, and the volume condition is met.
Black Cross: "Death Cross" when SMA1 crosses under SMA2, indicating a potential bearish signal.
to determine the level of stop loss and target point I used a piece of code by RafaelZioni, here is the script from which a piece of code was taken
I hope the strategy will be helpful, as always, best regards and safe trades
;)
Price and Volume Breakout Buy Strategy [TradeDots]The "Price and Volume Breakout Buy Strategy" is a trading strategy designed to identify buying opportunities by detecting concurrent price and volume breakouts over a specified range of candlesticks.
This strategy is optimized for assets demonstrating high volatility and significant momentum spikes.
HOW IT WORKS
The strategy first takes the specific number of candlesticks as the examination window for both price and volume.
These values are used as benchmarks to identify breakout conditions.
A trade is initiated when both the closing price and the trading volume surpass the maximum values observed within the predetermined window.
Price must be above a designated moving average, serving as the trend indicator, ensuring that all trades align with the prevailing market trend.
APPLICATION
This strategy is particularly effective for highly volatile assets such as Bitcoin and Ethereum, capitalizing on the cues from sudden price and volume breakouts indicative of significant market movement, often driven by market smart money traders.
However, for broader markets like the S&P 500, this strategy may be less effective due to less pronounced volume and price shifts compared to the cryptocurrency markets.
DEFAULT SETUP
Commission: 0.01%
Initial Capital: $10,000
Equity per Trade: 70%
Backtest result sometimes gives fewer than 100 trades under certain higher timeframes, as most trades tend to have a long holding period. Entry conditions are also more stringent, which, combined with the relatively brief history of cryptocurrencies, results in fewer trades on longer timeframes.
Users are advised to adjust and personalize this trading strategy to better match their individual trading preferences and style.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
[Wiseplat Sideways] v.04The Sideway indicator for TradingView is a powerful tool designed to identify periods of sideways or ranging price action in the market. With its intuitive interface and customizable parameters, traders can easily spot when an asset is consolidating, providing valuable insights for both trend-following and range-bound strategies.
This indicator utilizes really simple algorithm to analyze price movement and volatility, effectively filtering out noise and false signals. By plotting clear visual cues on the chart.
Traders can adjust the sensitivity parameters to tailor the indicator to their specific trading style and preferences. Whether used in isolation or in conjunction with other technical analysis tools, the Sideway indicator empowers traders to make informed decisions in dynamic market conditions.
Its user-friendly design and simple settings of parameters makes it accessible to traders of all levels, from beginners seeking clarity in choppy markets to seasoned professionals looking for confirmation of their analysis. With the Sideway indicator, traders can confidently navigate sideways price action and stay ahead of the curve in their trading endeavors.
Developer: Oleg Shpagin
High Volume Price Bar ChannelThe "High Volume Price Bar Channel" indicator for TradingView is a tool designed to highlight price bars that experience unusually high trading volume compared to the average volume over a specified lookback period. When the volume of a price bar exceeds a certain multiple of the average volume, a channel is drawn extending from the high to the low of that bar, indicating a potential surge in trading activity.
Key Features:
Customizable Parameters: Users can adjust the color of the channel, the lookback period for calculating the average volume, and the factor by which the current volume should exceed the average volume to trigger the drawing of the channel.
Volume-based Highlighting: The indicator identifies price bars with high volume relative to the average and visually highlights them by drawing a channel.
Flexibility: Traders can tailor the indicator settings to suit their trading strategies and preferences, allowing for adaptability across various market conditions.
Usage:
High volume often indicates increased market activity and potential price volatility. Traders may use this indicator to identify periods of heightened interest or potential trend reversals.
When the channel is drawn, traders may look for confirmation from other technical indicators or price action to make informed trading decisions, such as entering or exiting positions, adjusting stop-loss levels, or assessing the strength of a trend.
The indicator can be applied to various timeframes and financial instruments, providing insights into volume dynamics across different market environments.
Overall, the "Customizable Volume Channel" indicator offers traders a versatile tool to spot significant volume spikes and potential trading opportunities within the context of price movements, aiding in more informed decision-making and risk management strategies.
Forex Multi-Factor IndicatorMoving Averages (MA):
Two moving averages are plotted on the chart: a fast MA (blue line) and a slow MA (red line).
The fast MA is calculated using a shorter period (10 periods by default), while the slow MA is calculated using a longer period (30 periods by default).
Moving averages help identify trends by smoothing out price fluctuations. When the fast MA crosses above the slow MA, it suggests a bullish trend, and when the fast MA crosses below the slow MA, it suggests a bearish trend.
Relative Strength Index (RSI):
The RSI indicator (orange line) is plotted on a separate axis.
RSI measures the speed and change of price movements and oscillates between 0 and 100.
RSI values above 70 are considered overbought, indicating a potential reversal to the downside, while RSI values below 30 are considered oversold, indicating a potential reversal to the upside.
Volume Moving Average (Volume MA):
The volume moving average (purple line) is plotted on the same axis as the volume.
The volume moving average is calculated over a specified period (20 periods by default).
Volume analysis provides insights into the strength of price movements. When the volume increases along with price movements, it suggests strong conviction from traders.
Buy and Sell Signals:
Buy signals (green triangle) are generated when all of the following conditions are met:
The fast MA crosses above the slow MA (indicating a bullish trend).
The RSI is below the oversold level (indicating potential upward momentum).
The current price is above the fast MA, and the volume is higher than the volume MA (indicating positive volume trend).
Sell signals (red triangle) are generated when all of the following conditions are met:
The fast MA crosses below the slow MA (indicating a bearish trend).
The RSI is above the overbought level (indicating potential downward momentum).
The current price is below the fast MA, and the volume is lower than the volume MA (indicating negative volume trend).
Overall, this multi-factor indicator combines moving averages, RSI, and volume analysis to identify potential buying and selling opportunities in the Forex market. Traders can use the signals generated by this indicator as part of their trading strategy, but it's important to consider other factors such as risk management and market conditions before making trading decisions
VSA Volume Spread AnalysisVolume Spread Analysis with Trend Direction is an indicator designed to Identify trend based volume spread.
Volume
Spread
Trend
This is a very simple yet powerful to identify Trend and corresponding volume Breakout. Unlike other Volume Indicators this indicator detects Breakout along with trend direction. One can detect the Early breakout in volume using this indicator. The Buy or Sell Signal is based on zero crossing of the Histogram.
Trend direction is confirmed using the MA of the Histogram which is similar to the Volume MA on volume indicator. One can enter a trade using the indicator when Trend direction and histogram are in same direction. Entry is done when ever histogram crosses the Trend MA line.
Fake entries can be eliminated by changing the indicator to higher Timeframe.
Spread is determined using the difference in open and close of the candle
Volume change is determined using the ratio of change of volume to previous volume
EMA 10 is used to determine the Spread and multiplied by volume change so the
PRICE(ema10), Volume, Spread(close-open) are merged to one indicator.
Direction changes when ever difference of VSA is positive or negative.
True VolumeThis indicator is designed to provide in-depth analysis of volume data from multiple sources and distinguish highly liquid candles by measuring the density of the volume. By focusing on the density and concentration of volume, rather than just the volume itself, it offers a more nuanced view of the market. This can be particularly beneficial in markets like cryptocurrencies, where understanding the role of market makers versus retail traders is crucial for strategic trading.
This is how it works:
Multiple Asset Integration:
Unlike standard volume indicators, True Volume allows the inclusion of up to four different assets (or the same asset from various exchanges) into its volume calculations. This feature provides a broader and more accurate total volume representation, essential in markets like cryptocurrencies where volume is dispersed across multiple exchanges.
Adjustable Time Anchors:
It offers various time anchor options, allowing traders to analyze volume data over different time periods or a specific amount of lookback candles. This flexibility helps in understanding volume trends over both short and long-term time frames.
Volume Density Analysis:
The core of this indicator is the innovative concept of Volume Density. It's calculated using a sigmoid function that normalizes the volume-to-price movement ratio in a unique way without needing a max cap or having the density column spike off the chart. This method helps in distinguishing between normal volume fluctuations and those that are unusually dense for the given price movement. This distinction is key in identifying potential market maker activities.
The Visuals:
The Volume Density is displayed in a unique way without compromising the original volume bars or cap the density. Infinite density can essentially be represented without having an infinitely large bar or caping out the density data. There's also two different color themes, optional bar color, and an option to flip the density bars up-side down for a different representation. Each of the original volume sources can be displayed separately as well. All colors as customizable as well for your own preference.
Price Volume Trend (PVT):
Included in this indicator is also the Price Volume Trend, which cumulatively measures the density delta, offering insights into the longer-term momentum of the market.
How do I trade it?
This indicator aims to give you insight into 'the other side of the trade', the Market Makers. When you buy, they provide liquidity by selling to you. That drives the Volume Density up.
Consider whether the market maker is currently long or short and might need to cover their position by wicking price back, or "adjust inventory". Especially towards the end of a market session.
Consider dense candles during market gaps or weekends to be market manipulation moves.
The density also goes up when stop losses are hit. If price makes a higher high or lower low, high density could indicate a liquidation event.
