Effective Volume (ADV) v3Effective Volume (ADV) v3: Enhanced Accumulation/Distribution Analysis Tool
This indicator is an updated version of the original script by cI8DH, now upgraded to Pine Script v5 with added functionality, including the Volume Multiple feature. The tool is designed for analyzing Accumulation/Distribution (A/D) volume, referred to here as "Effective Volume," which represents the volume impact in alignment with price direction, providing insights into bullish or bearish trends through volume.
Accumulation/Distribution Volume Analysis : The script calculates and visualizes Effective Volume (ADV), helping traders assess volume strength in relation to price action. By factoring in bullish or bearish alignment, Effective Volume highlights points where volume strongly supports price movements.
Volume Multiple Feature for Volume Multiplication : The Volume Multiple setting (default value 2) allows you to set a multiplier to identify bars where Effective Volume exceeds the previous bar’s volume by a specified factor. This feature aids in pinpointing significant shifts in volume intensity, often associated with potential trend changes.
Customizable Aggregation Types : Users can choose from three volume aggregation types:
Simple - Standard SMA (Simple Moving Average) for averaging Effective Volume
Smoothed - RMA (Recursive Moving Average) for a less volatile, smoother line
Cumulative - Accumulated Effective Volume for ongoing trend analysis
Volume Divisor : The “Divide Vol by” setting (default 1 million) scales down the Effective Volume value for easier readability. This allows Effective Volume data to be aligned with the scale of the price chart.
Visualization Elements
Effective Volume Columns : The Effective Volume bar plot changes color based on volume direction:
Green Bars : Bullish Effective Volume (volume aligns with price movement upwards)
Red Bars : Bearish Effective Volume (volume aligns with price movement downwards)
Moving Average Lines :
Volume Moving Average - A gray line representing the moving average of total volume.
A/D Moving Average - A blue line showing the moving average of Accumulation/Distribution (A/D) Effective Volume.
High ADV Indicator : A “^” symbol appears on bars where the Effective Volume meets or exceeds the Volume Multiple threshold, highlighting bars with significant volume increase.
How to Use
Analyze Accumulation/Distribution Trends : Use Effective Volume to observe if bullish or bearish volume aligns with price direction, offering insights into the strength and sustainability of trends.
Identify Volume Multipliers with Volume Multiple : Adjust Volume Multiple to track when Effective Volume has notably increased, signaling potential shifts or strengthening trends.
Adjust Volume Display : Use the volume divisor setting to scale Effective Volume for clarity, especially when viewing alongside price data on higher timeframes.
With customizable parameters, this script provides a flexible, enhanced perspective on Effective Volume for traders analyzing volume-based trends and reversals.
Effectiveness
Volume Effectiveness [BigBitsIO]This Volume Effectiveness indicator is designed to allow users to try and identify how effective volume is on each candle, and smoothing those values over time to try to find trends.
Volume Effectiveness is the % change in price for each single unit of volume on the associated candle. The value can be positive or negative, but there is an option to just monitor an absolute value.
Features:
- Volume Effectiveness
- Toggle if Volume Effectiveness should be an absolute value
- Toggle visibility of bars
- Smoothed moving average of Volume Effectiveness
- Adjustable period on the smoothed moving average
- Several moving average types available to use for the smoothed moving average
- Toggle visibility of smoothed moving average
Volume Plus (Volume+)View Total Volume, Bull Volume, and/or Bear Volume. View Volume Effectiveness to reveal how Volume has effected the price. View the Moving Average of any of the above metrics, selecting one or more types of moving averages(SMA, EMA, RMA, SWMA, VWMA, WMA, or ALMA). Create nearly infinite crossovers by activating the Secondary Moving Average and choosing a longer or shorter Length. Use the highlighter to quickly filter out noise and focus the events you're searching for, by choosing one or more highlight-scenarios from the Highlighting Menu. Use the Average Amplifier to fine tune your Highlighting results.
Use as an ordinary Volume Indicator
Show the Bullish volume within Total Volume
Show the Bearish volume within Total Volume
Show the Bullish and Bearish volume simultaneously within Total Volume
Create crossovers like this one, Bullish Volume Average with Bearish Volume Average
Show the gas mileage of volume, the Volume Effectiveness
Create crossovers like this, Volume Effectiveness 14 with Volume Effectiveness 60
Use Amplifiers to show things that are usually out of scale with one another, like Volume Effectiveness with Volume
Use the Highlighter to show anything, like here, when Bearish Volume was above average AND Volume Effectiveness was under average
From left to right, the Indicator Values are as follows:
1) Total True Volume (red, green, or gray when viewed alongside Bulls/Bears)
2) Volume Winner - Bulls v/s Bears (red or green)
3) Volume Loser - Bulls v/s Bears (red or green)
4) Volume Effectiveness (blue)
5) Design Spacer - Ignore This (green)
6) Design Spacer - Ignore This (red)
7) Total True Volume Primary Moving Average (dark gray)
8) Total True Volume Secondary Moving Average (dark gray)
9) Inferred Bullish Volume Primary Moving Average (dark green)
10) Inferred Bullish Volume Secondary Moving Average (dark green)
11) Inferred Bearish Volume Primary Moving Average (dark red)
12) Inferred Bearish Volume Secondary Moving Average (dark red)
13) Volume Effectiveness Primary Moving Average (blue)
14) Volume Effectiveness Secondary Moving Average (blue)
Click the sprocket and you'll find the following settings (which are explained below):
Total True Volume - This is your everyday, ordinary volume indicator, a total sum of the volume from each candle.
Inferred Bullish Volume - This subtracts Bearish Volume out of the Total True Volume. But without the bull-volume data from the exchange, we can only forensically infer the bullish volume by evaluating OHLC data to guess what ratio of upward v/s downward movement happened within the candle.
Inferred Bearish Volume - This subtracts Bullish Volume out of the Total True Volume. But without the bear-volume data from the exchange, we can only forensically infer the bearish volume by evaluating OHLC data to guess what ratio of downward v/s upward movement happened within the candle.
Volume Effectiveness - This shows how much price movement occurred for each unit of Volume, by dividing the Price Change of each candle by the Total True Volume of each candle. If this volume were gas-mileage, then Volume would be the gas and Price would be the mileage.
• Inferred Effectiveness - Rather than using the Price Change divided by the Total True Volume, this method of determining Volume Effectiveness uses the Total Price-Mileage divided by the Total True Volume. The Total Price-Mileage is determined by figuring the high minus low, the wick times two, and the tail times two, and ad
