Volume Pressure Based Buy and Sell SignalsThis script uses a volume pressure indicator to generate buy and sell signals. The volume pressure indicator is calculated by taking the sum of the product of volume and price change over a specified period of time, and then dividing that sum by the total volume over the same period. This gives a measure of the amount of buying pressure or selling pressure in the market.
The script then compares the volume pressure indicator to a moving average of the volume pressure indicator. When the volume pressure indicator crosses above the moving average, a buy signal is generated. When the volume pressure indicator crosses below the moving average, a sell signal is generated.
This script is beneficial to traders because it can help them to identify potential trend reversals. When the volume pressure indicator crosses above the moving average, it indicates that there is a growing amount of buying pressure in the market. This could be a sign that the trend is about to reverse from a downtrend to an uptrend. Conversely, when the volume pressure indicator crosses below the moving average, it indicates that there is a growing amount of selling pressure in the market. This could be a sign that the trend is about to reverse from an uptrend to a downtrend.
Объем
RSI Xray + VolumeRSI Analysis:
The indicator calculates the Relative Strength Index (RSI) using a user-defined length (default: 14).
It colors the bars based on RSI levels to identify potential overbought and oversold conditions.
Bars exceeding the overbought level (default: 70) are colored, while bars below the oversold level (default: 30) are colored too.
This helps traders identify potential trend reversals or market exhaustion points.
Midpoint Analysis:
The indicator calculates the midpoint of each bar, which is the average of the high and low prices.
It colors the bars based on their relation to the midpoint.
Bars above the midpoint are colored, indicating potential bullish momentum.
Bars below the midpoint are colored, suggesting potential bearish momentum.
Volume Analysis:
The indicator offers the ability to analyze volume changes and identify high volume bars.
It colors the bars when the volume exceeds a user-defined threshold.
This feature helps traders identify potential areas of market interest and increased participation.
Moving Average (SMA):
The indicator plots a Simple Moving Average (SMA) line of the closing price over a user-defined period (default: 9).
This moving average line helps traders identify potential trends and spot areas of support or resistance.
RSI Extreme Conditions:
The indicator identifies extreme RSI conditions by comparing the current RSI value with the highest and lowest RSI values calculated from a user-defined number of previous bars (default: 10).
When the RSI exceeds the overbought level but is lower than the highest RSI value within the specified range, the bar color changes to a customizable color (default: blue).
Conversely, when the RSI falls below the oversold level but is higher than the lowest RSI value within the specified range, the bar color changes to the same customizable color.
This feature helps traders identify potential RSI-based trading opportunities and market turning points.
Customization:
The indicator offers customizable settings for colors, RSI levels, SMA length, volume thresholds, RSI extreme levels, and RSI label color.
Traders can modify these settings based on their preferences and trading strategies.
Overall, the 'RSI Xray + Volume' indicator provides a comprehensive view of RSI levels, market momentum, volume changes, and RSI extreme conditions. Traders can use this information to identify potential trade setups, validate market trends, and make more informed trading decisions. It can be applied to various timeframes and instruments, making it a valuable tool for both short-term and long-term traders.
ProfitAlgoOverview
ProfitAlgo is a powerful and intuitive trading tool specifically developed to cater to the requirements of both beginners and experienced traders. It is designed to function in every timeframe and on all cryptocurrencies, stocks, indices, forex, futures, currencies, ETF's, energy and commodities. This innovative tool provides real-time signals, comprehensive trend analysis, and advanced risk management features, making it an indispensable asset for traders of all levels. This cutting-edge tool generates 'BUY' and 'SELL' signals, complemented by an array of robust analytical tools. Empower your trading analysis with this all-in-one solution and add to your arsenal of indicators to make well-informed decisions.
This algorithm incorporates a sophisticated Fourier smoothing technique to effectively filter price data, reduce noise and reveal underlying patterns and trends. By utilizing multiple price series data and incorporating Price Volume Trend, it leverages volume analysis and price movement patterns. Furthermore, the algorithm employs relative and simple moving average calculations to enhance signal clarity and filter out outliers, resulting in a more refined and robust indicator.
Features
Buy/Sell signals: Visually illustrated by 'BUY' and 'SELL' labels, these signals provide indications to traders about optimal times to enter or exit positions in the market based on the particular asset they are trading. Traders may want to enter long positions when buy signals appear, and enter short positions when 'SELL' signals appear.
Stop Loss/Take Profit Levels: Stop loss and take profit levels are predefined price thresholds that allow traders to automatically exit trades to limit losses or secure profits, respectively. Stop loss and take profit levels are visually depicted through three dotted lines on the trading chart, including the entry price, take profit (TP), and stop loss (SL). Additionally, a table displays the corresponding price entries for all three levels, providing a comprehensive overview of the trade. Traders can effectively manage their risk and optimize their trading by implementing predefined threshold settings and establishing take profit levels, thus safeguarding their profits using a strategic approach.
Support and Resistance Levels: Support and resistance levels are key price levels in the market that act as barriers or turning points for the price movement of an asset. Traders utilize these levels to identify potential areas of buying and selling opportunities. These can be depicted as red (resistance) and green (support) horizontal lines. These levels can serve as valuable complements to stop/loss and take profit levels, providing confirmation for profit-taking opportunities and facilitating effective risk management. Moreover, they can synergistically work alongside the price lines to identify potential reversal zones by visualizing market highs/lows in conjunction with areas of supply & demand.
Moving Average Bands: Moving average bands, plotted alongside the price data, dynamically change color based on the prevailing trend, with red indicating a downtrend and green representing an uptrend. This visual tool provides valuable insights to users, allowing them to quickly identify and interpret market trends. Integrating Moving Average bands with our buy/sell signals offers added confidence in identifying market trends, enabling traders to seek validation and enhance their decision-making process.
Trend Table: The trend table provides real-time information on the current trend of an asset, displaying three distinct outputs: "Uptrend," "Downtrend," and "Ranging Trend." This valuable tool enables users to assess the live trend of an asset, which may differ from the buy/sell signals. The primary objective of this feature is to analyze real-time trends in both ranging and trending market conditions. While the current signal may indicate a 'BUY' signal, the table can present an alternative output, providing valuable insights for traders and investors.
Price Lines: Price lines are depicted as two parallel grey lines running alongside the price data, representing the highs and lows of the market. This visual tool is utilized to identify patterns of higher highs and lower lows, enabling traders to gain insights into the overall trend and potential reversals in the market. When used in conjunction with our signals, MA bands and trend table, it may reinforce your interpretation of the underlying trend as well as provide insights into the trend strength.
*Note: These features are customizable via the settings menu in TradingView.
Calculations
How are buy/sell signals calculated?
The buy and sell signals are generated through a comprehensive calculation process that encompasses various types of analysis techniques. With permission from the author, wbburgin's Fourier transform is utilized to filter and extract relevant information from the price data, removing noise from the signals (filter is only applied in this feature). The buy and sell conditions are calculated based on a combination of volume-based analysis, and price movement patterns, employed to assess the direction and strength of market trends. The combination aims to produce a comprehensive view of both volume-based and price-based market dynamics. By integrating these analysis techniques, traders can gain insights into the relationship between volume, price, and market trends. This combined approach, as well as Fourier smoothing, can help identify potential market reversals, confirm trend strength, produce less noisy data and provide additional confirmation signals for trading decisions. By considering the insights provided by this analysis, the algorithm determines the appropriate actions, signaling the opportunities to enter or exit positions in the market. In summary, these calculations aim to identify favorable trading opportunities by considering factors such as trend strength, volume dynamics, and price patterns, ultimately assisting traders in making well-informed decisions in the market.
How are stop/loss and take/profit levels calculated?
The stop loss and take profit levels are calculated using a combination of technical factors, including the Average True Range (ATR) and Exponential Moving Average (EMA). The rationale for this combination is to enable dynamic risk management and align profit targets with the prevailing market conditions; ATR provides a measure of volatility and risk, while EMA helps identify the underlying trend, allowing for effective stop-loss and take-profit placement. These indicators are utilized to gauge market volatility and determine suitable levels for managing risk and securing potential profits. By incorporating ATR and EMA calculations, the algorithm generates dynamic stop loss and take profit levels that adapt to market conditions.
Calculating support and resistance levels
These levels help identify areas where the price tends to find support (support levels) or encounter resistance (resistance levels). This script utilizes pivot point calculations to determine these significant price levels, which can assist traders in trading decisions regarding potential price reversals, trend continuations, and entry/exit points in their strategies.
What are the moving average bands based on?
The moving average bands, based on VWMA (Volume Weighted Moving Average) calculations using OHLC4 price data, are visualized as unique bands on the chart. VWMA bands are chosen to find trends because they effectively combine volume-weighted calculations with moving averages, providing valuable insights into the strength and direction of price movements. These bands dynamically change color to reflect the prevailing trend. In an uptrend, the bands are represented by a green color, while in a downtrend, they appear in red. The VWMA bands utilize a unique counting method to capture trend movements and potential reversals.
How is the Trend Table calculated?
The underlying trends in the trend table are calculated based on counting methods applied to the VWMA bands. It utilizes specific thresholds to determine different trends, such as "Up Trend," "Down Trend," and "Ranging Trend." These thresholds are used to assess the current trend of the asset and provide valuable insights for traders.
Price Lines Calculation
The price lines are calculated based on the price data. They represent the range of prices, with one line plotted above the closing price and another line plotted below it. The space between these lines is filled to visualize the price volatility. Traders can utilize these lines to identify significant price levels and observe the overall price movement.
Disclaimer:
The information provided in my indicators/strategies/systems is not intended as financial advice. I assume no responsibility for any losses or damages, including loss of profits, resulting from the use of or reliance on such information.
All investments carry risks, and past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors bear full responsibility for their investment decisions, which should be based on their own evaluation of financial circumstances, investment objectives, risk tolerance, and liquidity requirements.
Please note that my indicators/strategies/systems are solely for educational purposes! DO NOT request access in the comment's section.
MTF Fusion - High Volume Expansion Channel [TradingIndicators]Exceptionally high volume and rapid price expansion are key markers of powerful moves, especially when they occur during a breakout or breakdown. The High Volume Expansion Channel (HVEC) uses our multi-timeframe fusion and price compression/expansion algorithms to look for high volume and rapid expansion from multiple higher timeframes at once. It uses this info to determine a high volume and expansion 'grade', and then encodes this result into a colored channel. This channel coloring varies in intensity based on how exceptionally high volume is and how rapidly price is expanding in either direction.
What is MTF Fusion?
Multi-Timeframe (MTF) Fusion is the process of combining calculations from multiple timeframes higher than the chart's into one 'fused' value or indicator. It is based on the idea that integrating data from higher timeframes can help us to better identify short-term trading opportunities within the context of long-term market trends.
How does it work?
Let's use the context of this indicator, which calculates a 'high volume and expansion grade' (let's call it HVEG), as an example to explain how MTF Fusion works and how you can perform it yourself.
Step 1: Selecting Higher Timeframes
The first step is to determine the appropriate higher timeframes to use for the fusion calculation. These timeframes should typically be chosen based on their ability to provide meaningful data and action which actively affect the price action of the smaller timeframe you're focused on. For example, if you are trading the 5 minute chart, you might select the 15 minute, 30 minute, and hourly timeframe as the higher timeframes you want to fuse in order to give you a more holistic view of the trends and action affecting you on the 5 minute. In this indicator, four higher timeframes are automatically selected depending on the timeframe of the chart it is applied to.
Step 2: Gathering Data and Calculations
Once the higher timeframes are identified, the next step is to calculate the data from these higher timeframes that will be used to calculate your fused values. In this indicator, for example, the HVEG value is calculated by determining the HVEG for all four higher timeframes.
Step 3: Fusing the Values From Higher Timeframes
The next step is to actually combine the values from these higher timeframes to obtain your 'fused' indicator values. The simplest approach to this is to simply average them. If you have calculated the HVEG value from three higher timeframes, you can, for example, calculate your 'multi-timeframe fused HVEG' as (HigherTF_HVEG_1 + HigherTF_HVEG_2 + HigherTF_HVEG_3) / 3.0.
Step 4: Visualization and Interpretation
Once the calculations are complete, the resulting fused indicator values are plotted on the chart. These values reflect the fusion of data from the multiple higher timeframes, giving a broader perspective on the market's behavior and potentially valuable insights without the need to manually consider values from each higher timeframe yourself.
What makes this script unique? Why is it closed source?
While the process described above is fairly unique and sounds simple, the truly important key lies in determining which higher timeframes to fuse together, and how to weight their values when calculating the fused end result in such a way that best leverages their relationship for useful TA.
This MTF Fusion indicator employs a smart, adaptive algorithm which automatically selects appropriate higher timeframes to use in fusion calculations depending on the timeframe of the chart it is applied to. It also uses a dynamic algorithm to adjust and weight the high volume and price expansion grade calculations depending on each higher timeframe's relationship to the chart timeframe. These algorithms are based on extensive testing and are the reason behind this script's closed source status.
Included Features
MTF Fusion high volume and expansion coloring
MTF Fusion ATR-based channel for visual effect
Channel width customization and explanatory labels
Pre-built color stylings
Options
Show Channel Lines: Show/hide the upper and lower lines of the channel
Fill Channel: Fill the channel with coloring depicting the current degree of high volume and rapid price expansion
Channel Width Multiplier: Sets the width of the ATR-based channel
Explanatory Labels: Show/hide explanatory labels describing the visuals
Lookback: Select how you want the degree of high volume expansion to be calculated (longer = long-term high volume and expansion, shorter = short-term high volume and expansion)
Pre-Built Color Styles: Use a pre-built color styling (uncheck to use your own colors)
Manual Color Styles: When pre-built color styles are disabled, use these color inputs to define your own
Time Profile [QuantVue]The Time Profile indicator provides traders with a comprehensive view of volume and time-based price activity. The indicator combines two essential components into one indicator: the volume profile and the time profile.
The volume profile represents the distribution of trading volume at different price levels over a specified period and is displayed as a circle on the chart.
It provides a visual representation of where the majority of trading volume occurred and often highlights significant support and resistance levels. The volume profile is calculated as the closing price of the highest volume intraday bar, based on the user selected lower time frame.
On the other hand, the time profile focuses on analyzing the time spent at certain price levels. The indicator divides the current bars range into 10 blocks and counts the number of user selected lower time frame closes within each time block.
The block with the most lower time frame closes in it is deemed the time point of control. Traders can use this information to identify time blocks where price movement was most significant.
The time profile is drawn on the Y axis of the current bar to allow for an easy visualization of where price spent most of its time. Historical time profiles are also noted on previous bars with a dash marking the level.
The Time Profile indicator offers several customization options. Traders can adjust the timeframe for the lower time frame data, decide whether to display the time profile, and customize colors for visual clarity.
Additionally, traders can choose to highlight instances where the Volume POC and Time POC align, indicating a strong concentration of volume and price activity.
Don't hesitate to reach out with any questions or concerns.
We hope you enjoy!
Cheers.
Volume accumulation on past range [TCS] | VTAThe indicator calculates buy and sell volume values for different look-back periods based on the high, low, close, and tick volume data of the chart.
The range can be selected by adding the end date and the look-back period, which starts from the end date. It can calculate a maximum of 100 candlesticks.
The calculated buy and sell volume values are stored in separate variables, representing cumulative volume values over their respective look-back periods. It's important to note that the provided code calculates the buy and sell volume values individually for each look-back period and then sums them.
This information can be useful in understanding who is in control of the market during the selected range. The 'heatmap' is particularly helpful in identifying areas of high or low trading activity, which can help define support and resistance levels.
For example, if there is a greater accumulation of bullish volume than bearish volume and a break occurs in a resistance area, it may present a good entry opportunity.
Please note that this indicator is for educational purposes only and should not be used for trading without further testing and analysis.
Pip Counter with AlertsThis script can be used to count number of pips on a candle , use settings to change precision(decimals) , look back candles and alerts for number of pips change and percentage change on a candle. This works for only forex. Mention any suggestions or improvements in the comments. Hope it is useful for you all .
Volume+The enhanced Volume+ Indicator is a valuable tool that builds upon the traditional Volume indicator by incorporating a technique known as linear prediction.
In traditional Volume analysis, the volume data for a bar is only known once the bar has closed. However, with the enhanced Volume+ Indicator, we utilize linear prediction to estimate the closing volume of the k-bar before it actually closes. This estimation is based on historical volume observed in the market.
By employing this indicator, traders and investors can gain an early insight into the potential volume of the current bar, even before it concludes. This can be particularly useful for those who wish to make informed decisions based on volume analysis and its impact on price movements.
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增强的Volume+指标是一个有价值的工具，它通过结合一种称为线性预测的技术建立在传统成交量指标的基础上。
在传统的成交量分析中，只有在柱线收盘后才能知道柱线的成交量数据。然而，通过增强的Volume+指标，我们利用线性预测来估计 k 柱实际收盘前的收盘成交量。该估计基于市场观察到的历史交易量。
通过使用该指标，交易者和投资者可以在k柱结束之前就尽早了解当前柱的潜在交易量。对于那些希望根据交易量分析及其对价格变动的影响做出明智决策的人来说，这尤其有用。
Volume Change Indicator 0.1 [PATREND]
(Volume Change Indicator)
It is an analytical tool that studies the trading volume and its changes.
This indicator uses the Simple Moving Average (SMA) to calculate the average volume for a specific period of time.
Only candles that meet the required conditions are determined when the trading volume is greater than or equal to the calculated average.
This means that the indicator identifies a volume candle only when there is a significant change in trading volume compared to the average.
This indicator is distinguished from other similar indicators in that it allows the user to determine the required percentage of change as an additional condition for determining the volume candle.
If the conditions are correct, the indicator will display a diamond below the candle that meets the requirements specified by the user.
The indicator also displays lines above and below the candle and places "A" and "B" marks next to them to determine the start and end points.
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(Volume Change Indicator)
It is a useful analytical tool for traders who rely on volume analysis strategies in their trading decisions.
This indicator helps traders identify important volume candles and search for trading opportunities more accurately.
Traders can use this indicator to determine trends and search for potential entry and exit points.
The indicator helps determine when there is a significant change in trading volume compared to the average, indicating a possible change in direction.
In general
This indicator benefits traders who use volume analysis strategies in their trading decisions and who want additional information about trading volume and its changes.
It can also be used for all markets and on different time frames.
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Settings:
1. The user is allowed to determine whether they want to display the indicator through the "Show Indicator" box.
2. The user is allowed to determine the required percentage of change through the "Percent Change" box.
3. The user is allowed to determine the type of candles they want to display (Bearish, Bullish, both) through the "Candle Type" box.
4. The user is allowed to calculate the average candle volume using the "Average Vol" box.
5. The user is allowed to determine the length of lines and number of lines they want to display through "Max Lines" and "Line Length" boxes.
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We hope you find (Volume Change Indicator) useful in your analysis.
Feel free to try this indicator and customize its settings to meet your trading needs.
We look forward to seeing your opinions and comments on this indicator.
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(Volume Change Indicator)
هو أداة تحليلية تعمل على دراسة حجم التداول وتغيراته.
يستخدم هذا المؤشر متوسط الحجم المتحرك (SMA) لحساب متوسط الحجم لفترة زمنية معينة.
يتم تحديد الشموع التي تلبي الشروط المطلوبة فقط عندما يكون حجم التداول أكبر من أو يساوي المتوسط المحسوب.
هذا يعني أن المؤشر يحدد شمعة الكميات فقط عندما يكون هناك تغير كبير في حجم التداول مقارنة بالمتوسط.
يتميز هذا المؤشر عن غيره من موشرات الممثاله بأنه يتيح للمستخدم تحديد النسبة المئوية المطلوبة للتغيير كشرط إضافي لتحديد شمعة الكميات.
إذا كانت الظروف صحيحة، فسيعرض المؤشر ماسًا أسفل الشمعة التي تلبي المتطلبات المحددة من قبل المستخدم.
كما يعرض المؤشر خطوطًا فوق وتحت الشمعة ويضع علامتي "A" و "B" بجانبهما لتحديد نقاط البداية والنهاية.
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(Volume Change Indicator)
هو أداة تحليلية مفيدة للمتداولين الذين يعتمدون على استراتيجيات تحليل الحجم في قراراتهم التداولية.
يساعد هذا المؤشر المتداولين على تحديد شموع الكميات المهمة والبحث عن فرص تداولية بشكل أكثر دقة.
يمكن للمتداولين استخدام هذا المؤشر لتحديد الاتجاهات والبحث عن نقاط الإدخال والخروج المحتملة.
يساعد المؤشر على تحديد متى يكون هناك تغير كبير في حجم التداول مقارنة بالمتوسط، مما يشير إلى احتمالية حدوث تغير في الاتجاه.
In general
يستفيد من هذا المؤشر المتداولون الذين يستخدمون استراتيجيات تحليل الحجم في قراراتهم التداولية والذين يرغبون في الحصول على معلومات إضافية حول حجم التداول وتغيراته.
كما يمكن استخدامة لجميع الاسواق وعلى مختلف الفواصل الزمنية .
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Settings:
1. يُتيح للمستخدم تحديد ما إذا كان يرغب في عرض المؤشر من خلال خانة "Show Indicator".
2. يُتيح للمستخدم تحديد النسبة المئوية المطلوبة للتغير من خلال خانة "Percent Change".
3. يُتيح للمستخدم تحديد نوع الشموع التي يرغب في عرضها (Bearish, Bullish, both) من خلال خانة "Candle Type".
4. يُتيح للمستخدم حساب متوسط حجم الشموع باستخدام خانة "Average Vol".
5. يُتيح للمستخدم تحديد طول الخطوط وعدد الخطوط التي يرغب في عرضها من خلال خانات "Max Lines" و "Line Length".
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نأمل أن تجدواه مفيدًا في تحليلاتكم .
لا تترددوا في تجربة هذا المؤشر وتخصيص إعداداته لتلبية احتياجاتكم التداولية.
نتطلع إلى رؤية آرائكم وتعليقاتكم حول هذا المؤشر.
Fixed Range Anchored VWAPFixed Range Anchored VWAP
Description:
This indicator expands upon the popular Anchored VWAP concept by introducing user-defined start and end dates, allowing traders to select and analyze specific zones of interest. The VWAP is a widely recognized benchmark utilized by traders to assess the average price paid for a security, factoring in both volume and price. By incorporating volume data, the VWAP offers a comprehensive view of market sentiment and provides significant insights into intraday price action.
The Fixed Range Anchored VWAP takes the VWAP concept a step further by enabling traders to define a custom start and end date. This feature allows them to zoom in on specific periods of interest, such as earnings announcements, major news events, or significant price swings. By narrowing the focus to a specific time range, traders can gain a more detailed understanding of how the VWAP interacts with price movements within that specific zone.
How to Use:
1. Set the Start and End Dates: Define the desired start and end dates for the analysis period.
2. Analyze Price Movements: Observe how the VWAP interacts with price action within the defined range.
Price & Volume Profile (Expo)█ Overview
The Price & Volume Profile provides a holistic perspective on market dynamics by simultaneously tracking price action and trading volume across a range of price levels. So it is not only a volume-based indicator but also a price-based one. In addition to illustrating volume distribution, it quantifies how frequently the price has fallen within a particular range, thus offering a holistic perspective on market dynamics.
This unique and comprehensive approach to market analysis by considering both price action and trading volume, two crucial dimensions of market activity. Its distinctive methodology offers several advantages:
Holistic Market View: By simultaneously tracking the frequency of specific price ranges (Price Profile) and the volume traded at those ranges (Volume Profile), this indicator provides a more complete picture of market behavior. It shows not only where the market is trading but also how much it's trading, reflecting both price acceptance levels and market participation intensity.
Point of Control (POC): The POC, as highlighted by this indicator, serves as a significant reference point for traders. It identifies the price level with the highest trading activity, thus indicating a strong consensus among market participants about the asset's fair value. Observing how price interacts with the POC can offer valuable insights into market sentiment and potential trend reversals.
Support and Resistance Levels: Price levels with high trading activity often act as support or resistance in future price movements. The indicator visually represents these levels, enabling traders to anticipate potential price reactions.
Price Profile
Price and Volume Profile
█ Calculations
The algorithm analyzes both trade frequency and volume across different price levels. It identifies these levels within the visible chart range, then examines each bar to determine if the selected price falls within these levels. If so, it increases a counter and adds the trading volume. This process repeats across the visible range and is visualized as a horizontal histogram, each bar representing a price level and the bar length reflecting trade frequency and volume. Additionally, it calculates the Point of Control (POC), signifying the price level with the highest activity.
In summary: The histogram presents a dual perspective - not only the traded volume at each price level but also the frequency of the price hitting each range. The longer the bar, the more times the price has frequented that specific range, revealing key insights into price behavior and acceptance levels. These frequently visited areas often emerge as strong support or resistance zones, helping traders navigate market movements.
Please note that the indicator adjusts to the visible price range, making it adaptable to changing market conditions. This dynamic analysis can provide more relevant and timely information than static indicators.
█ How to use
This indicator is beneficial for traders as it offers insights into the distribution of trading activity across different price levels. It helps identify key areas of support and resistance and gives a visual representation of market sentiment and liquidity.
The point of control (POC) , which is the price level with the highest traded volume or frequency count, becomes even more crucial in this context. It marks the price at which the most trading activity occurred, signaling a strong consensus among market participants about the asset's fair value. If the market price deviates significantly from the POC, it could suggest an overbought or oversold condition, potentially leading to a price reversion.
Fair Price Areas/gaps are specific price levels or zones where an asset has spent limited time in the past. These areas are considered interesting or significant because they may have an impact on future price action.
Similar to the concept of fair value gaps, which refers to discrepancies between an asset's market price and its estimated intrinsic value, Fair Price Areas/gaps focus on price levels that have been relatively underutilized in terms of trading activity. When an asset's price reaches a Fair Price Area/gap, traders and investors pay attention because they expect the price to react in some way. The rationale behind this concept is that price tends to gravitate towards areas where it has spent less time in the past, as the market perceives them as significant levels.
█ Settings
The indicator is customizable, allowing users to define the number of price levels (rows), the offset, the data source, and whether to display volume or frequency count. It also adjusts dynamically to the visible price range on the chart, ensuring that the analysis remains relevant and timely with changing market conditions.
Source: The price to use for the calculation. Typically, this is the closing price. By considering the user-selected Source (typically the closing price), the indicator determines the frequency with which the price lands within each designated price level (row) over the selected period. In essence, the indicator provides a count of bars where the Source price falls within each range, essentially creating a "Price Profile."
Row Size: The number of price levels (rows) to divide the visible price range into.
Display: Choose whether to display the number of bars ("Counter") or the total volume ("Volume") for each price level.
Offset: The distance of the histogram from the price chart.
Point of Control (POC): If enabled, the indicator will highlight the price level with the most activity.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Discrete Fourier Transformed Money Flow IndexThe Discrete Fourier Transform Money Flow Index indicator integrates the Money Flow Index (MFI) with Discrete Fourier Transform (credit to author wbburgin - May 26 2023 ) smoothing to offer a refined and smoothed depiction of the MFI's underlying trend. The MFI is calculated using the formula: MFI = 100 - (100 / (1 + MR)), where a high MFI value indicates robust buying pressure (signaling an overbought condition), and a low MFI value indicates substantial selling pressure (signaling an oversold condition).
Why is the DFT and MFI combined?
The aim of this combination between DFT and MFI is to effectively filter out short-term fluctuations and noise, enabling a clearer assessment of the overall trend. This smoothing process enhances the reliability of the MFI by emphasizing dominant and sustained buying or selling pressures. This script executes a full DFT but only uses filtering from one frequency component. The choice to focus on the magnitude at index 0 is significant as it captures the dominant or fundamental frequency in the data. By analyzing this primary cyclic behavior, we can identify recurring patterns and potential turning points more easily. This streamlined approach simplifies interpretation and enhances efficiency by reducing complexity associated with multiple frequency components. Overall, focusing on the dominant frequency and applying it to the MFI provides a concise and actionable assessment of the underlying data.
Note: The FMFI indicator provides both smoothed and non-smoothed versions of the MFI, with the option to toggle the original non-smoothed MFI on or off in the settings.
Application
FMFI functions as a trend-following indicator. Bullish trends are denoted by the color white, while bearish trends are represented by the color purple. Circles plotted on the FMFI indicate regular bull and bear signals. Additionally, red arrows indicate a strong negative trend, while green arrows indicate a strong positive trend. These arrows are calculated based on the presence of regular bull and bear signals within overbought and oversold zones. To enhance its effectiveness, it is recommended to combine this indicator with other complementary technical analysis tools and integrate it into a comprehensive trading strategy. Traders are encouraged to explore a wide range of settings and timeframes to align the indicator with their unique trading preferences and adapt it to the current market conditions. By doing so, traders can optimize the indicator's performance and increase their potential for successful trading outcomes.
Utility
Traders and investors can employ this indicator to enhance their trend-following strategies. The white-colored components of the FMFI can help identify potential buying zones, while the purple-colored components can assist in identifying potential selling points. The red and green arrows can be used to pinpoint moments of strong bull or bear momentum, allowing traders to position themselves advantageously in their trading activities. Please note that future performance of any trading strategy is fundamentally unknowable, and past results do not guarantee future performance.
Volume Forks [Trendoscope]🎲 Volume Forks - Advanced Price Analysis with Recursive Auto-Pitchfork and Angled Volume Profile
The Volume Forks Indicator is a comprehensive research tool that combines two innovative techniques, Recursive Auto-Pitchfork and Angled Volume Profile . This indicator provides traders with valuable insights into price dynamics by integrating accurate pitchfork drawing and volume analysis over angled levels. The indicator does following things
Detects Pitchfork formations automatically on the chart over Recursive Zigzag
Instead of drawing forks based on fib levels, volume distribution over ABC of pitchfork is calculated and drawn in the direction of the handle.
🎲 Brief about Pitchfork
Pitchfork is drawn when price forms ABC pattern. Pitchfork draws a series of parallel lines in the direction of trend which can be used for support and resistance.
There are many methods of drawing pitchfork. In all cases, a line joining BC will make the base of pitchfork and fork lines are drawn from different points of the base. All the fork lines will be parallel. But, the handle of the base defines the direction of fork lines. Classification of pitchfork is mainly based on the starting and ending points of the handle.
🎲 Regular Types
Here, end of the handle is always fixed and it will be the mid point of B and C.
🎯 Andrews Pitchfork
Handle starts from A and joins the base at mid of B and C.
Forks are drawn based on fib ratios from the handle
🎯 Schiff Pitchfork
Handle starts from Bar of A and price of middle of AB and joins the base at mid of B and C
Forks are drawn based on fib ratios from the handle
🎯 Modified Schiff Pitchfork
Handle starts from mid of A and B and joins the base at mid of B and C
Forks are drawn based on fib ratios from the handle
🎲 Inside Types
Here, C will act as end of the handle which joins the Base BC .
🎯 Andrews Pitchfork (Inside)
Handle starts from A and joins the base at C
Forks are drawn based on fib ratios from the handle
🎯 Schiff Pitchfork (Inside)
Handle starts from Bar of A and price of (A+B)/2 and joins the base at C
Forks are drawn based on fib ratios from the handle
🎯 Modified Schiff Pitchfork (Inside)
Handle starts from mid of A and B and joins the base at C
Forks are drawn based on fib ratios from the handle
🎲 Brief about Pitchfork
The Angled Volume Profile technique expands on the concept of volume profile by measuring volume distribution levels over angled levels rather than just horizontal levels. By selecting a starting point and angle interactively, traders can assess volume distribution within specific price trends. This feature is particularly useful for analysing volume dynamics in trending markets.
🎲 Settings
Indicator settings include few things which determine the scanning of pitchforks and few which determines drawing of volume profile lines.
Please note that, due to pine limitations of 500 lines, if there are too many formations on the chart, volume profile may not appear correctly. If that happens, please reduce the number of volume forks per formation.
FFH Market structure v1The indicator determines the trend, its direction, confirmed trend, trend breakout levels (BoS), sideways ranges, volume profile point of control levels (vPoC) - all of this is conveniently displayed on the chart and helps complement your technical analysis.
The main idea of the script is to trade volume profile levels (vPoC) by identifying trends and sideways ranges. The script detect them and provides signals as soon as it detects a reaction from a volume level. You then complement these signals with your own technical analysis and make a decision to enter a trade. The script was developed solely to facilitate trading and address the issue of convenient visualization. Structure breakout levels are displayed as additional confirmations for making trading decisions. If we form a sideways range below/above such a trading level, it is a strong signal for me.
For sideways ranges, a volume level is calculated (vPoC), which also serves as input information for the signal engine. Signals are generated based on volume levels, with the calculation of stop loss (SL) and take profit (TP) levels. The SL is set at a certain percentage of the range boundaries or the previous high/low, as specified by a parameter. Targets are calculated intelligently based on trend reversal levels and volume levels.
The indicator parameters are individually tailored to each coin. The number of bars to determine the high/low is adjusted, as well as the allowable price deviation for defining the range boundaries on the first level. There are three modes for determining the sideways range, and data sources for highs/lows can be chosen (high/low/candle close, etc.). To make it more convenient for you to work with the indicator, there is an algorithm for automatic parameter adjustment built-in.
Currently script _only_ works for:
* BTC on 1-hour, 4-hour, and 1-day timeframes.
* ETC on 1-hour, 4-hour, and 1-day timeframes.
* Any altcoin on a 1-day timeframe.
The script will be beneficial to both novice traders, helping them understand market structure, sideways ranges, and identifying structure breakouts, as well as experienced traders, facilitating the process of plotting market structure elements on the chart and making trading decisions.
In any case, this script is not an investment idea.
All trading decisions you make based on the script are made independently and at your own risk.
Center of gravity - Mid Point + Volume (PolySlyme)I created an indicator which suits my scalping needs.
First it calculates the mid point of every candle, then it calculates where the closing price is in the candle and converts that to a percentage from the mid point. Then it looks at volume and calculates the difference (Positive/negative) from the previous volume bar and converts that to a percentage. These 2 factors are summed together to give a percentage number (positive or negative) then highlights the positive value. Bullish volume and price action turn to gold.
I use this for scalping to great effect. Enjoy.
Premium VWAP Trendfollow Strategy [wbburgin]This is a strongly-revised version of my VWAP Trendfollow Strategy, which follows a substantial reworking to address various structural inefficiencies with the script, such as the narrowing of the standard deviation band upon anchor reset. I will continue updating the original script with planned adjustments, this is a different proof-of-concept that builds off of the original script thesis with a different calculation method and execution.
This strategy is not built for any specific asset or timeframe, and has been backtested on crypto and equities from 1 min-1 day. The previous experimental strategy was heavily-correlated with the actual movement of the asset, which added unpalatable risk to the strategy and increased drawdown. This revised form has a more stable backtesting curve, but I want to heavily emphasize that I cannot guarantee that the strategy will be profitable for your circumstances. Backtesting only goes so far and every exchange has a different fee schedule, which can substantially eat into your profits. At the bottom I will explain the parameters behind the strategy results.
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The VWAP Trendfollow Strategy begins with a simple premise: to enter long when the price breaks above the upper standard deviation of a VWAP, and to close the position when the price breaks below the lower standard deviation of the VWAP. This is more effective than initiating the same strategy for a VWMA because the VWAP resets its anchor depending on your chosen anchor period, and the act of resetting its anchor also resets its standard deviation value. As a consequence, in sustained uptrends, the standard deviation is pulled upward to meet the price when the anchor resets, instead of requiring the price to fall all the way back down, as in the lower standard deviation band of the VWMA. This essentially acts as the VWAP itself raising the stop loss at each anchor period, which works well for the overall trend-following strategy.
However, this narrowing can still have consequences for a simple breakout strategy; as the price gradually oscillates towards above or below its standard deviation band, it may cross over the other and produce false signals. This oscillation is worrisome especially when fees are taken into account.
Thus, the premium VWAP Trendfollow strategy has a variable width which detects abnormal narrowing of the band, and adjusts it until it is reasonable to close the variability period. Additionally, a filter is added to the open/close signals to soften the frequency of signals without impacting performance significantly.
This script contains an ATR stop loss and an ATR take profit (which is also a difference between it and the original experimental script), with customizable inputs. The strategy results shown below are with initial capital of $1000, qty entry of 10%, and commissions of 0.06%. It works best on 24/7 instruments, like crypto, but I have found it also works with FAANG stocks or other high volatility / high volume assets. The issue with stocks, however, is that the price can jump/plummet because of abnormal events after-hours, which the strategy cannot pick up on until pre-trading begins the next morning. For that reason I suggest it be used on crypto and, because of its low % profitable (but high average winning trade in relation to its average losing trade), be used on an exchange that has minimal fees or volume-based discounts. In the unfortunate case that you cannot find a minimal fee or volume-discounted fee exchange (such as fellow Americans following the liquidity-retreat on Binance.US), I encourage you to test out the higher anchor periods for the higher timeframes, which will reduce the number of trades and increase the average % per trade.
Additionally, this is a long-term strategy used best for accumulation. It is currently long-only; that may change based off of user input.
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Disclaimer
Copyright by wbburgin.
The information contained in my Scripts/Indicators/Algorithms does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Custom Range Creator + Normalized Oscillators (Obv, Rsi, Mfi) Hello Traders!
Custom Range Creator is a specialized trading tool designed for traders who incorporate range analysis into their trading strategy.
Once you set the desired number of past candles or provide a manual input, the indicator will automatically draw a range for you. This unique feature allows you to customize the range based on the highest and lowest points within a specified number of bars, known as the "Dynamic Range." Furthermore, you have the flexibility to define up to three additional ranges manually using custom inputs. The lines and labels associated with these ranges can be fully customized in terms of style, color, and width to align with your personal preferences.
Dynamic Range Capabilities:
The indicator automatically generates a range by default, identifying the highest and lowest points within the last 200 bars. However, you have the ability to define the number of bars back by adjusting the setting in the menu. Moreover you can define the range based on either the wicks or the bodies of the candles.
The range includes the following components:
☀ Range High: The highest price point within the selected number of bars in the past
☀ Range Low: The lowest price point within the selected number of bars in the past
☀ Range Mid-Point: The calculated middle value between the Range High and Range Low
☀ First Quartile (Q1): The midpoint between the Range Low and the Range Mid-Point, effectively identifying the 25% level within the range
☀ Third Quartile (Q3): The midpoint between the Range Mid-Point and the Range High, identifying the 75% level within the range
By incorporating these critical levels within a price range, our Dynamic Range provides you with a comprehensive view of how the market evolves, enabling you to make more informed trading decisions.
Manual Ranges Capabilities:
In addition to the Dynamic Range, you can manually define up to three more ranges. By specifying your desired high and low price values as inputs, the system automatically draws the range based on your inputs. Once drawn, you can further adjust the range using the bar offset option, which allows you to shift the entire range backward or forward by a specified number of bars.
Each manually defined range includes the following components:
☀ Range High: Your user-defined highest price point
☀ Range Low: Your user-defined lowest price point
☀ Range Mid-Point: The calculated middle value between the Range High and Range Low
☀ First Quartile (Q1): The midpoint between the Range Low and the Range Mid-Point, identifying the 25% level within the range
☀ Third Quartile (Q3): The midpoint between the Range Mid-Point and the Range High, identifying the 75% level within the range
This allows you to precisely define your desired price range and visually represent it on the chart. The customizable manual ranges provide you with a powerful tool for analyzing price dynamics and identifying potential support and resistance levels.
Both Dynamic Range and Manual Ranges Capabilities:
a) Timeframe-Adaptive: This indicator dynamically adjusts to your selected timeframe. Whether you are a day trader or a long-term investor, this tool adapts to meet your needs.
b) Complete Customization: You have the flexibility to customize every aspect of "Custom Range Indicator". You can modify the color, style, and width of each of the five lines to seamlessly integrate them into your chart setup. Choose from various line styles, including solid, dashed, or dotted, and select colors that suit your visual preferences. Additionally, you can customize the color and text of the labels. Additionally, you can utilize the bar offset option to fine-tune the placement of the range within your analysis.
c) Hide Lines and Labels: You have the option to hide each line or label of the range individually, or hide the entire range with labels or without labels. This customization feature allows you to focus on specific aspects of the chart and declutter the visual representation of the ranges when needed.
Normalized Oscillators
Normalization is a process applied in data handling and statistics, and in the context of trading indicators, it can be incredibly useful. Trading indicators such as Volume, the Relative Strength Index (RSI), the Money Flow Index (MFI), and On Balance Volume (OBV), often vary in their range and scale.
Normalization adjusts these values to fit within a specific range, making different indicators directly comparable and aiding in the interpretation of their relationship and impact on price action. This can offer additional insights for traders, making it easier to identify trends, patterns, and potential trading signals across different indicators.
This indicator offers a selection of three oscillators to normalize and Volume Data:
☀Volume: The amount of a particular asset that is traded within a particular period.
☀Relative Strength Index (RSI): A momentum oscillator that measures the speed and change of price movements. It is typically used to identify overbought or oversold conditions in a market.
☀Money Flow Index (MFI): A momentum indicator that uses price and volume data to identify overbought or oversold signals in an asset.
☀On Balance Volume (OBV): A technical trading momentum indicator that uses volume flow to predict changes in price. It does this by cumulatively adding volume on days when the price increases, and subtracting volume on days when the price decreases.
This script also offers aesthetic customizations for the plot, which can enhance readability and visual appeal:
✔"Plot Color": This input lets users select the color of the plotted line on the chart, allowing for personalization and better visual differentiation when multiple indicators are used.
✔"Plot Width": Users can also adjust the thickness of the plotted line, enhancing visibility based on individual preference or screen resolution.
Why is useful the Normalization?
Normalization plays a crucial role in trading as it helps bring together diverse sets of information to support more informed decision-making. For instance, observing the correlation between the price chart and oscillators like On Balance Volume (OBV) near range levels can provide valuable insights.
Consider this example using a daily (1D) Ethereum (ETH) chart:
We observe that the price is at a Range Quarter, making a higher high while the OBV makes a higher low. This scenario presents a significant degree of confluence. The price is at a critical range level and there is a bearish divergence between the OBV and the price. Such confluence often indicates a potential shift in market dynamics, and as observed, the price trends lower subsequently.
Below is the same scenario represented on a linear chart, providing a clearer visualization:
Normalization enables us to make these comparisons more accurately, ultimately leading to more reliable trading signals and better trading outcomes. By adjusting the scale of various indicators to a standard range, traders can directly compare and correlate them to price action, making it easier to spot trends, divergences, and other key market patterns.
Keep attention!
It is important to note that no trading indicator or strategy is foolproof, and there is always a risk of losses in trading. While this indicator may provide useful information for making conclusions, it should not be used as the sole basis for making trading decisions. Traders should always use proper risk management techniques and consider multiple factors when making trading decisions.
adaptive_mfi
█ Description
Money flow an indexed value-based price and volume for the specified input length (lookback period). In summary, a momentum indicator that attempt to measure the flow of money (identify buying/selling pressure) through the asset within a specified period of time. MFI will oscillate between 0 to 100, oftentimes comprehend the analysis with oversold (20) or overbought (80) level, and a divergence that spotted to signaling a further change in trend/direction. As similar to many other indicators that use length (commonly a fixed value) as an input parameter, can be optimized by applied an adaptive filter (Ehlers), to solve the measuring cycle period. In this indicator, the adaptive measure of dominant cycle as an input parameter for the lookback period/n, will be applied to the money flow index.
█ Money Flow Index
mfi = 100 - (100/(1 + money_flow_ratio))
where:
n = int(dominant_cycle)
money_flow_ratio = n positive raw_money_flow / n negative raw_money_flow
raw_money_flow = typical_price * volume
typical_price = hlc3
█ Feature
The indicator will have a specified default parameter of: hp_period = 48; source = ohlc4
Horizontal line indicates positive/negative money flow
MFI Color Scheme: Solid; Normalized
CVD+ - Multi Symbol Cumulative Volume DeltaEdit of TradingView's LTF CVD
TradingView's CVD is already the most accurate CVD on the platform because of the LTF data. The purpose of the edit is to provide the ability to compare volume flow between multiple exchanges, futures & spot, multiple symbols or any other potential use case. All in single layout or even a single pane.
Added features:
- Option to manually select a symbol from which to calculate the LTF CVD
- Option to normalize the selected symbol's CVD to the chart's symbol's CVD (Useful when you want to compare futures and spot on the same pane)
- Label that displays the selected symbol's name and exchange
- Changed presets to plot the CVD line as the predetermined option
All of TV's original features remain the same.
Trend Reversal PredictorTrend Reversal Predictor - An Indicator for Identifying Potential Trend Reversals
This indicator is designed to help traders identify potential trend reversals in the financial markets. It combines multiple criteria including trend identification, volume analysis, average net price movement, and RSI (Relative Strength Index) crossing its moving average to highlight potential danger zones where a trend reversal may occur.
How it Works:
1. Trend Identification: The script uses the Hull Moving Average (HMA) and Parabolic SAR to determine the prevailing trend. The HMA is a smoothing indicator that reduces lag and provides a clear representation of the trend direction.
2. Danger Zone Identification: The script analyzes volume-related metrics and average net price movement to identify potential danger zones where trend reversals might occur. It calculates the rate of change of buying and selling volume and compares it to their respective averages. Additionally, it considers the average net price movement over a specified period.
3. RSI Integration: The script incorporates the RSI, a momentum oscillator, to evaluate overbought and oversold conditions. It calculates the RSI based on user-defined length and source inputs. It also calculates the RSI's moving average using different types of moving averages (SMA, EMA, etc.) specified by the user.
4. Trend Ending Prediction: By combining the conditions of trend identification, volume analysis, average net price movement, and RSI crossing its moving average, the script identifies potential trend reversal points or danger zones. These danger zones are highlighted on the chart using different colors to represent potential uptrend and downtrend reversals.
How to Use:
2. Danger Zone Highlighting: The script highlights potential danger zones on the chart using orange color for uptrend danger zones and blue color for downtrend danger zones. These danger zones suggest areas where a trend reversal may occur.
3. Additional Analysis: Traders can further analyze the danger zones based on their trading strategy and risk management. Consider other technical indicators, price action, and fundamental factors to make informed trading decisions.
Please note that this script provides potential signals for trend reversals but does not guarantee their occurrence. It is important to use this indicator in conjunction with other technical analysis tools and risk management techniques to make well-informed trading decisions.
By understanding the underlying concepts and using the provided visual cues, traders can leverage the Trend Reversal Predictor to potentially identify potential trend reversals in the markets.
Volume-Blended Candlesticks [QuantVue]Introducing the Volume-Blended Candlestick Indicator, a powerful tool that seamlessly integrates volume information with candlesticks, providing you with a comprehensive view of market dynamics in a single glance.
The Volume-Blended Candlestick Indicator employs a unique approach of projecting volume totals by calculating the total volume traded per second and comparing it to the time left in the session as well as the historical average length selected by the user.
The indicator then dynamically adjusts the opacity of the candlestick colors based on the intensity of the projected volume. As volume intensifies, the candlestick colors become more pronounced, while low volume will cause colors to fade allowing you to visually perceive the level of buying or selling.
One of the standout features of the Volume-Blended Candlestick Indicator is its ability to identify pocket pivots. A pocket pivot is an up day with volume greater than any of the down days volume in the past 10 days. By highlighting these pocket pivots on your chart, the indicator helps you identify potential stealth accumulation.
In addition to blending volume with candlesticks and spotting pocket pivots, this versatile indicator provides you with an insightful table displaying key volume metrics. The table includes the average volume, average dollar volume, and the up-down volume ratio, allowing you to get a clear picture of buying and selling pressure.
Settings Include:
🔹Sensitivty Level: Normal, More, Less
🔹Volume MA Length
🔹Toggle Color based on previous close
🔹Show or hide volume info
🔹Chose candlestick colors
🔹Show or hide pocket pivots
🔹Show or hide volume info table
Don't hesitate to reach out with any questions or concerns.
We hope you enjoy!
Cheers.
Volume Orderbook (Expo)█ Overview
The Volume Orderbook indicator is a volume analysis tool that visually resembles an order book. It's used for displaying trading volume data in a way that may be easier to interpret or more intuitive for certain traders, especially those familiar with order book analysis.
This indicator aggregate and display the total trading volume at different price levels over the entire range of data available on the chart, similar to how an order book displays current buy and sell orders at different price levels. However, unlike a real-time order book, it only considers historical trading data, not current bid and ask orders. This provides a 'historical order book' of sorts, indicating where most trading activities have taken place.
Summary
This is a volume-based indicator that shows the volume traded at specific price levels, highlighting areas of high and low activity.
█ Calculations
The algorithm operates by calculating the cumulative volume traded in each specific price zone within the range of data displayed on the chart. The length of each horizontal bar corresponds to the total volume of trades that occurred within that particular price zone.
In essence, when the price is in a specific zone, the volume is added to the bar representing that zone. A thicker bar implies a larger price zone, meaning that more volume is accumulated within that bar. Therefore, the thickness of the bar visually indicates the amount of trading activity that took place within the associated price zone.
█ How to use
The Volume Orderbook indicator serves as a beneficial tool for traders by identifying key price levels with a significant amount of trading activity. These high-volume areas could represent potential support or resistance levels due to the large number of orders situated there. The indicator's ability to spotlight these zones might be particularly advantageous in pinpointing breakouts or breakdowns when prices move beyond these high-volume regions. Moreover, the indicator could also assist traders in recognizing anomalies, such as when an unusually large volume of trades occurs at unconventional price levels.
Identify Key Price Levels: The indicator highlights high-volume areas where a significant number of trades have occurred, which could act as potential support or resistance levels. This is based on the notion that many traders have established positions at these prices, so these levels may serve as significant areas for market activity in the future.
Volume Nodes: These are the peaks (high-volume areas) and troughs (low-volume areas) seen on the indicator. High-volume nodes represent price levels at which a large amount of volume has been traded, typically areas of strong support or resistance. Conversely, low-volume nodes, where very little volume has been traded, indicate price levels that traders have shown little interest in the past and could potentially act as barriers to price. It's important to note that while high trading volume can imply significant market interest, it doesn't always mean the price will stop or reverse at these levels. Sometimes, prices can quickly move through high-volume areas if there are no current orders (demand) to match with the new orders (supply).
Analyze Market Psychology: The distribution of volume across different price levels can provide insights into the market's psychology, revealing the balance of power between buyers and sellers.
Highlight Potential Reversal Points: The indicator can help identify price levels with high traded volume where the market might be more likely to reverse since these levels have previously attracted significant interest from traders.
Validate Breakouts or Breakdowns: If the price moves convincingly past a high-volume node, it could indicate a strong trend, suggesting a potential breakout or breakdown. Conversely, if the price struggles to move past a high-volume node, it could suggest that the trend is weak and might potentially reverse.
Trade Reversals: High-volume areas could also indicate potential turning points in the market. If the price reaches these levels and then starts to move away, it might suggest a possible price reversal.
Confirm Other Signals: As with all technical indicators, the "Volume Orderbook" should ideally be used in conjunction with other forms of technical and fundamental analysis to confirm signals and increase the odds of successful trades.
Summary
The Volume Orderbook indicator allows traders to identify key price levels, analyze market psychology, highlight potential reversal points, validate breakouts or breakdowns, confirm other trading signals, and anticipate possible trade reversals, thereby serving as a robust tool for trading analysis.
█ Settings
Source: The user can select the source, the default of which is "close." This implies that volume is added to the volume order book when the closing price falls within a specific zone. Users can modify this to any indicator present on their chart. For example, if it's set to an SMA (Simple Moving Average) of 20, the volume will be added to the volume order book when the SMA 20 falls within the specific zone.
Rows and width: These settings allow users to adjust the representation of volume order book zones. "ROWS" pertains to the number of volume order book zones displayed, while "WIDTH" refers to the breadth of each zone.
Table and Grid: These settings allow traders to customize the Volume order-book's position and appearance. By adjusting the "left" parameter, users can shift the position of the Volume order book on the chart; a higher value pushes the order book further to the right. Additionally, users can enable "Table Border" and "Table Grid" options to add gridlines or borders to the Volume order book for easier viewing and interpretation.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
RSI Trend Transform [wbburgin]The RSI Trend Transform indicator is a dual-concept indicator that transforms volume data and price data into two different RSI values, which can then be used together to determine trend strength and momentum. The volume RSI does not use any price data in its calculation - it is purely a transform from nondirectional volume into a directional indicator.
The RSI for all three RSI values (price, volume,combined average) can be plotted as either stochastic or normal. The RSI calculation is adapted for use on volume, which is why the normal ta.rsi() function is not used for the price RSI calculation; both use the same formula for indicator consistency.
How to Use the Indicator
In the examples below, the Price RSI is plotted in yellow and the Volume RSI is plotted in red (length = 200, which is why the indicator is large in these examples). The indicator can be used on any timeframe and any asset, provided volume data is provided by the vendor to TradingView.
Identifying Bullish Trends
A rising volume RSI with a rising price RSI signifies a bullish trend. Example 1:
Example 2:
You can use the combined RSI (the average of the volume RSI and the price RSI) to help with the identification of these trends:
Identifying Bearish Trends
A falling volume RSI with a falling price RSI signifies a bearish trend:
Example 2:
Settings
Source is the source of the price RSI, the volume RSI will by default use volume in its calculations. If you have other indicators on-chart, you could even use the ATR, a volatility indicator, or any nondirectional or directional indicator and transform it into the "price" RSI.
Length is both the length of the RSI and the stochastic.
The next three rows are for each RSI you can plot on the indicator: price RSI, volume RSI, and combined RSI (average of price and volume). The first checkbox plots/removes them from the chart, you can subsequently choose the type of RSI (regular or stochastic), the color of the plot, and the length of the EMA smoothing applied afterward to the plot.
Upper Band and Lower Band refer to the overbought and oversold lines, respectively.
A note about the combined RSI- you will be unable to spot divergences if the combined RSI is the only plot on the indicator, so I encourage you to use the combined RSI as a way to confirm the overall trend if you notice the price RSI and the volume RSI and trending similarly.
