Cumulative Volume Price

15 Nov 2023

Cumulative Volume Price

Purpose:
The indicator aims to display a weighted average price based on cumulative volume and cumulative price within defined lengths.

How it works

• Calculation Steps:
  Cumulative Volume (cumvol): the cumulative total volume.
  Cumulative Price (cumprice): the cumulative closing price.
  Net Value (net): Calculates the weighted average price by dividing the cumulative price by the cumulative volume.
  
  
• Formula:
  net = (cumulative price * volume) / cumulative volume
• Check for Rising Trend:
  Utilizes a simple moving average to detect rising trends.
  Uses the ta.rising() function to identify if the simple moving average is rising.
  If the condition is met, the net value is retained; otherwise, it is inverted.
  

Interpretation:
Positive Values (Green): Indicates a positive weighted volume average price, potentially suggesting upward price momentum or buying pressure.
Negative Values (Red): Represents a negative weighted volume average price, possibly signaling downward price momentum or selling pressure.

Usage:
Trend Confirmation: Helps confirm trends based on changes in the weighted average price.
Volume-Price Relationship: Illustrates the relationship between cumulative volume and price movement.

10 Dis 2023

Nota Keluaran

Added types of moving average and linear regression curve. In case of using linear regression curve length must be around 50