Enhanced Volume Order Flow Imbalance

21 Mac

The Enhanced Volume Order Flow Imbalance (E-VOFI) indicator provides insights into market sentiment by analyzing volume imbalances between bullish and bearish price movements. By identifying the relative strength of buying versus selling activity, this indicator helps traders understand the underlying momentum of price movements.

Key Features:
Volume Imbalance: The indicator calculates the imbalance between the volume of bullish bars (upward price movement) and bearish bars (downward price movement). A positive value indicates stronger buying pressure, while a negative value indicates stronger selling pressure.

Smoothed Imbalance: A smoothed version of the imbalance is plotted as a line, helping traders identify longer-term trends in market sentiment.

Color-Coding: The imbalance is displayed as a histogram with green bars representing bullish dominance and red bars representing bearish dominance.

Zero Line: The indicator includes a zero line for reference, making it easier to visualize when market sentiment is neutral or tilted in one direction.

Inputs:
Lookback Period: The number of bars used to calculate the moving averages of bullish and bearish volume (default: 14).

Strong Imbalance Threshold: A threshold to define a strong imbalance. This option has been removed from the script in the latest version, simplifying the display to only show the imbalance histogram and the smoothed line.

Usage:
The E-VOFI indicator can help traders assess the strength of buying or selling pressure in the market. By observing the imbalance histogram, traders can make more informed decisions about market trends and potential reversals. The smoothed imbalance line provides a clearer view of longer-term trends, helping to filter out short-term noise.

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Nota Keluaran

UPDATES: Volume Order Flow Imbalance Indicator with Heuristic Candle Logic and Crossover Signals

Heuristic Candle Classification
Utilizes wick analysis, engulfing patterns, and momentum heuristics to classify candles as bullish or bearish with high probability.

Signal Generation via Crossover Logic
Buy signals occur when raw imbalance crosses above the smoothed value, while sell signals are triggered on downward crossunders—effectively capturing turning points in sentiment.

semalam

Nota Keluaran

UPDATES: Volume Order Flow Imbalance Indicator with Heuristic Candle Logic and Crossover Signals

I've included the previous version for reference to highlight the differences with the new one. The updated version now features buy and sell signals. Additionally, I changed the default plot style of the Imbalance from a histogram to a line to make the crossover points more visible.

Heuristic Candle Classification
Utilizes wick analysis, engulfing patterns, and momentum heuristics to classify candles as bullish or bearish with high probability.

Signal Generation via Crossover Logic
Buy signals occur when raw imbalance crosses above the smoothed value, while sell signals are triggered on downward crossunders—effectively capturing turning points in sentiment.