Price and Volume Divergence Analyzer

16 Jan

How to Use the Indicator

Main Purpose:
Identify divergences between price movement, the volume line, and the weighted volume line to predict potential reversals.

Volume Line Explanation:

At zero: Equal buying and selling volume.
At 1: Double the buying volume vs. selling.
At -1: Double the selling volume vs. buying.
Divergence:
Price rising, volume line falling: Sellers offloading to buyers—likely reversal downward.
Price falling, volume line rising: Buyers stepping in—likely reversal upward.
Higher/Lower Volume Movement Line:

At zero: Equal volume required for price movement.
At 1: High efficiency—half the volume needed to move price.
At -1: Low efficiency—double the volume needed to move price.
Above volume line: Movement aligns with efficient volume.
Below volume line: Inefficient price movement.
Candle Fill Colors:

Shaded based on whether the current close is higher or lower than the previous close.
Settings Overview

EMA Settings:

Timeframe Selection:
Use a lower timeframe than your chart for accuracy. Avoid selecting a timeframe higher than your chart.
EMA Length Option:
Default: Sets lengths automatically (EMA = 14, EMA of EMA = 3).
User Input: Allows custom EMA length.
Calculation Type:
EMA: Standard exponential moving average.
EMA of EMA: Applies EMA three times for smoother values.
Volume Line Settings:

Line Width: Adjust thickness.
Colors:
More Buying: Green (default).
More Selling: Red (default).
Higher/Lower Volume Movement Line:

Line Width: Adjust thickness.
Colors:
Higher Volume Movement: Indicates higher volume required.
Lower Volume Movement: Indicates lower volume required.
Up/Down Candle Fill:

Colors:
Up Candle: Green (default).
Down Candle: Red (default).
Transparency: Adjust percentage for visibility.
Balance Line Settings:

Line Width and Color: Equilibrium line showing equal buying/selling volume at zero.

17 Jan

Nota Keluaran

Added Features:

• Percent Rank Volume squares at the top.
• RSI squares at the bottom.
• Legend with values and colors corresponding to RSI and Percent Rank levels (0 to 100).
• On/Off display buttons for portions of the indicator.
• Balance line style option.

RSI Levels:
Oversold: Dark purple, pink, red, orange.
Midpoint: Yellow.
Overbought: Green, cyan, blue, dark blue.

Volume Percent Rank:
Low Volume: Dark purple, pink, red, orange.
Midpoint (Average Volume): Yellow.
High Volume: Green, cyan, blue, dark blue.

18 Jan

Nota Keluaran

Updated Script Overview:

Use lower timeframes than your chart's.
Additional moving average options for volume and price-weighted lines.
Buy/Sell Volume Ratio Line (Green/Red):

Above zero (green): More trades closed higher than the previous close.
Below zero (red): More trades closed lower than the previous close.
If the buy/sell ratio line reaches 1, all trades within the candle session closed higher than the previous close.
If the buy/sell ratio line reaches -1, all trades within the candle session closed lower than the previous close.
Buy/Sell Dominant Line:

Turns blue when above the buy/sell ratio line, indicating greater upward movement per volume.
Turns purple when below the buy/sell ratio line, indicating greater downward movement per volume.
Fill Type Options:

Volume buying vs selling colors
Candle up and candle down colors
Buying vs Selling Color Logic:

Green fill:

Buyer/seller ratio line is above zero (more buys).
Buy/sell dominant is above the ratio line (easier to move up).
Yellow fill:

Same as green, but buy/sell dominant is below the ratio line (easier to move down).
Red fill:

Buyer/seller ratio line is below zero (more sells).
Buy/sell dominant is below the ratio line (easier to move down).
Orange fill:

Same as red, but buy/sell dominant is above the ratio line (easier to move up).
Percent Rank:

Remapped from 0-100 to -50 (lowest volume) to 50 (highest volume).

19 Jan

Nota Keluaran

Added standard EMA.

19 Jan

Nota Keluaran

updated Legend.

19 Jan

Nota Keluaran

corrected fill color system.

21 Jan

Nota Keluaran

When up volume is equal to down it is now split between the two.

3 Feb

Nota Keluaran

Indicator Overview
This update better reflects the original intent. If you have an account that can access one second data, it is recommended to change the setting to pull data from the 1 second timeframe onwards, otherwise leave it as 1 minute onwards.

Move Strength
Formula: Price % change × √Volume
Represents the intensity of price movement factoring in volume
Accumulation:
If price rises, the value is added to buys
If price falls, the value is added to sells
Strength Ratio: Buys / Sells, indicating relative buying vs. selling pressure
Distance per Volume.
Formula: Price movement / Volume
Measures how much price moves relative to the amount of volume used
Interpretation:
High values: Price moves easily with little volume, suggesting efficiency
Low values: Price struggles to move with low volume, indicating weakness
Mid-range values: Price movement is balanced in both directions
Percent Rank Lines
Move Strength: Ranges from 0 to 50 (50 = 100%)
Distance per Volume: Ranges from 0 to -50 (-50 = 100%, ignore the negative sign)
Meaning: Higher values indicate current conditions are stronger compared to historical occurrences
Extras
RSI dots appear when price reaches overbought or oversold levels
Label displays the current Move Strength & Distance per Volume
Move Strength > 0: More trades occurred during price increases than decreases
Same logic applies to Distance per Volume
Interpretation Tips
There are no strict buy/sell signals, but you can look for key conditions:

Potential Buy Signal:

Distance per Volume remains consistently high (>1) while price stays low
Move Strength is rising while price is falling (bullish divergence)
Potential Exit Signal:

Distance per Volume starts declining
RSI signals overbought
Move Strength begins turning down
Price remains high despite weakening momentum
By analyzing these factors together, you can better gauge the efficiency and strength of price movements.

3 Feb

Nota Keluaran

Fixed minor bug.