[blackcat] L1 Stock Volume Analyzer

17 Okt 2020

Level: 1

Background

The basic volume analysis is that buyers are in control when the price is increased. The purchase volume takes place at the offer price and represents the lowest advertised price at which sellers sell their shares. When someone buys shares at the current asking price, it shows that someone wants the shares and is included in the purchase volume metric.

Function

[blackcat] L1 Stock Volume Analyzer plot colorful volume candles with different meanings: red for red price bars, green for green price bars, yellow for active buying volume, fuchsia for active selling volume, navy for high active buying volume turn over rate, and white for high active selling volume turn over rate.

Key Signal

VOLUME SIGNAL:
activbuying ---> active buying volume
activselling ---> active selling volume
abtor ---> high active buying turn over rate
astor ---> high active selling turn over rate

PRICE SIGNAL:
cd ---> price covergence and divergence
positioning ---> price positioning
callthshots ---> call the shorts price signal

Pros and Cons

Pros:

1. extract volume detailed information to judge price trend together
2. price convergence and divergence help to identify long and short entry points

Cons:

1. price convergence and divergence visually works well only for <= 8H time frame
2. this indicator only works for stock trading pairs


Remarks

In order to put price and volume in a unified scale, this indicator is scaled. This scaling is not suitable for all markets. At present, it has only been optimized in the stock exchange market.

Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

3 Ogo 2021

Nota Keluaran

Add alerts

3 Ogo 2021

Nota Keluaran

Optimized alerts and bars for crypto. Add volume bar scaler input setting.

4 Mac 2023

Nota Keluaran

add max_labels_count = 500

28 Mac

Nota Keluaran

OVERVIEW The [blackcat] L1 Stock Volume Analyzer is a TradingView script designed to provide comprehensive analysis of stock volumes through various indicators like active buying/selling volume, bull/bear price levels, and turnover rates. It also includes visualizations such as candlestick plots and fills to represent different market conditions and potential trading signals.
FEATURES

Active Buying/Selling Calculation: Determines the strength of buying and selling pressure based on the relationship between prices and trading volume.
Bull/Bear Price Levels: Calculates upper and lower thresholds for bullish and bearish trends using Exponential Moving Averages (EMA).
Turnover Rate: Measures the liquidity of trades relative to the overall trading volume.
Candlestick Plots: Visualizes regular and adjusted volume data along with active buying/selling and turnover rates.
Price Trend Analysis: Uses EMAs to detect and visualize price trends alongside volume data.
Trading Signals: Identifies crossover points to generate buy and sell signals.
Alerts: Sets up alert conditions for both buy and sell signals.
HOW TO USE

Add the Script: Copy the script code into the Pine Script editor in TradingView and save it as an indicator.
Configure Settings: Adjust the Volume Scaler input parameter to scale the bull/bear price levels according to your preference.
Interpret Data: Analyze the plotted candles and fills to gauge current market sentiment and identify potential entry/exit points.
Set Alerts: Enable alert notifications for the generated buy or sell signals by setting up alerts in TradingView's settings.
LIMITATIONS

The accuracy of the active buying/selling calculation may vary depending on the specific security being analyzed.
The script assumes certain market conditions; results may differ in volatile markets.
Alert effectiveness can be influenced by the frequency and timing of signal generation.
NOTES

This script uses advanced calculations involving moving averages and conditional logic to derive insights from trading volume.
Regular updates to the script may improve performance and accuracy over time.