[GrandAlgo] Liquidity HeatmapThe Liquidity Heatmap is a unique indicator designed to identify and highlight zones where price is likely to react based on liquidity dynamics. Unlike tools that analyze volume across all price levels, this indicator focuses specifically on liquidity concentrated around potential reversal zones. By evaluating price action and volume at these critical levels, it identifies areas of heightened interest for traders.
Key Features:
Dynamic Liquidity Zones:
Automatically calculates liquidity zones based on historical price activity, ensuring real-time relevance.
Volume-Based or Candle Interaction Analysis:
Choose between volume-based evaluation to focus on order flow or candle-based interaction for a broader perspective.
Customizable Percentile Threshold:
Filter zones based on their significance by setting a threshold to display only the top liquidity areas.
Lookback Period Control:
Define how many candles the indicator should analyze, allowing you to focus on short-term or long-term liquidity levels.
Color-Coded Visuals:
Liquidity zones are displayed using gradients, with green representing potential bullish zones (below price) and red representing potential bearish zones (above price). Stronger zones are indicated with darker colors.
How It Works:
The Liquidity Heatmap divides the price range into multiple levels, evaluating each level for interaction with historical price data. Liquidity zones are calculated based on:
Volume Concentration: When enabled, the indicator evaluates zones using historical volume, highlighting areas with significant order flow.
Candle Interactions: When volume-based analysis is disabled, the indicator calculates the number of candles interacting with each zone to determine its importance.
Zones that meet the user-defined percentile threshold are highlighted on the chart. Color gradients indicate the strength of each zone, allowing traders to prioritize the most significant areas. Real-time alerts notify users when the price touches these zones, providing actionable insights.
The image illustrates the volume-based analysis feature of the Liquidity Heatmap indicator. Liquidity zones are dynamically highlighted with intuitive color gradients—green for bullish volume and red for bearish volume—providing a clear visual representation of areas with concentrated liquidity at potential reversal points. This feature helps traders focus on zones with significant market activity, enhancing their decision-making process.
Disclaimer
This indicator is a technical analysis tool designed to assist traders by providing insights into market conditions. It does not guarantee future price movements or trading outcomes and should not be relied upon as a sole decision-making tool. The effectiveness of this indicator depends on its application, which requires your trading knowledge, experience, and judgment.
Trading involves significant financial risk, including the potential loss of capital. Past performance of any tool or indicator does not guarantee future results. This script is intended for educational and informational purposes only and does not constitute financial or investment advice. Users are strongly encouraged to perform their own analysis and consult with a qualified financial professional before making trading decisions.
Volum
Volume Equilibrium Overlay(2 of 2)This is an overlay for a prior script I've created: Volume Equilibrium.
To sum it up in a brief manner, this script plots when there is "volume-equilibrium" aka prices that the market may see as "fair-value" relative to the specified timeframe. This script provides what my last code lacked and that is a visual representation of critical prices.
The arrows beside the indications indicate the direction that the buying/selling volume was heading towards.
UP ARROW - indicates that equilibrium was had via increasing buy volume
DOWN ARROW - indicates that equilibrium was had via decreasing buy volume
Remember, this doesn't inherently mean that a stock is supposed to go up or down. Its just a representation of 'fair-value' points using volume. Also remember... both indicators provide what the other lacks. It isn't necessary to use both but for a broad overview of volume it definitely helps to at least be aware of how this information can be represented. Perhaps... consider switching between the two to see what you may be missing.
I believe finding 'fair-value' points via volume and price action provides a more objective way to measure what prices one should look at rather then arbitrary lines plotted on a chart. For more information feel welcome to look at the script that this code is based off of.
majikal78
Custom Volume Ratio Indicator
The Custom Volume Ratio Indicator is a unique tool designed for traders to analyze price movements in relation to trading volume. This indicator calculates the ratio of the price range (the difference between the highest and lowest prices of a candle) to the volume of that candle. By visualizing this ratio, traders can gain insights into market dynamics and potential price movements.
Key Features:
1. Price Range Calculation: The indicator computes the price range for each candle by subtracting the lowest price from the highest price. This gives traders an understanding of how much price fluctuated during that specific time frame.
2. Volume Measurement: It utilizes the trading volume of each candle, which reflects the number of shares or contracts traded during that period. Volume is a critical factor in confirming trends and reversals in the market.
3. Ratio Visualization: The primary output of the indicator is the ratio of price range to volume. A higher ratio may indicate increased volatility relative to volume, suggesting potential trading opportunities. Conversely, a lower ratio could imply a more stable market environment.
4. Color-Coded Bars: The bars representing the ratio are color-coded based on the candle's closing price relative to its opening price. Green bars indicate bullish candles (where the close is higher than the open), while red bars indicate bearish candles (where the close is lower than the open). This visual cue helps traders quickly assess market sentiment.
5. Background Highlighting: The indicator also features a subtle background color to enhance visibility, making it easier for traders to focus on key areas of interest on the chart.
Use Cases:
• Trend Confirmation: Traders can use the volume ratio to confirm existing trends. A rising ratio alongside increasing volume may suggest a strong bullish trend, while a declining ratio could indicate weakening momentum.
• Volatility Assessment: By analyzing the price range relative to volume, traders can identify periods of high volatility. This information can be crucial for setting stop-loss orders or determining entry points.
• Market Sentiment Analysis: The color-coded bars provide immediate insight into market sentiment, allowing traders to make informed decisions based on recent price action.
Overall, the Custom Volume Ratio Indicator serves as a valuable addition to any trader's toolkit, providing essential insights into market behavior and helping to inform trading strategies.
Williams POIV By King OsamaWilliams POIV Indicator
By King Osama
The Williams POIV (Price and Open Interest From COT Data) is a technical indicator designed to combine price movement with open interest data to provide valuable insights into market strength and sentiment. By integrating price changes and open interest (a measure of market participation), the indicator aims to detect shifts in market dynamics and highlight potential turning points.
The Williams POIV works by calculating the relationship between price changes and the true range, combined with open interest data, to generate a composite value that reflects the accumulation or distribution of market positions. This gives traders a deeper understanding of market trends and potential reversals.
Key Features:
Price and Open Interest Integration: Merges price movements with open interest data to assess market strength.
Market Sentiment Insights: Helps identify periods of accumulation or distribution, offering a clearer picture of market conditions.
Trend Analysis: Can be used to spot divergences and potential trend reversals.
This indicator is ideal for traders looking to analyze the interplay between price movements and open interest, offering enhanced insight into market trends and price action.
X.Y Format Candle Volume & CompressionThe Volume & Compression Indicator is designed to help traders identify significant market moves by displaying two key metrics above each candle. The top number represents the Volume Ratio, which compares the current candle's volume to the average volume of recent candles. For example, a reading of 2.5 means the current volume is 2.5 times higher than average. When volume exceeds 9.9 times the average, the indicator displays an up or down arrow instead of a number, indicating extremely high volume in that direction.
The bottom number shows the Compression Ratio, which measures the relationship between volume and price movement. This helps identify when large amounts of volume are moving price significantly (low compression) versus when high volume isn't resulting in much price movement (high compression). High compression often indicates accumulation or distribution phases, while low compression with high volume typically suggests strong directional moves.
The indicator includes visual cues to help spot patterns. Dots appear above candles when both high volume and high compression persist over several candles, potentially indicating accumulation phases. Arrows mark possible pivot points after these accumulation periods. Additionally, the candles themselves can display a gradient color that intensifies with increased compression, making it easier to spot areas of interest.
For trading purposes, watch for volume spikes (top number above 2.0) as they can signal potential reversal points or confirm breakouts. High compression readings might precede breakouts, while low compression with high volume often confirms strong trend moves. The most significant signals often come when both metrics show high readings over multiple candles, suggesting sustained institutional interest.
Big Whale Finder (BWF)The Big Whale Finder (BWF) indicator is a technical analysis tool designed to detect large, hidden orders in financial markets. These orders, often placed by institutional traders or "whales," are significant in size but executed in a way that minimizes their impact on the market price.
This tool uses volume-based analysis to identify these orders, focusing on the detection of unusual volume spikes occurring in price regions where the market remains stagnant or shows minimal movement. The indicator aims to help traders identify potential areas of institutional activity, providing a strategic advantage by recognizing patterns of hidden liquidity.
Core Logic and Methodology
The BWF indicator combines two key factors to identify potential "whale" activity:
Volume Analysis: The first condition evaluates the volume relative to its average over a defined period. This is done by calculating the Simple Moving Average (SMA) of the volume and comparing current volume levels against this average. When the volume is significantly higher than the historical average, it signals the presence of a potentially large order.
Volume Threshold=Current Volume>(Average Volume×Threshold Factor)
Volume Threshold=Current Volume>(Average Volume×Threshold Factor)
According to market theory, large trades or "whale" activities often require substantial volumes to be executed. Identifying these anomalies can offer insights into the behavior of institutional players who seek to execute large transactions without disturbing the market (Lo, 2004).
Price Movement Analysis: The second condition considers the price change in relation to the volume. Specifically, if high volumes are detected but the price remains relatively stable, this suggests that large orders are being executed without significantly impacting the market price.
This phenomenon often occurs in "liquidity pools" or through algorithms designed to mask the true size of the orders. The indicator uses a price change threshold to identify this stagnation, with the condition that price movement remains below a certain percentage threshold.
Price Stagnation=(∣Close−Open∣Open)<Price Change Threshold
Price Stagnation=(Open∣Close−Open∣)<Price Change Threshold
This principle is aligned with research on market microstructure, which suggests that large institutional orders often attempt to hide their true size to avoid influencing the market (Hasbrouck, 1991).
Practical Use and Benefits
The Big Whale Finder (BWF) indicator is useful for identifying zones where large, potentially hidden orders are being executed. Traders often seek to detect these areas to better understand market dynamics and anticipate price movements. The benefits of using such an indicator include:
Increased Market Awareness: By identifying areas of high volume with minimal price movement, traders can spot potential "whale" activity that may indicate significant institutional involvement. These hidden large orders are not immediately visible in the market price, but their impact can become evident over time (Kyle, 1985).
Strategic Entry and Exit Points: Identifying areas with hidden liquidity can help traders make more informed decisions about where to enter or exit positions. A large institutional order may signal strong interest in a specific price level, and understanding this can guide strategic decisions regarding support and resistance levels.
Mitigating Price Impact: Knowing where these large orders are placed can also assist traders in avoiding price levels where they are more likely to face slippage. For instance, avoiding areas where whales are accumulating or distributing assets may help reduce the risk of unfavorable price movements.
Scientific Foundations and References
The underlying logic of this indicator draws heavily on established theories in market microstructure and behavioral finance, particularly the concept of hidden liquidity and information asymmetry. Market participants, especially institutional traders, frequently employ strategies to hide the true size of their orders to avoid influencing the market (Hasbrouck, 1991). These strategies include the use of dark pools, where large trades are executed privately and away from public view, and algorithmic trading systems that spread large orders across multiple price levels to minimize market impact (Lobel, 2012).
Research has shown that understanding these hidden liquidity dynamics can give traders a significant edge. For example, Hasbrouck (1991) emphasized that large, hidden orders may signal upcoming price trends, as they often precede significant market moves. Similarly, Lo (2004) highlighted that institutional traders' strategies to hide orders are a critical factor in market behavior, suggesting that the ability to detect these activities could enhance trading strategies.
Conclusion
The Big Wale Finder (BWF) indicator provides a powerful tool for identifying areas where large orders are being executed without significantly impacting the price. By analyzing volume and price stagnation, it helps traders uncover hidden liquidity, which is critical for anticipating potential price movements. This indicator's effectiveness lies in its ability to detect "whale" activity, offering traders insights into the actions of institutional market participants. Understanding and leveraging these insights can provide a strategic advantage in the highly competitive and information-rich landscape of financial markets.
References
Hasbrouck, J. (1991). Measuring the Information Content of Stock Trades. Journal of Finance, 46(1), 179-207.
Kyle, A. S. (1985). Continuous Auctions and Insider Trading. Econometrica, 53(6), 1315-1335.
Lo, A. W. (2004). The Adaptive Markets Hypothesis: Market Efficiency from an Evolutionary Perspective. Journal of Portfolio Management, 30(5), 15-29.
Lobel, S. (2012). Dark Pools, Price Discovery, and Market Liquidity. The Journal of Trading, 7(1), 35-42.
Time-Based VWAP (TVWAP)(TVWAP) Indicator
The Time-Based Volume Weighted Average Price (TVWAP) indicator is a customized version of VWAP designed for intraday trading sessions with defined start and end times. Unlike the traditional VWAP, which calculates the volume-weighted average price over an entire trading day, this indicator allows you to focus on specific time periods, such as ICT kill zones (e.g., London Open, New York Open, Power Hour). It helps crypto scalpers and advanced traders identify price deviations relative to volume during key trading windows.
Key Features:
Custom Time Interval:
You can set the exact start and end times for the VWAP calculation using input settings for hours and minutes (24-hour format).
Ideal for analyzing short, high-liquidity periods.
Dynamic Accumulation of Price and Volume:
The indicator resets at the beginning of the specified session and accumulates price-volume data until the end of the session.
Ensures that the TVWAP reflects the weighted average price specific to the chosen session.
Visual Representation:
The indicator plots the TVWAP line only during the specified time window, providing a clear visual reference for price action during that period.
Outside the session, the TVWAP line is hidden (na).
Use Cases:
ICT Scalp Trading:
Monitor price rebalances or potential liquidity sweeps near TVWAP during important trading sessions.
Mean Reversion Strategies:
Detect pullbacks toward the session’s average price for potential entry points.
Breakout Confirmation:
Confirm price direction relative to TVWAP during kill zones or high-volume times to determine if a breakout is supported by volume.
Inputs:
Start Hour/Minute: The time when the TVWAP calculation starts.
End Hour/Minute: The time when the TVWAP calculation ends.
Technical Explanation:
The indicator uses the timestamp function to create time markers for the session start and end.
During the session, the price-volume (close * volume) is accumulated along with the total volume.
TVWAP is calculated as:
TVWAP = (Sum of (Price × Volume)) ÷ (Sum of Volume)
Once the session ends, the TVWAP resets for the next trading period.
Customization Ideas:
Alerts: Add notifications when the price touches or deviates significantly from TVWAP.
Different Colors: Use different line colors based on upward or downward trends.
Multiple Sessions: Add support for multiple TVWAP lines for different time periods (e.g., London + New York).
Volume Comparison with Buyer/Seller PressureTHIS indicator is well-structured and provides a comprehensive way to analyze volume alongside buyer and seller pressure. This indicator helps traders analyze volume dynamics in the stock or cryptocurrency market while simultaneously assessing buyer and seller pressure. Its use case revolves around identifying strong buying or selling activity, neutral conditions, and volume trends over different time periods. Below is a breakdown of how to use this indicator:
This Pine Script indicator helps traders analyze volume dynamics in the stock or cryptocurrency market while simultaneously assessing buyer and seller pressure. Its use case revolves around identifying strong buying or selling activity, neutral conditions, and volume trends over different time periods. Below is a breakdown of how to use this indicator:
Key Features and Use Case
Volume-Based Insights:
Displays daily volume and compares it to the 3-day, 5-day, 10-day, and 20-day moving averages of volume. Helps traders identify days with unusual volume spikes relative to historical averages, signaling potential reversals or breakouts.
Buyer and Seller Pressure:
Measures buyer pressure: how much the closing price dominates the trading range of the day.
Measures seller pressure: how much the opening price dominates the trading range of the day.
Highlights areas where buying or selling pressure is particularly strong (≥ 0.75).
Background Signals:
Green Background: Strong buyer pressure (indicative of potential upward momentum).
Red Background: Strong seller pressure (indicative of potential downward momentum).
Gray Background: Neutral market conditions (neither buying nor selling dominance).
Alerts:
Alerts traders when:
Strong buying signals are detected.
Strong selling signals are detected.
The market is neutral, with neither buyers nor sellers in control.
Decision-Making Aid:
Combines volume analysis with price action (buyer/seller pressure) to help traders identify:
Potential breakout opportunities.
Reversal points.
Neutral zones where a trader might avoid trading due to indecision in the market.
How to Use It in Trading:------->
Add the Indicator:
Apply this Indicator to your Trading View chart to start visualizing the buyer/seller pressure and volume averages.
Interpret Volume Trends:
Look for days when daily volume significantly exceeds the 3-day, 5-day, 10-day, or 20-day average.
These could indicate:
A breakout when aligned with strong buyer pressure.
A sell-off when aligned with strong seller pressure.
React to Background Colors:
* Green Background (Strong Buyer Pressure):
Suggests buyers are dominating the market, and upward momentum is likely.
Use this signal to consider buying opportunities, especially if volume is above average.
* Red Background (Strong Seller Pressure):
Indicates sellers are in control, and prices might fall.
Use this signal to consider selling or shorting opportunities.
* Gray Background (Neutral Market):
Reflects indecision; avoid entering trades during these periods unless other signals support a strategy.
Volume Confirmation:
Combine volume analysis with buyer/seller pressure to confirm trends.
Example: A high daily volume with strong buyer pressure signals a high-probability uptrend.
Set Alerts:
Enable alerts to receive real-time notifications when the market generates strong buy/sell signals or enters a neutral zone.
Who Can Benefit:
* Day Traders: Quickly assess intraday market dynamics and volume trends.
* Swing Traders: Identify breakout opportunities or reversal points based on strong buyer/seller pressure.
* Volume Analysts: Compare historical volume averages to current conditions for deeper insights.
Limitations:
Does not guarantee success—should be combined with other technical indicators or strategies.
In low-volume markets, signals may produce false positives or unreliable results.
Assumes traders have basic knowledge of price action and volume analysis.
By integrating this indicator into your strategy, you gain a powerful tool to analyze buyer/seller dominance alongside volume trends, improving your market timing and trade execution.
The Buyer and Seller Pressure components in this indicator provide crucial insights into the market's sentiment and momentum by analyzing the price action relative to the trading volume. Here's how they are used:
1. Buyer Pressure:
Formula:
Buyer Pressure = (Close − Open) / (High − Low )
Interpretation:
* A high buyer pressure (≥ 0.75) indicates strong bullish sentiment, where the price closes much higher than it opened, and the range (high-low) is sufficiently wide.
* It identifies periods of aggressive buying, often signaling potential bullish trends or confirming upward momentum.
2. Seller Pressure:
Formula:
Seller Pressure = (Close − Open ) / (High -Low )
Interpretation:
*A high seller pressure (≥ 0.75) suggests strong bearish sentiment, where the price closes much lower than it opened, within a wide range.
*It helps identify periods of aggressive selling, signaling potential bearish trends or downward momentum.
Purpose in the Indicator:
1. Market Sentiment Analysis:
* Buyer Pressure and Seller Pressure allow traders to gauge market sentiment—whether buyers or sellers dominate a particular time frame.
* This helps in identifying trend reversals or confirmations.
2. Decision-Making Framework:
* The indicator uses thresholds (default 0.75) to classify the market into:
* Strong Buy Signal: When buyer pressure is dominant.
* Strong Sell Signal: When seller pressure is dominant.
* Neutral Signal: When neither buyer nor seller pressure dominates.
*This classification provides a straightforward decision-making tool for traders.
Risk Management:
*By identifying periods of strong buying or selling, traders can avoid entering trades in highly volatile or one-sided markets, which helps reduce risk.
Volume Confirmation:
*Integrating volume data with buyer/seller pressure helps confirm trends. For example:
*High buyer pressure accompanied by higher-than-average volume strengthens the bullish signal.
*Similarly, high seller pressure with higher-than-average volume confirms bearish signals.
Trade Timing:
*The indicator highlights conditions of potential entry (strong buy) or exit (strong sell), allowing traders to time their trades better based on real-time market activity.
Use Case:
*Example:
*Suppose the indicator shows Buyer Pressure = 0.85 with daily volume above the 3-day average. This combination suggests strong bullish activity with momentum, signaling a buy opportunity.
*Conversely, if Seller Pressure = 0.80 with volume above the 5-day average, it signals strong bearish momentum, ideal for selling or shorting.
This indicator combines buyer/seller pressure with volume dynamics, making it valuable for short-term and intraday traders looking for precise market entries and exits.
The background color in this indicator plays an important visual role in helping traders quickly identify the market sentiment based on buyer and seller pressure. It provides a dynamic, color-coded background that changes depending on the strength of the market's buying or selling activity.
Here's how it works:
Background Color Logic:
1. Green Background (Strong Buy Signal):
*Condition: The background turns green when buyer pressure is greater than or equal to 0.75 (strong buying pressure).
*Interpretation: A green background indicates that there is significant bullish sentiment in the market, with strong buying activity. Traders can interpret this as an environment conducive to buying or holding long positions.
*Visual Effect: This helps to quickly spot bullish market conditions, reinforcing potential entry signals for buyers.
2.Red Background (Strong Sell Signal):
*Condition: The background turns red when seller pressure is greater than or equal to 0.75 (strong selling pressure).
*Interpretation: A red background indicates that the market is dominated by selling, showing strong bearish sentiment. Traders can consider this as a signal to sell or short the asset.
*Visual Effect: The red background highlights moments when the market is heavily selling, prompting traders to either exit long positions or take short positions.
Gray Background (Neutral/Indecision Zone):
Condition: The background turns gray when neither buyer nor seller pressure exceeds 0.75. This means the market is neutral, with no dominant bullish or bearish sentiment.
Interpretation: A gray background suggests market indecision or balance between buyers and sellers. It can indicate periods of consolidation or sideways movement where no strong trend is forming.
Visual Effect: The gray background helps traders avoid entering trades when the market lacks a clear direction or when the sentiment is neutral, reducing risk during indecisive times.
Practical Use:
Instant Visual Confirmation:
*Traders can use the background color as an instant confirmation of the market’s sentiment. For instance, if the background turns green, traders might feel more confident in making a long (buy) trade.
*If the background turns red, it serves as a strong visual cue to short or exit a long position.
Helps with Trade Timing:
*The background color can be used in conjunction with other indicators and volume data to time entries and exits more effectively. For example:
*A green background with strong volume indicates a strong trend that could justify a buy.
*A red background with a significant volume surge signals strong selling pressure, which could prompt a sell.
Simplifies Market Analysis:
*For traders who prefer visual cues over complex analysis, the background color simplifies market conditions. Instead of focusing on individual numbers or values, the color-coded background gives them a quick, intuitive view of the market sentiment.
Summary:
* Green background = Strong buying pressure (bullish sentiment)
* Red background = Strong selling pressure (bearish sentiment)
* Gray background = Neutral market (indecision or balance between buyers and sellers)
This background color functionality helps traders stay aware of the prevailing market sentiment at a glance, providing an intuitive way to guide trading decisions.
Enhanced VFI Buyer/Seller PressureThe "Enhanced VFI Buyer/Seller Pressure" indicator serves multiple roles in technical analysis and trading decision-making. Here's an overview of its purpose and functionality:
1. Understanding Market Dynamics
* Buyer Pressure: Indicates how strongly buyers are influencing the price movement during a specific period.
* Seller Pressure: Reflects the intensity of selling activity and its impact on price movement.
Helps assess the balance of power between buyers and sellers.
2. Identifying Key Trading Signals
* Strong Buy Signal: Triggered when buyer pressure exceeds the threshold, suggesting strong upward momentum and a potential opportunity to buy.
* Strong Sell Signal: Triggered when seller pressure exceeds the threshold, indicating strong downward momentum and a potential opportunity to sell.
* Neutral Zone: Represents periods of indecision, where neither buyers nor sellers dominate, often leading to consolidation or reduced volatility.
3. Visualizing Volume Flow Index (VFI)
VFI: Measures the money flow in and out of the market, factoring in both price and volume dynamics.
Helps identify bullish or bearish trends through crossovers:
* VFI Crossover EMA: Signals a bullish shift.
* VFI Crossunder EMA: Signals a bearish shift.
4. Supporting Decision-Making
Histogram Visualization: Provides an easy-to-read representation of buyer and seller pressure over time.
Faded bars indicate weak pressure, discouraging action during periods of low market activity.
Background Color Dynamics: Offers immediate visual cues for prevailing market conditions:
* Green for strong buy signals.
* Red for strong sell signals.
* Gray for neutral conditions.
Zero Line: Acts as a baseline to differentiate positive and negative pressure, simplifying interpretation.
5. Alerts for Automation
Configurable alerts ensure traders are notified when:
Buyer or seller pressure exceeds predefined thresholds.
VFI crosses above or below the EMA, indicating potential trend changes.
Use Cases in Trading:
Momentum Trading: Identify when momentum strongly favors buyers or sellers.
Trend Confirmation: Use VFI crossover signals to confirm the direction of a trend.
Risk Management: Avoid trading in neutral or low-pressure zones where market direction is uncertain.
Volume-Driven Analysis: Leverage VFI to gauge the impact of volume on price trends, especially in high-volatility markets.
This indicator combines price action, volume analysis, and trend identification to provide a comprehensive tool for traders seeking an edge in market analysis.
Candles Volume HeatMap [BigBeluga]Candles Volume HeatMap
The Candle Volume HeatMap indicator is a unique and advanced tool that visualizes lower timeframe volume activity within higher timeframe candles, offering traders a granular perspective on volume distribution.
⚠️Important note: before using the indicator, it is necessary to apply it to the candles
🔵Key Features:
Volume HeatMap Visualization: The indicator breaks down each higher timeframe candle into 10 equal vertical segments (boxes) based on its high-to-low range. Each box represents a lower timeframe candle's volume activity, with more intense colors indicating stronger volume levels.
Lower Timeframe Integration: Automatically uses a timeframe 10x lower than the current chart. For example, on a 10-hour chart, it uses 1-hour candles to extract volume data.
POC (Point of Control): The highest volume box within each candle is marked with the volume value. The indicator also plots a horizontal POC line at the level of this box, highlighting significant areas of price interest. The POC line is removed once the price crosses it, ensuring the chart stays clean.
Delta Display (Optional): Traders can enable the Delta feature to analyze buyer vs. seller activity within each higher timeframe candle.
Delta is calculated by summing 10 lower timeframe candles: a bullish candle adds to buyers, while a bearish candle adds to sellers. Displays the net Delta percentage: positive values (white) indicate buyer dominance, while negative values (red) indicate seller dominance.
Dynamic Volume Scaling: The highest volume value in each candle is displayed inside its respective box, providing quick insights into critical price-volume levels.
🔵How It Works:
For each higher timeframe candle, the indicator analyzes 10 lower timeframe candles and maps their volume into 10 segments (boxes) between the high and low of the current candle.
The intensity of each box's color corresponds to the relative volume of the lower timeframe candle it represents.
The POC highlights the price level with the highest concentration of volume, aiding in identifying potential support/resistance zones.
Delta analysis offers additional insights into market sentiment by breaking down buyer and seller activity in each candle.
🔵Use Cases:
Spotting key volume areas within higher timeframe candles to identify support and resistance levels.
Analyzing volume concentration for potential breakout or reversal zones.
Leveraging Delta analysis to gauge market sentiment and confirm volume-based trends.
This indicator is ideal for traders seeking to combine volume analysis with price action, offering precise insights into volume distribution and market dynamics.
Volume EquilibriumThe intent behind this indicator is to provide comprehensive information relating to volume compared to multiple timeframes. This indicator allows one to see what the market 'theoretically' sees as 'fair-value' whilst also allowing one to gauge where the price of a stock is headed.
Volume Equilibrium
The main indicator finds the difference between buying volume and selling volume, under the basic presumption that more buying volume indicates greater bullish sentiment and vice versa.
Buying Volume = volume when close price is higher than open price.
Selling Volume = volume when close price is lower than open price.
Volume Balance = Cumulative Buying Volume − Cumulative Selling Volume
Volume Balance is then expressed as a percentage by dividing by total volume
This indicator is composed of three different lengths of the same indicator. Short, Mid, and Long term representations of Volume Equilibrium. The difference between the mid and long term are highlighted so to make it easy to see where volume is going relative to a longer time frame.
HOW TO USE:
At 0 ---> Equilibrium ---> Equal Buying/Selling Volume
Above 0 ---> More buying Volume
Below 0 ---> More selling Volume
Using theory, it is assumed that the price is at a 'fair-value' when the buying/selling volume is at 0. This is of course relative to the respective timeframe of your choosing. More weight given to larger timeframes.
Volume Histogram
It is a basic volume chart that represents the total volume though has highlighted bars so to indicate buying(green) and selling(red) volume. This allows one to see what the indicator is based off of.
Open-Close Oscillator(not needed)
Calculates the average open-close for a selected timeframe and then provides the current closing price relative to that average open-close. Very simply put, values below 0 indicate bearish and values above 0 generally indicate bullishness. This indicator is for a quick reference of price action relative to volume.
Another way to use this indicator, though unique, is to analyze the separate open-close lines themselves. Using the open-close bands, bullishness is defined as increasing closing prices and bearish as decreasing closing prices. So, in regard to this indicator, bear sessions can be indicated by the opening line being below the closing line and bull sessions as the opening line being above. Use the 'flip' of these lines to your advantage, they are very helpful at capturing long continuous sentiment.
This indicator is composed of great information though I still think it best to use many different indicators to help you with your trades.
NOTE: Be aware of what we are trying to analyze, Volume. This means that one should also look out for divergences to capture early indications of reversals. This indicator can be leveraged greatly.
Volume Spike IndicatorThe Volume Spike Indicator is designed to identify significant volume spikes in the market. This tool helps traders recognize unusual trading activity, which may indicate potential reversals, breakouts, or increased volatility. The indicator uses a simple moving average (SMA) of volume over a specified period and highlights bars where the current volume exceeds a multiple of this average.
Features:
Volume SMA Calculation:
The indicator calculates the SMA of volume over a customizable period (default: 20 bars).
Spike Multiplier:
A threshold multiplier (default: 4) determines what qualifies as a "spike."
Spikes occur when the current volume is greater than the SMA multiplied by this threshold.
Visual Alerts:
If a spike is detected, a red cross ( Cross ) and X-shape ( X-Cross ) are plotted above the corresponding bar for easy identification.
How to Use:
Spot High-Activity Areas:
Use this indicator to find points of unusually high trading activity, which can signify key levels or moments of interest in the market.
Adjust Settings for Sensitivity:
Length : Change the SMA period to match your trading timeframe.
Spike Multiplier : Lower values detect smaller spikes; higher values focus on extreme events.
Combine with Other Indicators:
This tool works best when combined with price action analysis, support/resistance levels, or trend indicators to confirm trading signals.
Customization Options:
Length: Number of bars for SMA calculation (default: 20).
Spike Multiplier: Threshold for defining volume spikes (default: 4).
This indicator is suitable for traders looking to enhance their analysis by identifying abnormal market activity.
Volume ComparisonThis indicator is designed to visually compare the current day's trading volume against the average trading volumes of 3, 5, and 10 days. It highlights certain conditions based on the comparison and provides alerts.
Inputs for Customization:
1. The user can toggle visibility for the 3-day, 5-day, and 10-day average volumes using boolean inputs.
2. Average Volume Calculation:
This indicator calculate simple moving averages of the trading volume for 3, 5, and 10-day periods.
3.Conditions:
The indicator checks whether the current day's volume is greater than the respective moving averages for 3, 5, and 10 days.
4. Background Color for Visual Indicators:
If the current day's volume is greater than any of the averages and the corresponding option is enabled, the background color is adjusted:
* Green if the volume is greater than the 3-day average.
* Blue if the volume is greater than the 5-day average.
* Red if the volume is greater than the 10-day average.
5. Plotting the Averages:
The moving averages are plotted on the chart, with different colors for each (green for 3-day, blue for 5-day, and red for 10-day).
6. This indicator can be used to help visually track whether today's volume is above the moving average, which can signal increased market activity or interest.
Trading TimesThis script is based on the 9 and 20 EMA Strategy and combines Fibonacci Levels for added confluence.
When the price retests after breaking the EMAs, we take the trade in the same direction. That is on breakup, we take a long and on a breakdown we take a short.
VWAP can be enabled from settings for more data. institutions use it to average out their trades for both buy and sell orders.
Dominant Smoothed Volume Pro Smoothed Volume Pro provides a useful tool designed to provide traders with a deeper understanding of market dynamics by analyzing buy and sell volume across multiple timeframes. Unlike traditional volume indicators, this script normalizes volume data from lower timeframes to align with the current chart's timeframe, providing an apples-to-apples comparison. The result is a visual histogram representation of the dominant buy or sell activity, smoothed over 5 different periods to reflect momentum shifts and enhance clarity.
Core Methodology
1. Multi-Timeframe Volume Analysis
This indicator leverages data from five different lower timeframes, each chosen dynamically based on the current chart's timeframe. By aggregating and normalizing these granular data points, the indicator captures subtle shifts in buy and sell volume that might otherwise go unnoticed. This multi-timeframe approach allows for a more detailed and accurate representation of market activity.
2. Data Normalization
Normalization is a critical component of this indicator. It ensures that volume data from lower timeframes is scaled appropriately to match the total volume of the current chart's timeframe. This step eliminates discrepancies caused by varying time intervals, providing a more meaningful comparison of volume trends across different periods.
3. Smoothing for Momentum Representation
The indicator employs five customizable smoothing factors to smooth out noisy volume data.
Each smoothing factor is distinctly color-coded in the histogram and table for intuitive analysis, helping traders quickly identify prevailing trends.
Features and Benefits
➖Customizable Smoothing Factors: Choose from five different smoothing factors, each with its unique settings for line styles, colors, and extensions.
➖Normalized Buy and Sell Volume: Displays normalized buy and sell volumes as a percentage of total activity, aiding in quick decision-making.
➖Visual Cues: Color-coded columns and labels help identify dominant trends at a glance, with high-opacity fills for visual clarity.
➖Dynamic Table: A built-in table summarizes smoothed volume data for each smoothing factor, offering a quick overview of bullish and bearish percentages.
➖Momentum Signals: Detect significant shifts in volume momentum with visually distinct alerts for high relative volumes, including special symbols like "⚡" and "🔥."
Practical Applications
➖Identifying Market Sentiment: Quickly determine whether the market is dominated by buyers or sellers at any given moment.
➖Spotting Reversals: Use momentum shifts in smoothed volume to anticipate potential trend reversals.
➖Enhancing Entry and Exit Points: Combine this indicator with other technical tools to refine entry and exit points in your trading strategy.
Why This Indicator Stands Out
Many existing volume indicators focus solely on raw or single-timeframe data, which can be misleading or incomplete. This indicator sets itself apart by:
Utilizing multi-timeframe data to provide a holistic view of market activity.
Applying robust normalization techniques to ensure data consistency.
Offering advanced smoothing options to emphasize actionable momentum signals.
This unique combination of features makes it an indispensable tool for traders seeking to enhance their market analysis and decision-making process.
As always, by combining the Smoothed Volume Pro with other tools, traders ensure that they are not relying on a single indicator. This layered approach can reduce the likelihood of false signals and improve overall trading accuracy.
Here's an additional visual representation using the plot fills:
mr.crypto731Description:
📊 Enhanced MACD with Strong Buy/Sell Signals 🚀
This script is designed to enhance the standard MACD indicator by adding clear, strong buy and sell signals. It includes:
MACD Line: A fast-moving average that reacts quickly to price changes.
Signal Line: A slower-moving average that smooths out price fluctuations.
MACD Histogram: The difference between the MACD Line and Signal Line, helping to identify trend strength and direction.
Key Features:
Strong Buy/Sell Signals: Uses crossovers of the MACD Line and Signal Line to generate strong buy/sell signals.
Color-Coded Background: Provides visual cues with background colors to highlight strong signals.
User-Friendly Interface: Customizable settings for MACD Fast Length, Slow Length, and Signal Smoothing.
Candle VolumeThis indicator gives gives candle volume represented in X.Y format for simplicity.
100% = 1.0
20% = 0.2
Anything 10X is represented by an arrow up or down based on candle price delta open to close.
By default, a 500 candle lookback of volume is used excluding exteem outliers of 50.
You can adjust these in settings.
Volume Delta Filtered Overlay v1.1 by RamtraderbookVolume Delta Filtered Overlay v1.1 by Ramtraderbook
This indicator visually displays the volume delta directly on the price chart using colored circles. Its main goal is to highlight significant changes in the volume delta, categorizing them by direction and magnitude.
How It Works
1. Volume Delta Calculation
- Measures the difference between buying and selling volume on a lower time frame.
2. Threshold Filter
- Only displays data if the delta exceeds a minimum threshold set by the user.
3. Colors by Direction
- Bullish color: If the delta is positive (more buying).
- Bearish color: If the delta is negative (more selling).
4. Circle Placement
- Circles are placed above the candle for a positive delta and below the candle for a negative delta.
Customizable Inputs
- Delta Threshold: Defines the minimum delta value that will be plotted.
- Customizable Colors: Allows you to set different colors for positive and negative delta circles.
- **Lower Time Frame**: Scans data on a lower time frame for greater accuracy.
Important Note on Data
TradingView does not handle market depth data such as order book information. The volume delta calculation is an approximation based on the asset’s volume and price behavior. This means it does not precisely reflect the actual flow of buy or sell orders in the market, but rather an estimate derived from available data.
Conclusion
The **Volume Delta Filtered Overlay v1.1 by Ramtraderbook** is a visual tool that helps quickly identify significant buy or sell volume movements, making it ideal for strategies that rely on order flow analysis. However, it is recommended to combine it with other tools for a more comprehensive analysis.
Volume Delta Filtered v1.1 by RamtraderbookIndicator Explanation: Volume Delta_RTB (Filtered)
General Description
The Volume Delta_RTB (Filtered) indicator is designed to analyze the volume delta of a financial asset and highlight only significant changes based on a configured threshold. This indicator is useful for detecting moments when buying volume exceeds selling volume (or vice versa), providing a clear view of market pressure.
What is Volume Delta?
Volume delta measures the difference between buying and selling volume over a given time period. A positive delta indicates that buying prevails over selling, while a negative delta indicates the opposite.
Indicator Inputs
The indicator has several customizable parameters to suit the user’s needs:
1. Volume Delta Threshold
- Allows you to set a minimum volume delta value.
- Only indicator values that exceed this absolute delta threshold will be displayed.
- Default value: 100,000.
2. Use of a Lower Time Frame
- Option to analyze data from a lower time frame than the main chart.
Operating Logic
1. Selection of the Lower Time Frame
- The indicator scans data from a lower time frame to accurately calculate the volume delta.
- By default, it automatically selects an appropriate lower time frame, though it can be set manually.
2. Calculation of Volume Delta
- Using the `ta.requestVolumeDelta` function, the indicator calculates:
- Volume delta at the start of the period (`openVolume`).
- Maximum delta (`maxVolume`).
- Minimum delta (`minVolume`).
- Last recorded delta (`lastVolume`).
3. Filtering Values
- If the absolute value of `lastVolume` (the last volume delta) is below the configured threshold (`deltaThreshold`), the data will not be displayed on the chart.
- This allows the indicator to highlight only significant movements, avoiding unnecessary noise.
4. Visualization
- Volume delta is represented by candles to facilitate interpretation:
- Yellow candles for positive delta (buying prevails).
- Pink candles for negative delta (selling prevails).
- A horizontal line at `0` serves as a reference.
- Colors can be configured as needed.
5. Data Validation
- If the data provider does not provide volume information for the asset, the indicator will display an error message.
Indicator Advantages
- Efficient Filtering: Focus on the most relevant movements in terms of volume, ignoring small or insignificant values.
- Adaptable: Offers customization options for both the delta threshold and the time frame.
- Clear Visualization: Colored candles make it easier to spot dominant buying or selling trends.
NOTE:
- Estimated Delta Data: Since TradingView does not have access to market depth data or an exact breakdown of buying and selling volume, the delta calculations are approximations based on price and volume behavior.
- Data Provider Dependency: Some assets or instruments may not have volume information available, limiting the indicator’s use.
FTD & DD AnalyzerFTD & DD Analyzer
A comprehensive tool for identifying Follow-Through Days (FTDs) and Distribution Days (DDs) to analyze market conditions and potential trend changes, based on William J. O'Neil's proven methodology.
About the Methodology
This indicator implements the market analysis techniques developed by William J. O'Neil, founder of Investor's Business Daily and author of "How to Make Money in Stocks." O'Neil's research, spanning market data back to the 1880s, has successfully identified major market turns throughout history. His FTD and DD concepts remain crucial tools for institutional investors and serious traders.
Overview
This indicator helps traders identify two critical market conditions:
Distribution Days (DDs) - days of institutional selling pressure
Follow-Through Days (FTDs) - confirmation of potential market bottoms and new uptrends
The combination of these signals provides valuable insight into market health and potential trend changes.
Key Features
Distribution Day detection with customizable criteria
Follow-Through Day identification based on classical methodology
Market bottom detection using EMA analysis
Dynamic warning system for accumulated Distribution Days
Visual alerts with customizable labels
Advanced debug mode for detailed analysis
Flexible display options for different trading styles
Distribution Days Analysis
What is a Distribution Day?
A Distribution Day occurs when:
The price closes lower by a specified percentage (default -0.2%)
Volume is higher than the previous day
DD Settings
Price Threshold: Minimum price decline to qualify (default -0.2%)
Lookback Period: Number of days to analyze for DD accumulation (default 25)
Warning Levels:
First warning at 4 DDs
Severe warning (SOS - Sign of Strength) at 6 DDs
Display Options:
Show/hide DD count
Show/hide DD labels
Choose between showing all DDs or only within lookback period
Follow-Through Day Detection
What is a Follow-Through Day?
Following O'Neil's research, a Follow-Through Day confirms a potential market bottom when:
Occurs between day 4 and 13 after a bottom formation (optimal: days 4-7)
Shows significant price gain (default 1.5%)
Accompanied by higher volume than the previous day
Key Statistics:
FTDs followed by distribution on days 1-2 fail 95% of the time
Distribution on day 3 leads to 70% failure rate
Later distribution (days 4-5) shows only 30% failure rate
FTD Settings
Minimum Price Gain: Required percentage gain (default 1.5%)
Valid Window: Day 4 to Day 13 after bottom
Quality Rating:
🚀 for FTDs occurring within 7 days (historically most reliable)
⭐ for later FTDs
Market Bottom Detection
The indicator uses a sophisticated approach to identify potential market bottoms:
EMA Analysis:
Tracks 8 and 21-period EMAs
Monitors EMA alignment and momentum
Customizable tolerance levels
Price Action:
Looks for lower lows within specified lookback period
Confirms bottom with subsequent price action
Reset mechanism to prevent false signals
Visual Indicators
Label Types
📉 Distribution Days
⬇️ Market Bottoms
🚀/⭐ Follow-Through Days
⚠️ DD Warning Levels
Customization Options
Label size: Tiny, Small, Normal, Large
Label style: Default, Arrows, Triangles
Background colors for different signals
Dynamic positioning using ATR multiplier
Practical Usage
1. Monitor DD Accumulation:
Watch for increasing number of Distribution Days
Pay attention to warning levels (4 and 6 DDs)
Consider reducing exposure when warnings appear
2. Bottom Recognition:
Look for potential bottom formations
Monitor EMA alignment and price action
Wait for confirmation signals
3. FTD Confirmation:
Track days after potential bottom
Watch for strong price/volume action in valid window
Note FTD quality rating for additional context
Alert System
Built-in alerts for:
New Distribution Days
Follow-Through Day signals
High DD accumulation warnings
Tips for Best Results
Use multiple timeframes for confirmation
Combine with other market health indicators
Pay attention to sector rotation and market leadership
Monitor volume patterns for confirmation
Consider market context and external factors
Technical Notes
The indicator uses advanced array handling for DD tracking
Dynamic calculations ensure accurate signal generation
Debug mode available for detailed analysis
Optimized for real-time and historical analysis
Additional Information
Compatible with all markets and timeframes
Best suited for daily charts
Regular updates and maintenance
Based on O'Neil's time-tested market analysis principles
Conclusion
The FTD & DD Analyzer provides a systematic approach to market analysis, combining O'Neil's proven methodologies with modern technical analysis. It helps traders identify potential market turns while monitoring institutional participation through volume analysis.
Remember that no indicator is perfect - always use in conjunction with other analysis tools and proper risk management.
Scalping long-shortThe Scalping long-short indicator is a comprehensive system for analyzing candle patterns and trading volume, designed for use in a scalping strategy. The main purpose of the indicator is to identify the key points of changing market sentiment and provide the trader with accurate signals for entering a trade.
The main components of the indicator:
1. Candle Pattern Analysis:
The indicator analyzes four main candle patterns:
-A Bullish Hammer is a candle with a small body and a long lower tail, which indicates the possible completion of a downward movement and the beginning of an uptrend.
-Bearish Hanging Man is a candle similar to a bullish hammer, but it appears after an upward movement, signaling the possible beginning of a downtrend.
-Bullish Engulfing is a candle with a large body that completely covers the body of the previous candle, showing strong buyer interest.
-Bearish Engulfing is the reverse situation, when a large bearish candle absorbs the previous bullish candle, indicating the predominance of sellers.
-Doji is a candle with almost identical opening and closing prices, indicating market indecision.
For each of these patterns, the indicator sets certain threshold values that the user can adjust to their preferences and features of the trading instrument.
2. Volume analysis:
The volume is an important confirmation of the strength of the signal. The indicator compares the current volume with the average value for the user-selected period (length parameter) multiplied by the volumeMultiplier coefficient. If the current volume exceeds this indicator, the signal is considered confirmed.
3. Visual indication:
Graphical elements corresponding to each type of signal are displayed on the price chart.:
-The green triangle down is a buy signal (bullish hammer or bullish takeover).
-The red triangle up is a sell signal (bearish hanging or bearish engulfing).
-The yellow diamond is a neutral state (doji).
These visual cues help you quickly assess the current market situation without having to analyze each candle manually in depth.
4. Alerts:
The indicator supports setting alerts that can be sent via the TradingView platform or other supporting systems. This allows the trader to receive notifications about the occurrence of new signals even outside the workplace.
Settings:
The user can change the following settings:
-Length is the period for calculating the average volume.
-Multiplier is a multiplier for the thresholds of candle patterns.
-HammerThreshold, HangingManThreshold, EngulfingThreshold, DojiThreshold are Thresholds for recognizing specific candlestick patterns.
-VolumeMultiplier is a coefficient for comparing the current volume with the average value.
These parameters allow you to adapt the indicator to various trading instruments and time intervals, making it a universal tool for a wide range of traders.
Conclusion:
The Scalping long-short indicator combines powerful analytical tools to identify key points in the market, providing the trader with clear and timely signals for making trading decisions. Its flexibility and fine-tuning capability make it useful for both beginners and experienced market participants.
VPSA-VTDDear Sir/Madam,
I am pleased to present the next iteration of my indicator concept, which, in my opinion, serves as a highly useful tool for analyzing markets using the Volume Spread Analysis (VSA) method or the Wyckoff methodology.
The VPSA (Volume-Price Spread Analysis), the latest version in the family of scripts I’ve developed, appears to perform its task effectively. The combination of visualizing normalized data alongside their significance, achieved through the application of Z-Score standardization, proved to be a sound solution. Therefore, I decided to take it a step further and expand my project with a complementary approach to the existing one.
Theory
At the outset, I want to acknowledge that I’m aware of the existence of other probabilistic models used in financial markets, which may describe these phenomena more accurately. However, in line with Occam's Razor, I aimed to maintain simplicity in the analysis and interpretation of the concepts below. For this reason, I focused on describing the data using the Gaussian distribution.
The data I read from the chart — primarily the closing price, the high-low price difference (spread), and volume — exhibit cyclical patterns. These cycles are described by Wyckoff's methodology, while VSA complements and presents them from a different perspective. I will refrain from explaining these methods in depth due to their complexity and broad scope. What matters is that within these cycles, various events occur, described by candles or bars in distinct ways, characterized by different spreads and volumes. When observing the chart, I notice periods of lower volatility, often accompanied by lower volumes, as well as periods of high volatility and significant volumes. It’s important to find harmony within this apparent chaos. I think that chart interpretation cannot happen without considering the broader context, but the more variables I include in the analytical process, the more challenges arise. For instance, how can I determine if something is large (wide) or small (narrow)? For elements like volume or spread, my script provides a partial answer to this question. Now, let’s get to the point.
Technical Overview
The first technique I applied is Min-Max Normalization. With its help, the script adjusts volume and spread values to a range between 0 and 1. This allows for a comparable bar chart, where a wide bar represents volume, and a narrow one represents spread. Without normalization, visually comparing values that differ by several orders of magnitude would be inconvenient. If the indicator shows that one bar has a unit spread value while another has half that value, it means the first bar is twice as large. The ratio is preserved.
The second technique I used is Z-Score Standardization. This concept is based on the normal distribution, characterized by variables such as the mean and standard deviation, which measures data dispersion around the mean. The Z-Score indicates how many standard deviations a given value deviates from the population mean. The higher the Z-Score, the more the examined object deviates from the mean. If an object has a Z-Score of 3, it falls within 0.1% of the population, making it a rare occurrence or even an anomaly. In the context of chart analysis, such strong deviations are events like climaxes, which often signal the end of a trend, though not always. In my script, I assigned specific colors to frequently occurring Z-Score values:
Below 1 – Blue
Above 1 – Green
Above 2 – Red
Above 3 – Fuchsia
These colors are applied to both spread and volume, allowing for quick visual interpretation of data.
Volume Trend Detector (VTD)
The above forms the foundation of VPSA. However, I have extended the script with a Volume Trend Detector (VTD). The idea is that when I consider market structure - by market structure, I mean the overall chart, support and resistance levels, candles, and patterns typical of spread and volume analysis as well as Wyckoff patterns - I look for price ranges where there is a lack of supply, demand, or clues left behind by Smart Money or the market's enigmatic identity known as the Composite Man. This is essential because, as these clues and behaviors of market participants — expressed through the chart’s dynamics - reflect the actions, decisions, and emotions of all players. These behaviors can help interpret the bull-bear battle and estimate the probability of their next moves, which is one of the key factors for a trader relying on technical analysis to make a trade decision.
I enhanced the script with a Volume Trend Detector, which operates in two modes:
Step-by-Step Logic
The detector identifies expected volume dynamics. For instance, when looking for signs of a lack of bullish interest, I focus on setups with decreasing volatility and volume, particularly for bullish candles. These setups are referred to as No Demand patterns, according to Tom Williams' methodology.
Simple Moving Average (SMA)
The detector can also operate based on a simple moving average, helping to identify systematic trends in declining volume, indicating potential imbalances in market forces.
I’ve designed the program to allow the selection of candle types and volume characteristics to which the script will pay particular attention and notify me of specific market conditions.
Advantages and Disadvantages
Advantages:
Unified visualization of normalized spread and volume, saving time and improving efficiency.
The use of Z-Score as a consistent and repeatable relative mechanism for marking examined values.
The use of colors in visualization as a reference to Z-Score values.
The possibility to set up a continuous alert system that monitors the market in real time.
The use of EMA (Exponential Moving Average) as a moving average for Z-Score.
The goal of these features is to save my time, which is the only truly invaluable resource.
Disadvantages:
The assumption that the data follows a normal distribution, which may lead to inaccurate interpretations.
A fixed analysis period, which may not be perfectly suited to changing market conditions.
The use of EMA as a moving average for Z-Score, listed both as an advantage and a disadvantage depending on market context.
I have included comments within the code to explain the logic behind each part. For those who seek detailed mathematical formulas, I invite you to explore the code itself.
Defining Program Parameters:
Numerical Conditions:
VPSA Period for Analysis – The number of candles analyzed.
Normalized Spread Alert Threshold – The expected normalized spread value; defines how large or small the spread should be, with a range of 0-1.00.
Normalized Volume Alert Threshold – The expected normalized volume value; defines how large or small the volume should be, with a range of 0-1.00.
Spread Z-SCORE Alert Threshold – The Z-SCORE value for the spread; determines how much the spread deviates from the average, with a range of 0-4 (a higher value can be entered, but from a logical standpoint, exceeding 4 is unnecessary).
Volume Z-SCORE Alert Threshold – The Z-SCORE value for volume; determines how much the volume deviates from the average, with a range of 0-4 (the same logical note as above applies).
Logical Conditions:
Logical conditions describe whether the expected value should be less than or equal to or greater than or equal to the numerical condition.
All four parameters accept two possibilities and are analogous to the numerical conditions.
Volume Trend Detector:
Volume Trend Detector Period for Analysis – The analysis period, indicating the number of candles examined.
Method of Trend Determination – The method used to determine the trend. Possible values: Step by Step or SMA.
Trend Direction – The expected trend direction. Possible values: Upward or Downward.
Candle Type – The type of candle taken into account. Possible values: Bullish, Bearish, or Any.
The last available setting is the option to enable a joint alert for VPSA and VTD.
When enabled, VPSA will trigger on the last closed candle, regardless of the VTD analysis period.
Example Use Cases (Labels Visible in the Script Window Indicate Triggered Alerts):
The provided labels in the chart window mark where specific conditions were met and alerts were triggered.
Summary and Reflections
The program I present is a strong tool in the ongoing "game" with the Composite Man.
However, it requires familiarity and understanding of the underlying methodologies to fully utilize its potential.
Of course, like any technical analysis tool, it is not without flaws. There is no indicator that serves as a perfect Grail, accurately signaling Buy or Sell in every case.
I would like to thank those who have read through my thoughts to the end and are willing to take a closer look at my work by using this script.
If you encounter any errors or have suggestions for improvement, please feel free to contact me.
I wish you good health and accurately interpreted market structures, leading to successful trades!
CatTheTrader
Binance Perp Premium/DiscountThis TradingView Pine Script indicator calculates and displays the premium or discount percentage between a cryptocurrency's spot price and its corresponding perpetual futures (perp) price on Binance. It automatically detects whether the current chart symbol represents a spot or perp market by checking for the ".P" suffix. The script then retrieves the closing prices for both the spot and perp symbols using the request.security function. If valid data is available for both markets, it computes the premium or discount as a percentage and visualizes this difference as a histogram below the main chart. Green bars indicate a premium (perp price above spot), while red bars signify a discount (perp price below spot). The indicator includes error handling to display 'n/a' when data for the required symbols is unavailable, ensuring robustness across various chart applications.
