[astropark] Volume Analyzer

Mar 19, 2021

Dear Followers,

today another awesome Analysis Tool, that you can use for day scalping: Volume Analyzer!

This indicator

• works on every market, pair and timeframe
• lets you see analysis of a different timeframes using the resolution parameter
  
• has an optional trend colored background (I suggest to disable it if you use a different resolution)
  
• integrates a tape profit strategy based on RSI (you can config it and enable/disable it)
  
• lets you setup alarms on bull/bear signal as well as on TP RSI-based signals
  

I prefer to use this indicator in my day trading on low timeframes, like 5m - 15m - 1h, as you can have access to a more detailed volume information, but it works on high timeframes too as you can see in examples at the bottom of the description.

I truly think that Volume says a lot about future price action, as stated in my Cumulative Volume Delta (CVD) indicator, which you can find here below:

In this indicator, I'm much more interested in the bullish or bearish effect of volume generated by traders and following price action.
Be sure to understand that at current status this is not a complete automated strategy, but an analysis tool which aims to give you a positive bias, a profitable hedge in your trading journey.
As I always say, all tools are great if you use them correctly: this is not the "Holy Grail", so always use proper money and risk management strategies.

This indicator quite often calls bottoms and tops, most of the times it announces a coming reversals, sometimes it fails too of course.
Check this screenshot to have a clear idea of what I'm talking about:


You are supposed to discard signals of the same type that comes later and at a worse price (related to the trend) or you can use to re-fill your still-open position, using it as a re-entry.
You are supposed to act at first signals and average up/down if price goes against you when a new bear/bull signal appears at a better price.

Here it is another element you must consider: price action can deny a reversal stated by volume analysis.


In these cases, you must apply a stop loss in your trade and reverse your position. Don't average up/down your entry.
The reason in this screenshot below:


As you can see, the local downtrend was broken, as it was a simple pullback, previous bull trend was restored and price went up a lot!
The indicator here detected bears rejecting the run-up as much violently as they could, but that was a pullback, nothing more than that: main bull trend was still intact.


Another important advice: don't be greedy, always remember to take profits! Avoid turning a winning trade into a losing one, which is a common mistake traders do.
That's why I decided to include an RSI based Take Profit algorithm inside:

• when background is colored by green (and you can't see any bull signal), then you are in over bought region: start taking profits on you buy/long position or close it or set a trailing stop or a stop loss in profit!
  
• when background is colored by red (and you can't see any bear signal), then you are in over sold region: start taking profits on you sell/short position or close it or set a trailing stop or a stop loss in profit!
  
• when price is in a big overbought or oversold region, then you can see a "ob" label or a "os" label respectively
  
• if you are in a bullish trend (you can see it from the trend colored green background as last signal was a "bull" one), "ob" becomes a clear "tp" - Take Profit advice
  
• if you are in a bearish trend (you can see it from the trend colored red background as last signal was a "bear" one), "os" becomes a clear "tp" - Take Profit advice
  

Here some examples how you can use the signals produced by the indicator in order to be a successful trader.
I circled with pink signals you as supposed to take, then with a "$" pink backgrounded region where you are supposed to take profits, I finally put an X on failing signals, where you would theoretically have been stopped-out.

GBPUSD, 15m


ETHUSD, 1h


TSLA, 5m


BTCUSD, 15m


XAGUSD, 1h


EURUSD, 15m


SPX500, 1h


ETHUSD, 1D


ETHBTC, 6h




This is a premium indicator, so send me a private message in order to get access to this script.