OPEN-SOURCE SCRIPT
Volume DMAO [DCAUT]
█ Volume DMAO Indicator [DCAUT]
📊 OVERVIEW
The Volume DMAO (Dual Moving Average Oscillator) applies PPO-style calculation to volume data rather than price. It measures the percentage difference between fast and slow moving averages of volume, providing insights into volume momentum and market participation trends.
🎯 CONCEPTS
Signal Interpretation
Primary Applications
📋 PARAMETER SETUP
Input Parameters
📊 COLOR CODING
Histogram Colors
💡 CORE VALUE
Unlike traditional volume indicators, Volume DMAO provides normalized percentage readings that:
- Enable comparison across different timeframes and instruments
- Reveal volume momentum changes before price movements
- Identify market phases through volume participation analysis
📊 OVERVIEW
The Volume DMAO (Dual Moving Average Oscillator) applies PPO-style calculation to volume data rather than price. It measures the percentage difference between fast and slow moving averages of volume, providing insights into volume momentum and market participation trends.
🎯 CONCEPTS
Signal Interpretation
- Positive Values: Current volume above historical average (expansion phase)
- Negative Values: Current volume below historical average (contraction phase)
- Rising Trend: Volume momentum accelerating (increasing participation)
- Falling Trend: Volume momentum decelerating (decreasing participation)
Primary Applications
- Volume Confirmation: Validate price movements with volume momentum analysis
- Divergence Detection: Spot potential reversals when volume diverges from price
- Trend Strength: Assess volume participation in price trends
- Entry/Exit Signals: Time trades based on volume momentum shifts
📋 PARAMETER SETUP
Input Parameters
- Fast Length: Period for fast moving average (default: 12)
- Slow Length: Period for slow moving average (default: 50)
- MA Type: Moving average algorithm (default: EMA)
📊 COLOR CODING
Histogram Colors
- Dark Green: Positive and rising (strong volume expansion)
- Light Green: Positive and falling (weakening volume expansion)
- Light Red: Negative and rising (recovering from volume contraction)
- Dark Red: Negative and falling (strong volume contraction)
💡 CORE VALUE
Unlike traditional volume indicators, Volume DMAO provides normalized percentage readings that:
- Enable comparison across different timeframes and instruments
- Reveal volume momentum changes before price movements
- Identify market phases through volume participation analysis
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.