OPEN-SOURCE SCRIPT
True Volume Indicator
Updated
True Volume Indicator (True Vol)
The True Volume Indicator (True Vol) offers a detailed breakdown of buy and sell volumes within each bar, helping traders better understand market dynamics. Unlike standard volume bars that only display net volume with color changes, this indicator estimates the actual buy and sell volumes and provides additional insights by incorporating a Volume Moving Average (Volume MA).
Key Features:
## Use Cases:
This indicator gives traders a more nuanced view of volume, providing valuable insights to enhance decision-making.
The True Volume Indicator (True Vol) offers a detailed breakdown of buy and sell volumes within each bar, helping traders better understand market dynamics. Unlike standard volume bars that only display net volume with color changes, this indicator estimates the actual buy and sell volumes and provides additional insights by incorporating a Volume Moving Average (Volume MA).
Key Features:
- Buy and Sell Volume Estimation
- Separates the total volume into buy volume (green bars) and sell volume (red bars) based on intra-bar price movement.
- Helps traders identify the true buying and selling pressure within each bar. - Volume Moving Average (MA)
- A blue line representing the moving average of volume over a customizable period (default is 20 bars).
- Useful for spotting trends and understanding volume anomalies. - Detailed Volume Labels
- Displays exact buy and sell volume values directly on the chart for quick analysis. - Customizable MA Length
- Easily adjust the length of the Volume MA to fit your trading strategy.
## Use Cases:
- Spot when buying pressure dominates even if the bar closes red, or vice versa.
- Confirm breakouts or reversals by analyzing buy/sell volume distribution.
- Use the Volume MA to see if volume is increasing or decreasing over time.
This indicator gives traders a more nuanced view of volume, providing valuable insights to enhance decision-making.
Release Notes
Support as volume.Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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Disclaimer
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