OPEN-SOURCE SCRIPT
VLM Spike
Feeling tired and just took a week break away from the busy and tough life. 🎊
Nothing special to mention today, just post a script I coded long time ago when I studied volume.
People always underestimate the importance of volume while drawing tons of trendlines on their charts .
A volume spike is a key to trading because it can tell us three messages, including the top, the bottom and the breakout.
Using Bollinger Band as a proxy, we can always spot two scenarios.
One ,when volume is declining below 1/2 SD of its average, price tends to move in one direction. But unusual volume above 1/2 SD of its average can reverse the original trend.
Hope u find it helpful and don't forget to follow my little account!!😄
Nothing special to mention today, just post a script I coded long time ago when I studied volume.
People always underestimate the importance of volume while drawing tons of trendlines on their charts .
A volume spike is a key to trading because it can tell us three messages, including the top, the bottom and the breakout.
Using Bollinger Band as a proxy, we can always spot two scenarios.
One ,when volume is declining below 1/2 SD of its average, price tends to move in one direction. But unusual volume above 1/2 SD of its average can reverse the original trend.
Hope u find it helpful and don't forget to follow my little account!!😄
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.
Want to use this script on a chart?
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.