OPEN-SOURCE SCRIPT
Bullish/Bearish Volume
Updated
The "Bullish/Bearish Volume" indicator helps traders identify discrepancies between price movement and trading volumes. Sometimes the price trends in one direction while trading volumes indicate opposing intentions among market participants. This indicator aims to identify such divergences, assisting traders in making more informed and balanced trading decisions.
Key features:
1. Directional Volume Differences: The indicator calculates volumes by separating them into two main categories: buying and selling. When the closing price is higher than the opening price, buying volume is shown in green, while selling volume is shown in red when the closing price is lower than the opening price. This accurate classification helps identify which volume type predominates in the current interval.
2. Histograms by Fixed Time Intervals: Collecting data from a fixed time interval (1 minute), the indicator analyzes and sums up buying and selling volumes regardless of the selected chart timeframe. This provides a more detailed market view, allowing traders to accurately gauge sentiment within any chosen timeframe.
3. Total Volume: The indicator aggregates buying and selling volumes, representing total trading activity in gray transparent bars. This gives traders a clear visual representation of overall volume activity in the market for a selected period.
4. Volume Delta and its Moving Average: The volume delta (the difference between buying and selling volumes) is highlighted in blue, allowing for monitoring shifts in the balance of buying and selling power. Additionally, the indicator includes a moving average of the delta, shown as a blue line, to smooth out short-term fluctuations and help traders easily identify long-term trends in volume shifts.
5. Volume Volatility: A histogram representing volume volatility offers insight into trading activity variability, uncovering abnormal spikes or lulls in market dynamics.
Bullish/Bearish Volume is a powerful tool that can break down market flows into understandable signals, enabling traders to better recognize imbalances and make informed decisions.
Key features:
1. Directional Volume Differences: The indicator calculates volumes by separating them into two main categories: buying and selling. When the closing price is higher than the opening price, buying volume is shown in green, while selling volume is shown in red when the closing price is lower than the opening price. This accurate classification helps identify which volume type predominates in the current interval.
2. Histograms by Fixed Time Intervals: Collecting data from a fixed time interval (1 minute), the indicator analyzes and sums up buying and selling volumes regardless of the selected chart timeframe. This provides a more detailed market view, allowing traders to accurately gauge sentiment within any chosen timeframe.
3. Total Volume: The indicator aggregates buying and selling volumes, representing total trading activity in gray transparent bars. This gives traders a clear visual representation of overall volume activity in the market for a selected period.
4. Volume Delta and its Moving Average: The volume delta (the difference between buying and selling volumes) is highlighted in blue, allowing for monitoring shifts in the balance of buying and selling power. Additionally, the indicator includes a moving average of the delta, shown as a blue line, to smooth out short-term fluctuations and help traders easily identify long-term trends in volume shifts.
5. Volume Volatility: A histogram representing volume volatility offers insight into trading activity variability, uncovering abnormal spikes or lulls in market dynamics.
Bullish/Bearish Volume is a powerful tool that can break down market flows into understandable signals, enabling traders to better recognize imbalances and make informed decisions.
Release Notes
DescriptionThe Bullish/Bearish Volume (BBV) indicator is designed to analyze buying and selling volumes based on minute-by-minute data, regardless of the selected timeframe. Sometimes the price trends in one direction, while trading volumes indicate opposing intentions among market participants. This indicator aims to identify such divergences, assisting traders in making more informed and balanced trading decisions.
Features
- • Calculates Buying and Selling Volumes: Uses minute-by-minute data for accurate computation of buying volumes (positive volume) and selling volumes (negative volume).
- • Volume Aggregation: Sums up buying and selling volumes for the current time interval.
- • Displays Volume Delta: The difference between buying and selling volumes to identify trends.
- • Moving Average of Delta: Smooths out volume fluctuations for a better understanding of trends.
- • Normalized Volume Volatility: Logarithmic normalization of volume volatility to identify anomalies in trading activity.
- • Volume Mismatch Indicators: Displays arrows on the chart when volumes and prices show significant discrepancies.
Settings
- • Moving Average Length (Delta): Length of the moving average for volume delta (default: 14).
- • Volatility Period (Normalization): Period for calculating volume volatility (default: 3).
- • Volume Mismatch Percentage: Volume mismatch percentage for displaying indicators (default: 10%).
How to Use
- • Volume Analysis: The indicator displays green bars for buying volumes and red bars for selling volumes. Gray bars show the total trading volume.
- • Volume Delta: The blue area shows the difference between buying and selling volumes (volume delta). The moving average of delta helps to smooth out fluctuations.
- • Normalized Volatility: Yellow bars display normalized volume volatility, helping to identify periods of high activity.
- • Mismatch Indicators: Red arrows above and green arrows below indicate significant discrepancies between volumes and price movements, which may signal potential trend reversals.
Conclusion
The Bullish/Bearish Volume (BBV) indicator is a powerful tool for analyzing trading volumes and identifying hidden trends. It provides valuable information to traders by breaking down market flows into understandable signals, enabling them to better recognize imbalances and make informed decisions.
Release Notes
Bullish/Bearish Volume (BBV) - Version 3Open-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
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.