After reading an article on how to trade volume I felt that I needed some kind of indicator using price action and volume together.
More precisely I tried to build two indicators. Bear in mind this indactor is very simple because it only evaluates each bar with its previous bar and an average.
Nr.1 Weak/fake push: Price suddenly goes up/down a lot more but without much volume being traded -> sign of a fake move or low interest Nr 2 Price action resistance: After an up or down move price suddenly stops moving but high volumes are being traded. This means high resistance from sellers in a rally or buyers in a decline.
This is very simple and as you can see it is often not a clear signal. I will try to improve it further. If a fake move bar (purple) has a close near its new high we don't know if the fake push will continue. As you can see on the chart. some reversal signs come a little to early.
You can re-color labels and turn them off optionally.
This is built for educational purposes only. I hope you find it useful.
Yes I can see it tend to give reversal signals too early, but overall I'm sure the concept in this script are going to be very helpful
for use in conjunction with ribbon type indicators to verify the ribbon reversals in seeking entry points.
My current favorable timeframe for use in conjunction with ma ribbons would be the 15m.
30 mins and the hour timeframe are only giving reversal signals that are somewhat inaccurate
Looking forward for future updates
lookjunhomerun
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@zhaffrano, hi what is your indicator name , thanks
zhaffrano
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@lookjunhomerun the other Indicator is "Hull Suite Strategy" (A converted version of "Hull Suite" by InSilico)
Wealth_Guide
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Interesting. I'm testing it - are you planning on building it further?
Hookster
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@aashish2137, Thanks . I would like to get rid of some of the false signal. I like the reversal signal best. But I too busy atm. Feedback welcome if you find it better at some charts. Currently is is just analysing previous one or two bars... a better tool would maybe take a longer view or some kind of average.