karthikmarar

VPA ANALYSIS

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VPA Analysis provide the indications for various conditions as per the Volume Spread Analysis concept. The various legends are provided below

LEGEND DETAILS

UT1 - Upthrust Bar: This will be widespread Bar on high Volume closing on the low. This normally happens after an up move. Here the smart money move the price to the High and then quickly brings to the Low trapping many retail trader who rushed into in order not to miss the bullish move. This is a bearish Signal

UT2 -Upthrust Bar Confirmation: A widespread Down Bar following a Upthrust Bar. This confirms the weakness of the Upthrust Bar. Expect the stock to move down
Confirms . This is a Bearish Signal

PUT - Pseudo Upthrust: An Upthrust Bar in bar action but the volume remains average. This still indicates weakness. Indicate Possible Bearishness

PUC -Pseudo Upthrust Confirmation: widespread Bar after a pseudo–Upthrust Bar confirms the weakness of the Pseudo Upthrust Bar
Confirms Bearishness

BC - Buying Climax: A very wide Spread bar on ultra-High Volume closing at the top. Such a Bar indicates the climatic move in an uptrend. This Bar traps many retailers as the uptrend ends and reverses quickly. Confirms Bearishness

TC - Trend Change: This Indicates a possible Trend Change in an uptrend. Indicates Weakness

SEC- Sell Condition: This bar indicates confluence of some bearish signals. Possible end of Uptrend and start of Downtrend soon. Bearish Signal

UT - Upthrust Condition: When multiple bearish signals occur, the legend is printed in two lines. The Legend “UT” indicates that an upthrust condition is present. Bearish Signal

ND - No demand in uptrend: This bar indicates that there is no demand. In an uptrend this indicates weakness. Bearish Signal

ND - No Demand: This bar indicates that there is no demand. This can occur in any part of the Trend. In all place other than in an uptrend this just indicates just weakness

ED - Effort to Move Down: Widespread Bar closing down on High volume or above average volume . The smart money is pushing the prices down. Bearish Signal

EDF - Effort to Move Down Failed: Widespread / above average spread Bar closing up on High volume or above average volume appearing after ‘Effort to move down” bar.
This indicates that the Effort to move the pries down has failed. Bullish signal

SV - Stopping Volume: A high volume medium to widespread Bar closing in the upper middle part in a down trend indicates that smart money is buying. This is an indication that the down trend is likely to end soon. Indicates strength

ST1 - Strength Returning 1: Strength seen returning after a down trend. High volume adds to strength. Indicates Strength

ST2 - Strength Returning 2: Strength seen returning after a down trend. High volume adds to strength.

BYC - Buy Condition: This bar indicates confluence of some bullish signals Possible end of downtrend and start of uptrend soon. Indicates Strength

EU - Effort to Move Up: Widespread Bar closing up on High volume or above average volume . The smart money is pushing the prices up. Bullish Signal

EUF - Effort to Move Up Failed: Widespread / above average spread Bar closing down on High volume or above average volume appearing after ‘Effort to move up” bar.
This indicates that the Effort to move the pries up has failed. Bearish Signal

LVT- Low Volume Test: A low volume bar dipping into previous supply area and closing in the upper part of the Bar. A successful test is a positive sign. Indicates Strength

ST(after a LVT ) - Strength after Successful Low Volume Test: An up Bar closing near High after a Test confirms strength. Bullish Signal

RUT - Reverse Upthrust Bar: This will be a widespread Bar on high Volume closing on the high is a Down Trend. Here the buyers have become active and move the prices from the low to High. The down Move is likely to end and up trend likely to start soon. indicates Strength

NS - No supply Bar: This bar indicates that there is no supply. This is a sign of strength especially in a down trend. Indicates strength

ST - Strength Returns: When multiple bullish signals occur, the legend is printed in two lines. The Legend “ST” indicates that an condition of strength other than the condition mentioned in the second line is present. Bullish Signals


BAR COLORS

Green- Bullish / Strength
Red - Bearish / weakness
Blue / White - Sentiment Changing from bullish to Bearish and Vice Versa
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 a publication is governed by House Rules. You can favorite it to use it on a chart.

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Comments

Please try this script. Please provide the your feedback and suggestions for improvements.
+5 Reply
Manoj_Murali karthikmarar
@karthikmarar, Are there any setting changes required while using this in higher time frames like D,W,M ?
+1 Reply
karthikmarar Manoj_Murali
@Manoj_Murali, No need to make any adjustments
Reply
Thank you sir, awaiting volatility bands on your blog
+2 Reply
@hjsjshs, Will try to post next month
+2 Reply
thank you very much for your contribution karthik.
I would like to know the background of this coding.
is it based on VSA methods by toms williams ?
which books /articles to follow to get deeper understanding of your code ?

Thanks & Regards
+1 Reply
Awesome work, thank you for sharing this! I started using it on most of my charts.

A few pieces of feedback:
There is no need to render background. I use a slightly modded version where I removed it.
Also "TRB" is missing from the legend, although it does not appear often.
+1 Reply
rapturereaper JuiceShares
@JuiceShares, I also removed it. This is a very interesting indicator.
Reply
Hi Mr Karthi, great work, do u have the VPA formula for tradestation?
Reply
Thanks for the contribution !
Reply
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