Effective Volume (ADV) v3Effective Volume (ADV) v3: Enhanced Accumulation/Distribution Analysis Tool
This indicator is an updated version of the original script by cI8DH, now upgraded to Pine Script v5 with added functionality, including the Volume Multiple feature. The tool is designed for analyzing Accumulation/Distribution (A/D) volume, referred to here as "Effective Volume," which represents the volume impact in alignment with price direction, providing insights into bullish or bearish trends through volume.
Accumulation/Distribution Volume Analysis : The script calculates and visualizes Effective Volume (ADV), helping traders assess volume strength in relation to price action. By factoring in bullish or bearish alignment, Effective Volume highlights points where volume strongly supports price movements.
Volume Multiple Feature for Volume Multiplication : The Volume Multiple setting (default value 2) allows you to set a multiplier to identify bars where Effective Volume exceeds the previous bar’s volume by a specified factor. This feature aids in pinpointing significant shifts in volume intensity, often associated with potential trend changes.
Customizable Aggregation Types : Users can choose from three volume aggregation types:
Simple - Standard SMA (Simple Moving Average) for averaging Effective Volume
Smoothed - RMA (Recursive Moving Average) for a less volatile, smoother line
Cumulative - Accumulated Effective Volume for ongoing trend analysis
Volume Divisor : The “Divide Vol by” setting (default 1 million) scales down the Effective Volume value for easier readability. This allows Effective Volume data to be aligned with the scale of the price chart.
Visualization Elements
Effective Volume Columns : The Effective Volume bar plot changes color based on volume direction:
Green Bars : Bullish Effective Volume (volume aligns with price movement upwards)
Red Bars : Bearish Effective Volume (volume aligns with price movement downwards)
Moving Average Lines :
Volume Moving Average - A gray line representing the moving average of total volume.
A/D Moving Average - A blue line showing the moving average of Accumulation/Distribution (A/D) Effective Volume.
High ADV Indicator : A “^” symbol appears on bars where the Effective Volume meets or exceeds the Volume Multiple threshold, highlighting bars with significant volume increase.
How to Use
Analyze Accumulation/Distribution Trends : Use Effective Volume to observe if bullish or bearish volume aligns with price direction, offering insights into the strength and sustainability of trends.
Identify Volume Multipliers with Volume Multiple : Adjust Volume Multiple to track when Effective Volume has notably increased, signaling potential shifts or strengthening trends.
Adjust Volume Display : Use the volume divisor setting to scale Effective Volume for clarity, especially when viewing alongside price data on higher timeframes.
With customizable parameters, this script provides a flexible, enhanced perspective on Effective Volume for traders analyzing volume-based trends and reversals.
On Balance Volume (OBV)
OBV based on MADescription:
This indicator calculates On-Balance Volume (OBV) based on the direction of a Simple Moving Average (SMA). Instead of using price movements, this OBV adds or subtracts volume depending on whether the SMA is rising or falling.
SMA-based OBV: When the SMA rises, the volume is added to the OBV. When the SMA falls, the volume is subtracted from the OBV. This allows traders to observe cumulative volume in relation to the wave patterns created by the SMA.
SMA Period: The period of the SMA can be customized, allowing traders to adjust it according to the wave size they want to observe.
While the cumulative volume indicator already exists, traders who analyze volume patterns can use this indicator to more easily conduct volume analysis across different wave sizes.
Inputs:
SMA Period: Defines the lookback period for calculating the Simple Moving Average (default is 25).
Ideal for:
Traders who want to analyze volume flow relative to moving average trends, rather than price movements. This can help identify underlying strength or weakness in market trends.
説明:
このインジケーターは、単純移動平均（SMA）の方向に基づいてオンバランス・ボリューム（OBV）を計算します。価格の動きではなく、SMAが上昇しているときは出来高を加算し、SMAが下降しているときは出来高を減算します。
SMA基準のOBV: SMAが上昇している場合はOBVに出来高が加算され、SMAが下降している場合は出来高が減算されます。これにより、SMAが作る波形に即した累積出来高を観察することができます。
SMA期間: トレーダーが見たい波のサイズ感に応じて、SMAの期間をカスタマイズできます。
既に累積出来高（Cumulative Volume）というインジケーターは存在しますが、波形を基に出来高を分析しているトレーダーは、このインジケーターを使うことで、様々なサイズの波形に即した出来高分析をより簡単に行うことができます。
入力項目:
SMA期間: 単純移動平均の計算に使用される期間を定義します（デフォルトは25）。
適しているトレーダー:
より波形に即した累積出来高分析を重視するトレーダーに最適です。
OBV based on Heikin-AshiDescription
This indicator calculates the On-Balance Volume (OBV) based on Heikin-Ashi candles rather than regular candlesticks.
OBV based on Heikin-Ashi: The OBV is calculated based on Heikin-Ashi candle trends. Volume is added when the Heikin-Ashi close is above the open (bullish) and subtracted when the close is below the open (bearish).
Volume Analysis: This approach helps traders identify significant volume shifts in a smoother trend environment, reducing market noise that often accompanies traditional candlestick charts.
説明
このインジケーターは、通常のローソク足ではなく、平均足（Heikin-Ashi）を基にオンバランス・ボリューム（OBV）を計算します。
平均足に基づくOBV: OBVは、平均足のトレンドに基づいて計算されます。平均足の終値が始値を上回った場合（陽線）は出来高が加算され、終値が始値を下回った場合（陰線）は出来高が減算されます。
出来高分析: この手法により、通常のローソク足チャートで発生するノイズを軽減し、滑らかなトレンド環境で重要な出来高の変化を把握できます。
Market Trades PinescriptlabsThis algorithm is designed to emulate the true order book of exchanges by showing the quantity of transactions of an asset in real-time, while identifying patterns of high activity and volatility in the market through the analysis of volume and price movements. 📈 Below, I explain how to understand and use the information provided by the chart, along with the trades table:
Identification of High Activity Zones 🚀
The algorithm calculates the average volume and the rate of price change to detect areas with spikes in activity. This is visualized on the chart with labels "Volatility Spike Buy" and "Volatility Spike Sell":
Volatility Spike Buy: Indicates an unusual increase in volatility in the buying market, suggesting a potential surge in buying interest. 🟢
Volatility Spike Sell: Signals an increase in volatility in the selling market, which may indicate selling pressure or a sudden massive sell-off. 🔴
Market Trades Table 📋
The table provides a detailed view of the latest trades:
Price: Displays the price at which each trade was executed. 💵
Quantity (Traded): Indicates the amount of the asset traded. 💰
Type of Trade (Buy/Sell): Differentiates between buy (Buy) and sell (Sell) operations based on volume and strength. 🔄
Date and Time: Refers to the start of the calculated trading candle. ⏰
Recency: Identifies the most recent trade to facilitate tracking of current activity. 🔍
Analysis of Trade Imbalance ⚖️
The imbalance between buys and sells is calculated based on the volume of both. This indicator helps to understand whether the market has a tendency toward buying or selling, showing if there is greater strength on one side of the market.
A positive imbalance suggests more buying pressure. 📊
A negative imbalance indicates greater selling pressure. 📉
Volume Presentation
Visualizes the volume of buying and selling in the market, allowing the identification of buying or selling strength through the size of the volume candle. 🔍
Español :
"Este algoritmo está diseñado para emular el verdadero libro de órdenes de los intercambios al mostrar la cantidad de transacciones de un activo en tiempo real, mientras identifica patrones de alta actividad y volatilidad en el mercado a través del análisis de volumen y movimientos de precios. 📈 A continuación, explico cómo entender y usar la información proporcionada por el gráfico, junto con la tabla de operaciones:"
Identificación de Zonas de Alta Actividad 🚀
El algoritmo calcula el volumen promedio y la velocidad de cambio de precio para detectar zonas con picos de actividad. Esto se visualiza en el gráfico con etiquetas de "Volatility Spike Buy" y "Volatility Spike Sell":
Volatility Spike Buy: Indica un incremento inusual de volatilidad en el mercado de compra, sugiriendo un posible interés de compra elevado. 🟢
Volatility Spike Sell: Señala un incremento de volatilidad en el mercado de venta, lo cual puede indicar presión de venta o una venta masiva repentina. 🔴
Tabla de Operaciones en el Mercado (Market Trades) 📋
La tabla proporciona una vista detallada de las últimas operaciones:
Precio: Muestra el precio al cual se realizó cada operación. 💵
Cantidad (Transaccionada): Indica la cantidad del activo transaccionada. 💰
Tipo de operación (Buy/Sell): Diferencia entre operaciones de compra (Buy) y de venta (Sell), dependiendo del volumen y fuerza. 🔄
Fecha y Hora: Refleja el inicio de la vela de negociación calculada. ⏰
Recency: Identifica la operación más reciente para facilitar el seguimiento de la actividad actual. 🔍
Análisis de Desequilibrio de Operaciones (Imbalance) ⚖️
El desequilibrio entre compras y ventas se calcula con base en el volumen de ambas. Este indicador ayuda a entender si el mercado tiene una tendencia hacia la compra o venta, mostrando si hay una mayor fuerza en uno de los lados del mercado.
Un desequilibrio positivo sugiere más presión de compra. 📊
Un desequilibrio negativo indica mayor presión de venta. 📉
Presentación en Volumen
Visualiza el volumen de compra y venta en el mercado, permitiendo identificar mediante el tamaño de la vela de volumen la fuerza, ya sea compradora o vendedora. 🔍
Gold Scalping Strategy with Precise EntriesThe Gold Scalping Strategy with Precise Entries is designed to take advantage of short-term price movements in the gold market (XAU/USD). This strategy uses a combination of technical indicators and chart patterns to identify precise buy and sell opportunities during times of consolidation and trend continuation.
Key Elements of the Strategy:
Exponential Moving Averages (EMAs):
50 EMA: Used as the shorter-term moving average to detect the recent price trend.
200 EMA: Used as the longer-term moving average to determine the overall market trend.
Trend Identification:
A bullish trend is identified when the 50 EMA is above the 200 EMA.
A bearish trend is identified when the 50 EMA is below the 200 EMA.
Average True Range (ATR):
ATR (14) is used to calculate the market's volatility and to set a dynamic stop loss based on recent price movements. Higher ATR values indicate higher volatility.
ATR helps define a suitable stop-loss distance from the entry point.
Relative Strength Index (RSI):
RSI (14) is used as a momentum oscillator to detect overbought or oversold conditions.
However, in this strategy, the RSI is primarily used as a consolidation filter to look for neutral zones (between 45 and 55), which may indicate a potential breakout or trend continuation after a consolidation phase.
Engulfing Patterns:
Bullish Engulfing: A bullish signal is generated when the current candle fully engulfs the previous bearish candle, indicating potential upward momentum.
Bearish Engulfing: A bearish signal is generated when the current candle fully engulfs the previous bullish candle, signaling potential downward momentum.
Precise Entry Conditions:
Long (Buy):
The 50 EMA is above the 200 EMA (bullish trend).
The RSI is between 45 and 55 (neutral/consolidation zone).
A bullish engulfing pattern occurs.
The price closes above the 50 EMA.
Short (Sell):
The 50 EMA is below the 200 EMA (bearish trend).
The RSI is between 45 and 55 (neutral/consolidation zone).
A bearish engulfing pattern occurs.
The price closes below the 50 EMA.
Take Profit and Stop Loss:
Take Profit: A fixed 20-pip target (where 1 pip = 0.10 movement in gold) is used for each trade.
Stop Loss: The stop-loss is dynamically set based on the ATR, ensuring that it adapts to current market volatility.
Visual Signals:
Buy and sell signals are visually plotted on the chart using green and red labels, indicating precise points of entry.
Advantages of This Strategy:
Trend Alignment: The strategy ensures that trades are taken in the direction of the overall trend, as indicated by the 50 and 200 EMAs.
Volatility Adaptation: The use of ATR allows the stop loss to adapt to the current market conditions, reducing the risk of premature exits in volatile markets.
Precise Entries: The combination of engulfing patterns and the neutral RSI zone provides a high-probability entry signal that captures momentum after consolidation.
Quick Scalping: With a fixed 20-pip profit target, the strategy is designed to capture small price movements quickly, which is ideal for scalping.
This strategy can be applied to lower timeframes (such as 1-minute, 5-minute, or 15-minute charts) for frequent trade opportunities in gold trading, making it suitable for day traders or scalpers. However, proper risk management should always be used due to the inherent volatility of gold.
MTOBVR_CheckOverview.
This indicator checks to see if the OBV follows a specific pattern and visually displays the trend of the OBV on different time legs. It also has the ability to set alerts when certain conditions are met.
How to use
Setting up the indicator
Add a new indicator on a chart in TradingView.
Copy the code into the “Pine Script™ Editor” and save it as a new script.
Apply the script to your chart.
Indicator Functions
OBV Calculation
Calculates OBV for each time frame (5-minute, 15-minute, 30-minute, 1-hour, 4-hour, daily, and weekly) and displays it on the chart OBV is an indicator that combines price changes and trading volume.
Pattern Detection
Detects whether a particular pattern, such as a double or triple bottom, appears in the OBV. This allows us to identify buy or sell signals.
When these patterns are detected, the background color changes.
Background Color Change
When an OBV forms a particular pattern, the background color of the chart changes. This provides visual confirmation that a pattern has appeared.
Minimum pattern (min_bool): when the 5-, 15-, and 30-minute conditions for OBV are met.
High hourly pattern (h_bool): when the condition is met for the 1-hour, 4-hour, and daily legs of the OBV.
One-week pattern (range_obv_1w_bool): when the condition is met for the 1-week OBV pattern.
When all conditions are met: when the minimum pattern, high hourly pattern, and one-week pattern are all met.
Alert Settings
You can set alerts when certain conditions are met. This allows you to receive signals in real time.
Minimum conditions (min_bool): conditions at 5, 15, and 30 minutes of OBV.
High timeframe condition (h_bool): condition on the 1-hour, 4-hour, and daily legs of the OBV.
When all conditions are met: When all of the above conditions are met.
One-week condition (range_obv_1w_bool): Condition for the one-week leg of the OBV.
When all conditions are met: when the minimum, high time leg, and one week conditions are all met.
Arrows
OBV_ALL_UP: A green triangle arrow is displayed when the OBV is rising on all time legs.
OBV_ALL_DOWN: A red triangle arrow appears when the OBV is falling on all time legs.
Usage Notes
Time Leg Settings: This script uses OBVs of different time legs to detect patterns. Depending on the time leg used, appropriate settings and interpretation are required.
Alert settings: In order to activate the alert function, the alert conditions and notification method must be configured using TradingView's alert system.
This indicator allows you to visually see trends and patterns in the OBV across multiple time frames, allowing you to make more informed trading decisions.
Volume-Weighted RSI with HMA SmoothingThis script combines a Volume-Weighted RSI, smoothed with a custom Hull Moving Average (HMA), with a modified MACD based on normalized net volume.
Volume-Weighted RSI: It is calculated by adjusting the closing price with a normalized On-Balance Volume (OBV) and then applying an RSI. This approach weights the RSI according to volume, providing a more accurate measure of the strength of the price movement.
Modified HMA: A Hull Moving Average (HMA) is used to smooth the Volume-Weighted RSI, enhancing the ability to identify market trend changes.
Possible Reversal from Oversold:
The Volume-Weighted RSI crosses above the oversold level.
It is displayed as an upward green triangle at the bottom of the chart, indicating that the market might be exhausting its oversold conditions and potentially starting an upward reversal.
Possible Reversal from Overbought:
The Volume-Weighted RSI crosses below the overbought level.
It is displayed as a downward red triangle at the top of the chart, indicating that the market might be exhausting its overbought conditions and potentially starting a downward reversal.
Confirmation with the Modified MACD: For a more robust interpretation, the behavior of the modified MACD can be observed alongside the RSI cross.
The MACD is also modified, using normalized net volume (calculated as the cumulative change in the closing price multiplied by volume) as the input instead of the standard closing price.
The direction and color change of the MACD bars indicate the market's momentum.
Alerts: Alerts are set to trigger automatically when the modified RSI crosses the oversold or overbought levels.
Español:
Este script combina un RSI ponderado por volumen, suavizado con un Hull Moving Average (HMA) personalizado, con un MACD modificado basado en volumen neto normalizado.
RSI Ponderado por Volumen: Se calcula ajustando el precio de cierre con un OBV (On-Balance Volume) normalizado y luego aplicando un RSI. Este enfoque pondera el RSI según el volumen, proporcionando una medida más precisa de la fuerza del movimiento del precio.
HMA Modificado: Se utiliza un Hull Moving Average (HMA) para suavizar el RSI Ponderado por Volumen, mejorando la capacidad de identificar cambios en la tendencia del mercado.
Posible Reversión desde Sobreventa:
El RSI Ponderado por Volumen cruza por encima del nivel de sobreventa.
Se muestra como un triángulo verde hacia arriba en la parte inferior del gráfico, indicando que el mercado podría estar agotando las condiciones de sobreventa y comenzar una posible reversión al alza.
Posible Reversión desde Sobrecompra:
El RSI Ponderado por Volumen cruza por debajo del nivel de sobrecompra.
Se muestra como un triángulo rojo hacia abajo en la parte superior del gráfico, indicando que el mercado podría estar agotando las condiciones de sobrecompra y comenzar una posible reversión a la baja.
Confirmación con el MACD Modificado: Para una interpretación más robusta, se puede observar el comportamiento del MACD modificado junto con el cruce del RSI.
El MACD también está modificado, utilizando el volumen neto normalizado (calculado como el cambio acumulativo en el precio de cierre multiplicado por el volumen) como entrada en lugar del precio de cierre estándar.
La dirección y el cambio de color de las barras del MACD indican el impulso del mercado.
Alertas: Las alertas están configuradas para activarse automáticamente cuando el RSI modificado cruza los niveles de sobreventa o sobrecompra.
Six PillarsGeneral Overview
The "Six Pillars" indicator is a comprehensive trading tool that combines six different technical analysis methods to provide a holistic view of market conditions.
These six pillars are:
Trend
Momentum
Directional Movement (DM)
Stochastic
Fractal
On-Balance Volume (OBV)
The indicator calculates the state of each pillar and presents them in an easy-to-read table format. It also compares the current timeframe with a user-defined comparison timeframe to offer a multi-timeframe analysis.
A key feature of this indicator is the Confluence Strength meter. This unique metric quantifies the overall agreement between the six pillars across both timeframes, providing a score out of 100. A higher score indicates stronger agreement among the pillars, suggesting a more reliable trading signal.
I also included a visual cue in the form of candle coloring. When all six pillars agree on a bullish or bearish direction, the candle is colored green or red, respectively. This feature allows traders to quickly identify potential high-probability trade setups.
The Six Pillars indicator is designed to work across multiple timeframes, offering a comparison between the current timeframe and a user-defined comparison timeframe. This multi-timeframe analysis provides traders with a more comprehensive understanding of market dynamics.
Origin and Inspiration
The Six Pillars indicator was inspired by the work of Dr. Barry Burns, author of "Trend Trading for Dummies" and his concept of "5 energies." (Trend, Momentum, Cycle, Support/Resistance, Scale) I was intrigued by Dr. Burns' approach to analyzing market dynamics and decided to put my own twist upon his ideas.
Comparing the Six Pillars to Dr. Burns' 5 energies, you'll notice I kept Trend and Momentum, but I swapped out Cycle, Support/Resistance, and Scale for Directional Movement, Stochastic, Fractal, and On-Balance Volume. These changes give you a more dynamic view of market strength, potential reversals, and volume confirmation all in one package.
What Makes This Indicator Unique
The standout feature of the Six Pillars indicator is its Confluence Strength meter. This feature calculates the overall agreement between the six pillars, providing traders with a clear, numerical representation of signal strength.
The strength is calculated by considering the state of each pillar in both the current and comparison timeframes, resulting in a score out of 100.
Here's how it calculates the strength:
It considers the state of each pillar in both the current timeframe and the comparison timeframe.
For each pillar, the absolute value of its state is taken. This means that both strongly bullish (2) and strongly bearish (-2) states contribute equally to the strength.
The absolute values for all six pillars are summed up for both timeframes, resulting in two sums: current_sum and alternate_sum.
These sums are then added together to get a total_sum.
The total_sum is divided by 24 (the maximum possible sum if all pillars were at their strongest states in both timeframes) and multiplied by 100 to get a percentage.
The result is rounded to the nearest integer and capped at a minimum of 1.
This calculation method ensures that the Confluence Strength meter takes into account not only the current timeframe but also the comparison timeframe, providing a more robust measure of overall market sentiment. The resulting score, ranging from 1 to 100, gives traders a clear and intuitive measure of how strongly the pillars agree, with higher scores indicating stronger potential signals.
This approach to measuring signal strength is unique in that it doesn't just rely on a single aspect of price action or volume. Instead, it takes into account multiple factors, providing a more robust and reliable indication of potential market moves. The higher the Confluence Strength score, the more confident traders can be in the signal.
The Confluence Strength meter helps traders in several ways:
It provides a quick and easy way to gauge the overall market sentiment.
It helps prioritize potential trades by identifying the strongest signals.
It can be used as a filter to avoid weaker setups and focus on high-probability trades.
It offers an additional layer of confirmation for other trading strategies or indicators.
By combining the Six Pillars analysis with the Confluence Strength meter, I've created a powerful tool that not only identifies potential trading opportunities but also quantifies their strength, giving traders a significant edge in their decision-making process.
How the Pillars Work (What Determines Bullish or Bearish)
While developing this indicator, I selected and configured six key components that work together to provide a comprehensive view of market conditions. Each pillar is set up to complement the others, creating a synergistic effect that offers traders a more nuanced understanding of price action and volume.
Trend Pillar: Based on two Exponential Moving Averages (EMAs) - a fast EMA (8 period) and a slow EMA (21 period). It determines the trend by comparing these EMAs, with stronger trends indicated when the fast EMA is significantly above or below the slow EMA.
Directional Movement (DM) Pillar: Utilizes the Average Directional Index (ADX) with a default period of 14. It measures trend strength, with values above 25 indicating a strong trend. It also considers the Positive and Negative Directional Indicators (DI+ and DI-) to determine trend direction.
Momentum Pillar: Uses the Moving Average Convergence Divergence (MACD) with customizable fast (12), slow (26), and signal (9) lengths. It compares the MACD line to the signal line to determine momentum strength and direction.
Stochastic Pillar: Employs the Stochastic oscillator with a default period of 13. It identifies overbought conditions (above 80) and oversold conditions (below 20), with intermediate zones between 60-80 and 20-40.
Fractal Pillar: Uses Williams' Fractal indicator with a default period of 3. It identifies potential reversal points by looking for specific high and low patterns over the given period.
On-Balance Volume (OBV) Pillar: Incorporates On-Balance Volume with three EMAs - short (3), medium (13), and long (21) periods. It assesses volume trends by comparing these EMAs.
Each pillar outputs a state ranging from -2 (strongly bearish) to 2 (strongly bullish), with 0 indicating a neutral state. This standardized output allows for easy comparison and aggregation of signals across all pillars.
Users can customize various parameters for each pillar, allowing them to fine-tune the indicator to their specific trading style and market conditions. The multi-timeframe comparison feature also allows users to compare pillar states between the current timeframe and a user-defined comparison timeframe, providing additional context for decision-making.
Design
From a design standpoint, I've put considerable effort into making the Six Pillars indicator visually appealing and user-friendly. The clean and minimalistic design is a key feature that sets this indicator apart.
I've implemented a sleek table layout that displays all the essential information in a compact and organized manner. The use of a dark background (#030712) for the table creates a sleek look that's easy on the eyes, especially during extended trading sessions.
The overall design philosophy focuses on presenting complex information in a simple, intuitive format, allowing traders to make informed decisions quickly and efficiently.
The color scheme is carefully chosen to provide clear visual cues:
White text for headers ensures readability
Green (#22C55E) for bullish signals
Blue (#3B82F6) for neutral states
Red (#EF4444) for bearish signals
This color coding extends to the candle coloring, making it easy to spot when all pillars agree on a bullish or bearish outlook.
I've also incorporated intuitive symbols (↑↑, ↑, →, ↓, ↓↓) to represent the different states of each pillar, allowing for quick interpretation at a glance.
The table layout is thoughtfully organized, with clear sections for the current and comparison timeframes. The Confluence Strength meter is prominently displayed, providing traders with an immediate sense of signal strength.
To enhance usability, I've added tooltips to various elements, offering additional information and explanations when users hover over different parts of the indicator.
How to Use This Indicator
The Six Pillars indicator is a versatile tool that can be used for various trading strategies. Here are some general usage guidelines and specific scenarios:
General Usage Guidelines:
Pay attention to the Confluence Strength meter. Higher values indicate stronger agreement among the pillars and potentially more reliable signals.
Use the multi-timeframe comparison to confirm signals across different time horizons.
Look for alignment between the current timeframe and comparison timeframe pillars for stronger signals.
One of the strengths of this indicator is it can let you know when markets are sideways – so in general you can know to avoid entering when the Confluence Strength is low, indicating disagreement among the pillars.
Customization Options
The Six Pillars indicator offers a wide range of customization options, allowing traders to tailor the tool to their specific needs and trading style. Here are the key customizable elements:
Comparison Timeframe:
Users can select any timeframe for comparison with the current timeframe, providing flexibility in multi-timeframe analysis.
Trend Pillar:
Fast EMA Period: Adjustable for quicker or slower trend identification
Slow EMA Period: Can be modified to capture longer-term trends
Momentum Pillar:
MACD Fast Length
MACD Slow Length
MACD Signal Length These can be adjusted to fine-tune momentum sensitivity
DM Pillar:
ADX Period: Customizable to change the lookback period for trend strength measurement
ADX Threshold: Adjustable to define what constitutes a strong trend
Stochastic Pillar:
Stochastic Period: Can be modified to change the sensitivity of overbought/oversold readings
Fractal Pillar:
Fractal Period: Adjustable to identify potential reversal points over different timeframes
OBV Pillar:
Short OBV EMA
Medium OBV EMA
Long OBV EMA These periods can be customized to analyze volume trends over different timeframes
These customization options allow traders to experiment with different settings to find the optimal configuration for their trading strategy and market conditions. The flexibility of the Six Pillars indicator makes it adaptable to various trading styles and market environments.
Multi Exchange Relative Volume IndicatorThe Multi Exchange Relative Volume indicator is a powerful tool designed to visualize the relative volume across different exchanges. This is particularly useful for decentralized securities like forex and crypto, where volume data is spread across multiple markets. By aggregating volume data from various exchanges, this indicator helps traders identify trends, spot unusual volume spikes, and make informed trading decisions.
Key Features:
Multi-Exchange Volume Aggregation: Collects and sums the volume data from up to five different exchanges, offering a holistic view of the market activity.
Customizable Inputs: Easily select and configure up to five different exchanges of your choice to monitor their volume activity.
Relative Volume Visualization: Compares the aggregated volume against historical averages to highlight periods of high or low volume.
Color-Coded Volume Bars: Volume bars are color-coded based on the relative volume percentage, providing quick visual cues:
- Red for volume 1.0-1.5 times the average
- Orange for volume 1.5-2.0 times the average
- Green for volume 2.0-3.0 times the average
- Yellow for volume greater than 3.0 times the average
- Grey for below average volume
Dynamic Lookback Period: Adjust the lookback period to suit your trading style and timeframe, allowing for flexible analysis.
Exponential Moving Average (EMA): Includes an EMA of volume to smooth out short-term fluctuations and highlight longer-term trends.
Scalable Layout: The scaling factor allows you to zoom in or out, adjusting the visual representation of volume data to better fit your chart.
Usage:
Configure Exchanges: Select up to five exchanges you want to monitor from the input settings.
Set Lookback Period and Bars: Customize the lookback period and the number of bars to consider for calculating average volume.
Adjust Scaling: Use the scaling factor to zoom in or out on the volume data for better visualization.
Interpret Volume Bars: Analyze the color-coded volume bars to identify significant changes in volume and potential trading opportunities.
Monitor EMA: Use the EMA line to understand the trend and smooth out noise from the volume data.
The Multi Exchange Relative Volume indicator is an essential tool for traders who want to gain deeper insights into market activity across multiple exchanges. By visualizing relative volume, it helps in identifying potential breakout or breakdown points, enhancing your trading strategy.
RSI Screener / Heatmap - By LeviathanThis script allows you to quickly scan the market by displaying the RSI values of up to 280 tickers at once and visualizing them in an easy-to-understand format using labels with heatmap coloring.
📊 Source
The script can display the RSI from a custom timeframe (MTF) and custom length for the following data:
- Price
- OBV (On Balance Volume)
- Open Interest (for crypto tickers)
📋 Ticker Selection
This script uses a different approach for selecting tickers. Instead of inputting them one by one via input.symbol(), you can now copy-paste or edit a list of tickers in the text area window. This approach allows users to easily exchange ticker lists between each other and, for example, create multiple lists of tickers by sector, market cap, etc., and easily input them into the script. Full credit to @allanster for his functions for extracting tickers from the text. Users can switch between 7 groups of 40 tickers each, totaling 280 tickers.
🖥️ Display Types
- Screener with Labels: Each ticker has its own color-coded label located at its RSI value.
- Group Average RSI: A standard RSI plot that displays the average RSI of all tickers in the group.
- RSI Heatmap (coming soon): Color-coded rows displaying current and historical values of tickers.
- RSI Divergence Heatmap (coming soon): Color-coded rows displaying current and historical regular/hidden bullish/bearish divergences for tickers.
🎨 Appearance
Appearance is fully customizable via user inputs, allowing you to change heatmap/gradient colors, zone coloring, and more.
On Balance Volume WaveIntroducing an Enhanced Version of the Classic OBV Indicator
The On-Balance Volume (OBV) indicator is a well-known tool among traders, celebrated for its ability to track momentum by using volume flow to predict changes in stock price. For an overview of the original OBV indicator, please visit: www.tradingview.com .
What Makes This Version Different?
This enhanced version of the OBV indicator incorporates advanced signal processing techniques to bring new depth to market analysis. Here's what sets it apart:
Standard Deviation Bands and EMAs: These additions to the OBV offer a visual representation of significant market movements—highlighting major pumps and dumps, as well as identifying potential support and resistance levels.
Color-Coded Insights: The standard deviation bands utilize color coding based on signal processing principles. This feature becomes increasingly useful the more you zoom out, making it easier to observe and interpret market waves.
Market Maker Activity: By examining fluctuations within the standard deviation bands, traders can gauge when Market Makers are actively maneuvering to establish their long and short positions, often at the expense of retail traders.
EMA Support and Resistance: The embedded Exponential Moving Averages (EMAs) serve as dynamic support and resistance levels. Analyzing these can help traders determine the continuing strength of a market move, whether bullish or bearish.
Visual Guide to the Basics
For a clearer understanding of what this enhanced indicator can show, please refer to the image below:
And in addition to all the above one can detect relevant W and M structures way easier with this indicator ;)
Cumulative Volume Price (Candle Body, High-Low)Indicator Description: Cumulative Volume Price (Candle Body, High Low)
This indicator features three cumulative plots that continuously accumulate values over time.
Cumulative Volume Plot:
The first plot displays the cumulative volume, calculated by continuously adding the volume values from zero.
Cumulative Candle Body Width Plot:
The second plot displays the cumulative width of the candle bodies, obtained by continuously adding the actual body widths from zero.
Cumulative Candle High-Low Width Plot:
The third plot displays the cumulative width of the candle high-low ranges, calculated by continuously adding the widths between the high and low prices from zero.
Usage Guidelines:
Due to the different orders of magnitude in value range used for volume and candlesticks, it is advisable to typically select and display any single plot.
説明
このインジケーターは、時間の経過とともに値を累積し続ける3つのプロットを備えています。
累積ボリューム:
ボリュームの値をゼロから累積的に加算しています。
ローソク足の累積実体幅:
ローソク足の実体幅の値をゼロから累積的に加算しています。
ローソク足の累積高安幅:
ローソク足の高安の幅の値をゼロから累積的に表示しています。
使用ガイドライン:
ボリュームとローソク足で使用する数値のオーダーが異なるため、通常は任意の一本を選択して表示することを想定しています。
TASC 2024.01 Gap Momentum System█ OVERVIEW
TASC's January 2024 edition of Traders' Tips features an article titled “Gap Momentum” by Perry J. Kaufman. The article discusses how a trader might create a momentum strategy based on opening gap data. This script implements the Gap Momentum system presented therein.
█ CONCEPTS
In the article, Perry J. Kaufman introduces Gap Momentum as a cumulative series constructed in the same way as On-Balance Volume (OBV) , but using gap openings (today’s open minus yesterday’s close).
To smoothen the resulting time series (i.e., obtain the " signal line "), the author applies a simple moving average . Subsequently, he proposes the following two trading rules for a long-only trading system:
• Enter a long position when the signal line is moving higher.
• Exit when the signal line is moving lower.
█ CALCULATIONS
The calculation of Gap Momentum involves the following steps:
1. Calculate the ratio of the sum of positive gaps over the past N days to the sum of negative gaps (absolute values) over the same time period.
2. Add the resulting gap ratio to the cumulative time series. This time series is the Gap Momentum.
3. Keep moving forward, as in an N-day moving average.
Klinger Oscillator AdvancedThe Klinger Oscillator is not fully implemented in Tradeview. While the description at de.tradingview.com is complete, the implementation is limited to the pure current volume movement. This results in no difference compared to the On Balance Volume indicator.
However, Klinger's goal was to incorporate the trend as volume force in its strength and duration into the calculation. The expression ((V x x T x 100)) for volume force only makes sense as an absolute value, which should probably be expressed as ((V x abs(2 x ((dm/cm) - 1)) x T x 100)). Additionally, there is a need to handle the theoretical possibility of cm == 0.
Since, in general, significantly more trading volume occurs at the closing price than during the day, an additional parameter for weighting the closing price is implemented. In intraday charts, considering the closing price, in my opinion, does not make sense.
The TradeView implementation is displayed on the chart for comparison. Particularly in the analysis of divergence, significant deviations become apparent.
OBV Daily High Low Box Realtime (On Balance Volume)Overview
This indicator plots horizontal lines at the daily high and low levels of the On Balance Volume (OBV).
The numerical lines for each day are updated in real-time as the OBV high and low values change.
Please note that there are limitations on how far back in history the indicator can go due to Pine Script's object drawing limitations.
Multi-Asset Performance [Spaghetti] - By LeviathanThis indicator visualizes the cumulative percentage changes or returns of 30 symbols over a given period and offers a unique set of tools and data analytics for deeper insight into the performance of different assets.
Multi Asset Performance indicator (also called “Spaghetti”) makes it easy to monitor the changes in Price, Open Interest, and On Balance Volume across multiple assets simultaneously, distinguish assets that are overperforming or underperforming, observe the relative strength of different assets or currencies, use it as a tool for identifying mean reversion opportunities and even for constructing pairs trading strategies, detect "risk-on" or "risk-off" periods, evaluate statistical relationships between assets through metrics like correlation and beta, construct hedging strategies, trade rotations and much more.
Start by selecting a time period (e.g., 1 DAY) to set the interval for when data is reset. This will provide insight into how price, open interest, and on-balance volume change over your chosen period. In the settings, asset selection is fully customizable, allowing you to create three groups of up to 30 tickers each. These tickers can be displayed in a variety of styles and colors. Additional script settings offer a range of options, including smoothing values with a Simple Moving Average (SMA), highlighting the top or bottom performers, plotting the group mean, applying heatmap/gradient coloring, generating a table with calculations like beta, correlation, and RSI, creating a profile to show asset distribution around the mean, and much more.
One of the most important script tools is the screener table, which can display:
🔸 Percentage Change (Represents the return or the percentage increase or decrease in Price/OI/OBV over the current selected period)
🔸 Beta (Represents the sensitivity or responsiveness of asset's returns to the returns of a benchmark/mean. A beta of 1 means the asset moves in tandem with the market. A beta greater than 1 indicates the asset is more volatile than the market, while a beta less than 1 indicates the asset is less volatile. For example, a beta of 1.5 means the asset typically moves 150% as much as the benchmark. If the benchmark goes up 1%, the asset is expected to go up 1.5%, and vice versa.)
🔸 Correlation (Describes the strength and direction of a linear relationship between the asset and the mean. Correlation coefficients range from -1 to +1. A correlation of +1 means that two variables are perfectly positively correlated; as one goes up, the other will go up in exact proportion. A correlation of -1 means they are perfectly negatively correlated; as one goes up, the other will go down in exact proportion. A correlation of 0 means that there is no linear relationship between the variables. For example, a correlation of 0.5 between Asset A and Asset B would suggest that when Asset A moves, Asset B tends to move in the same direction, but not perfectly in tandem.)
🔸 RSI (Measures the speed and change of price movements and is used to identify overbought or oversold conditions of each asset. The RSI ranges from 0 to 100 and is typically used with a time period of 14. Generally, an RSI above 70 indicates that an asset may be overbought, while RSI below 30 signals that an asset may be oversold.)
⚙️ Settings Overview:
◽️ Period
Periodic inputs (e.g. daily, monthly, etc.) determine when the values are reset to zero and begin accumulating again until the period is over. This visualizes the net change in the data over each period. The input "Visible Range" is auto-adjustable as it starts the accumulation at the leftmost bar on your chart, displaying the net change in your chart's visible range. There's also the "Timestamp" option, which allows you to select a specific point in time from where the values are accumulated. The timestamp anchor can be dragged to a desired bar via Tradingview's interactive option. Timestamp is particularly useful when looking for outperformers/underperformers after a market-wide move. The input positioned next to the period selection determines the timeframe on which the data is based. It's best to leave it at default (Chart Timeframe) unless you want to check the higher timeframe structure of the data.
◽️ Data
The first input in this section determines the data that will be displayed. You can choose between Price, OI, and OBV. The second input lets you select which one out of the three asset groups should be displayed. The symbols in the asset group can be modified in the bottom section of the indicator settings.
◽️ Appearance
You can choose to plot the data in the form of lines, circles, areas, and columns. The colors can be selected by choosing one of the six pre-prepared color palettes.
◽️ Labeling
This input allows you to show/hide the labels and select their appearance and size. You can choose between Label (colored pointed label), Label and Line (colored pointed label with a line that connects it to the plot), or Text Label (colored text).
◽️ Smoothing
If selected, this option will smooth the values using a Simple Moving Average (SMA) with a custom length. This is used to reduce noise and improve the visibility of plotted data.
◽️ Highlight
If selected, this option will highlight the top and bottom N (custom number) plots, while shading the others. This makes the symbols with extreme values stand out from the rest.
◽️ Group Mean
This input allows you to select the data that will be considered as the group mean. You can choose between Group Average (the average value of all assets in the group) or First Ticker (the value of the ticker that is positioned first on the group's list). The mean is then used in calculations such as correlation (as the second variable) and beta (as a benchmark). You can also choose to plot the mean by clicking on the checkbox.
◽️ Profile
If selected, the script will generate a vertical volume profile-like display with 10 zones/nodes, visualizing the distribution of assets below and above the mean. This makes it easy to see how many or what percentage of assets are outperforming or underperforming the mean.
◽️ Gradient
If selected, this option will color the plots with a gradient based on the proximity of the value to the upper extreme, zero, and lower extreme.
◽️ Table
This section includes several settings for the table's appearance and the data displayed in it. The "Reference Length" input determines the number of bars back that are used for calculating correlation and beta, while "RSI Length" determines the length used for calculating the Relative Strength Index. You can choose the data that should be displayed in the table by using the checkboxes.
◽️ Asset Groups
This section allows you to modify the symbols that have been selected to be a part of the 3 asset groups. If you want to change a symbol, you can simply click on the field and type the ticker of another one. You can also show/hide a specific asset by using the checkbox next to the field.
Buyer/Seller Dominance ©TMW
The "Buyer/Seller Dominance" indicator script, developed by Deepanshu Sharma under The Market Wisdom (TMW), is a powerful analytical tool designed for use on the TradingView platform. This script is released under the Mozilla Public License 2.0, and it offers traders and investors an innovative perspective on market dynamics by assessing the relative strength of buyers and sellers within a given time frame.
Key Features:
1. Dominance Calculation: The indicator calculates the dominance of buyers and sellers over a specified number of candles. Users can define the number of candles (`n`) to consider in the dominance calculation.
2. Visual Representation: The script provides a visual representation of buyer and seller dominance using colored columns on the price chart. Green columns represent buyer dominance, while red columns represent seller dominance.
3. Balance Line: The indicator includes a dashed horizontal line at the zero level, representing a balance point between buyer and seller dominance. When the green and red columns cross this line, it signifies shifts in market sentiment.
How it Works:
The script divides the historical price data into segments of specified candle count (`n`) and assesses each segment's dominance. It calculates the volume associated with both green (bullish) and red (bearish) candles within each segment.
If a candle's closing price is higher than its opening price, it is considered a green candle. Similarly, if the closing price is lower than the opening price, the candle is classified as red. The volume of each respective type of candle is then accumulated for each segment.
The script plots the cumulative green candle volume as the "Buyer Dominance" column and the cumulative red candle volume as the "Seller Dominance" column. This visual representation helps traders gauge the ebb and flow of buyer and seller strength in the market.
Disclaimer :
The indicator is provided for informational purposes only and should not be considered as financial advice. It's important to conduct thorough research and analysis before making any trading decisions. The creator, Deepanshu Sharma, and "The Market Wisdom" team are not responsible for any trading losses incurred based on the usage of this indicator.
Remember that trading involves risks, and historical performance may not necessarily predict future results. Always consider multiple indicators, market trends, and risk management strategies when making trading decisions.
Relative Strength Volume ComparisonThe Relative Strength Volume Comparison is a powerful tool that can help traders identify the current trend based on volume pressure and potential reversals.
This oscillator is made of two lines and the overbought and oversold levels. Each of these two lines is a relative-strength formula that contains both the famous RSI and CCI formulas, smoothed by a Hull moving average.
The two lines are different for input. The colored line is based just on price and changes color based on the relation with the other line. The second line uses as input an average of three different popular volume indicators: The OBV, the Accumulation/Distribution, and the PVT.
Thanks to this tool, which uses 6 different formulas combined, traders can:
- Identify the current trend direction, based on the color of the area fill and the first colored line
- Identify potential reversal areas thanks to the overbought and oversold levels, customizable in the input section alongside the length and smoothing parameters.
On Balance Volume Heikin-Ashi Transformed
The OBV Heikin Ashi indicator is a modified version of the On-Balance Volume indicator that incorporates the Heikin Ashi transformation. This technical tool aims to provide traders with a smoother representation of volume dynamics and price trends.
The OBV Heikin Ashi indicator combines the principles of OBV and Heikin Ashi to offer insights into the volume and price behavior of an asset. Understanding OBV and Heikin Ashi individually will provide a foundation for comprehending the uniqueness and utility of this indicator.
On-Balance Volume:
OBV is a volume-based indicator that measures the cumulative buying and selling pressure in the market. It considers the relationship between volume and price movements to determine the overall strength and direction of a trend. Rising OBV values suggest bullish buying pressure, while falling values indicate bearish selling pressure.
Heikin Ashi:
Heikin Ashi is a Japanese candlestick charting technique that aims to filter out noise and provide a smoother representation of price trends. It calculates each candlestick based on the average of the previous candle's open, close, high, and low prices. Heikin Ashi candles can reveal the underlying trend more clearly by reducing market noise.
Methodology:
The 𝘖𝘉𝘝 𝘏-𝘈 indicator applies the Heikin Ashi transformation to the OBV values. Each OBV value is replaced with a Heikin Ashi equivalent, which is calculated based on the average of the previous Heikin Ashi candle's open and close prices. This transformation smooths out the OBV values and helps identify the overall trend with reduced noise. Additionaly, 2 optional EMAs are included for convergence-divergence analysis.
By applying the Heikin Ashi transformation to OBV, the indicator aims to enhance the readability of volume and trend information, providing traders with a clearer understanding of market dynamics.
Utility:
The 𝘖𝘉𝘝 𝘏-𝘈 indicator can be a valuable tool for traders and investors in analyzing volume and price trends. It offers a smoother representation of OBV values, allowing for easier identification of trend reversals, bullish or bearish market conditions, and potential trading opportunities. Traders can utilize the indicator to confirm price trends, validate support and resistance levels, and enhance their overall trading strategies.
It is worth noting that the effectiveness of the indicator may vary depending on the specific market and trading strategy. It is recommended to combine its analysis with other technical indicators and perform thorough backtesting before making trading decisions.
Key Features:
2 Adjustable EMAs
Normalized Oscillator Mode
Example Charts:
See Also:
Z-Score Heikin-Ashi Transformed
On-Balance Accumulation Distribution (Volume-Weighted)The On-Balance Accumulation Distribution (OBAD) indicator is designed to analyze the accumulation and distribution of assets based on volume-weighted price movements. The indicator helps traders identify periods of buying and selling pressure and assess the strength of market trends. By incorporating volume and price data, the OBAD indicator provides valuable insights into the flow of funds in the market.
To calculate the OBAD, the indicator multiplies the volume, price, and volume factor (user-defined) with the price change and aggregates the values over a specified length. This results in a histogram and a line plot representing the OBAD values. The OBAD signal line is derived by applying a simple moving average (SMA) to the OBAD values over a shorter period (9 by default). The crossover of the OBAD line and signal line can indicate potential entry or exit points.
The OBAD indicator utilizes coloration to enhance its visual representation and interpretation. The OBAD background is colored based on the relationship between the OBAD values and the OBAD signal line. When the OBAD values are above the signal line, the background is displayed in lime, suggesting a bullish accumulation scenario. Conversely, when the OBAD values are below the signal line, the background is colored fuchsia, indicating a bearish distribution pattern. The bar coloration is also applied to provide further visual cues, with lime representing bullish conditions and fuchsia denoting bearish conditions. When the OBAD signal line is above 0, it is colored green. Conversely, if the signal line is below 0, it is colored maroon.
The length parameter in the OBAD indicator determines the number of periods used in the calculation. Shorter lengths, such as 10 or 20, can make the indicator more responsive to recent price and volume changes, providing quicker signals. This can be beneficial for short-term traders or in fast-paced markets. Conversely, longer lengths, such as 50 or 100, smooth out the indicator and provide a broader view of accumulation and distribution over a more extended period. This may suit longer-term traders or when analyzing trends in less volatile markets. Traders should experiment with different lengths to find the optimal balance between responsiveness and smoothness that aligns with their trading goals.
The volume factor parameter allows traders to adjust the weighting of volume in the OBAD calculation. By modifying this factor, traders can emphasize the impact of volume on the indicator. Increasing the volume factor amplifies the influence of volume in the OBAD calculation, making it more sensitive to volume changes. This can be advantageous when volume is considered a significant driver of price movements, such as during news events or market catalysts. On the other hand, decreasing the volume factor reduces the impact of volume, making the indicator less sensitive to volume fluctuations. Traders can experiment with different volume factors to align the indicator's responsiveness with their analysis of volume patterns and its importance in their trading decisions.
The signal line period parameter determines the number of periods used to calculate the moving average of the OBAD values. Adjusting this parameter can help smooth out the indicator and filter out short-term noise or provide more timely signals. A shorter signal line period, such as 5 or 7, provides more sensitive and frequent crossovers with the OBAD values, potentially offering early entry or exit signals. This can be useful for traders seeking shorter-term trades or more agile trading strategies. Conversely, a longer signal line period, such as 9 or 14, smooths out the indicator and provides more stable signals. This may suit traders who prefer longer-term trends or a more conservative approach. Traders should consider their trading timeframe and the desired balance between responsiveness and stability when adjusting the signal line period.
The OBAD indicator can be applied in various trading strategies and scenarios. It helps traders identify potential trend reversals, confirm existing trends, and generate entry and exit signals. For example, when the OBAD histogram transitions from fuchsia to lime, it may suggest a shift from selling to buying pressure, signaling a potential buying opportunity. Traders can also use the OBAD indicator in conjunction with other technical analysis tools, such as trendlines or support/resistance levels, to confirm signals and make more informed trading decisions.
-- Trend Reversal Identification : The OBAD indicator can be useful in identifying potential trend reversals. When the OBAD values cross above the signal line after being below it, it may suggest a shift from bearish distribution to bullish accumulation. Conversely, when the OBAD values cross below the signal line after being above it, it may indicate a transition from bullish accumulation to bearish distribution. Traders can use these crossovers as potential signals to enter or exit trades in anticipation of a trend reversal.
-- Confirmation of Trend Strength : The OBAD indicator can act as a confirmation tool for assessing the strength of existing trends. When the OBAD values remain consistently above the signal line, it confirms the presence of strong bullish accumulation and validates the upward trend. Similarly, when the OBAD values stay consistently below the signal line, it confirms the presence of strong bearish distribution and validates the downward trend. Traders can use this confirmation to have more confidence in the prevailing trend and adjust their trading strategies accordingly.
-- Divergence Analysis : Divergence between the price and the OBAD indicator can provide valuable insights. Bullish divergence occurs when the price forms lower lows while the OBAD indicator forms higher lows, suggesting a potential trend reversal to the upside. Conversely, bearish divergence occurs when the price forms higher highs while the OBAD indicator forms lower highs, indicating a potential trend reversal to the downside. Traders can use these divergences as additional confirmation signals in their trading decisions.
-- Volume Analysis : The OBAD indicator incorporates volume data, making it particularly useful for volume analysis. Traders can analyze the relationship between OBAD values and volume levels to gauge the strength and validity of price movements. Higher OBAD values accompanied by higher volume can indicate strong accumulation or distribution, providing confirmation for potential trade setups. On the other hand, lower OBAD values accompanied by low volume may suggest a lack of participation and potentially signal caution in trading decisions.
It is important to note that the OBAD indicator, like any other technical indicator, has certain limitations. It relies on historical price and volume data, which may not always accurately reflect current market conditions or future price movements. Traders should exercise caution and use the OBAD indicator in conjunction with other analysis techniques and risk management strategies. Additionally, customization of the OBAD parameters, such as adjusting the length or volume factor, can provide flexibility to adapt the indicator to different market conditions and trading preferences.
Overall, the OBAD indicator serves as a valuable tool for traders to gauge the accumulation and distribution patterns in the market. Its calculation based on volume-weighted price movements and the coloration enhancements make it visually appealing and intuitive to interpret. By incorporating the OBAD indicator into trading strategies and considering its limitations, traders can potentially improve their decision-making process and enhance their trading outcomes.
Z-Score(Slope(OBV(LBC)))Summary : Market price is simply a dance of liquidity to the specific market.
tl;dr: "Cash come-in, market moon; Cash go-out, market doom"
In Simple Language : Large changes in the money flow to an asset often mark local price extremia.
Academic paper:
Title: Z-Score(Slope(OBV)): An Efficient Indicator for Identifying Local Extremes in Asset Prices
Abstract: This paper presents a novel trading indicator, Z-Score(Slope(OBV)), that aims to predict local extremes in asset prices by analyzing the patterns of money flow. The indicator is constructed using the Z-score of the slope of the On Balance Volume (OBV).
Hypothesis: The price levels at which the money flows into and out of an asset often mark local extremes. This notion underpins our exploration of the Z-Score(Slope(OBV)) indicator's potential in identifying these critical points.
1. On Balance Volume (OBV): The OBV is a momentum indicator that leverages the volume flow to forecast potential changes in asset prices. It operates on the premise that changes in volume often presage shifts in price. The OBV algorithm adds a period's volume to the cumulative total when the closing price is up and subtracts it when the closing price is down. Therefore, an ascending OBV suggests positive volume pressure, potentially heralding higher prices, while a declining OBV signifies negative volume pressure, possibly indicating lower prices.
2. Slope: In this context, the slope represents the rate of change of the OBV. It is a measure of the rise-over-run for a linear regression line through the OBV data points. By evaluating the slope of the OBV, we can extract valuable insights into the momentum of the volume. A positive slope indicates increasing volume momentum, suggesting growing interest in the asset, while a negative slope implies declining volume momentum, potentially reflecting dwindling interest.
3. Z-Score: The Z-score is a statistical measure that delineates a data point's relationship to the mean of a group of values, expressed in terms of standard deviations from the mean. For instance, a Z-score of 0 reveals that the data point's score aligns with the mean score. Positive Z-scores indicate values higher than the mean, and negative Z-scores represent values lower than the mean. Applying the Z-score to the slope of the OBV allows us to comprehend the degree of deviation of the current OBV slope from its historical mean.
A Z-score of 1 suggests that the OBV's slope is one standard deviation from the mean, which implies that the slope is within the range of values where approximately 68% (not 67%) of all values lie.
A Z-score of 2 implies that the slope is two standard deviations from the mean, thus within the range where roughly 95% of all values lie.
A Z-score of 3 indicates that the slope is three standard deviations from the mean, putting it within the range where about 99.7% of all values lie.
Z-scores of 4 and 5 and beyond are increasingly rare and represent extreme values.
4. The Z-Score(Slope(OBV)) Indicator and Line Break Chart Synergy: The Z-Score(Slope(OBV)) indicator's efficiency is further amplified when visualized using a Line Break chart. This chart type disregards time, concentrating solely on price changes, thus providing a clear visualization of market trends. When combined with the Line Break chart, the Z-Score(Slope(OBV(LBC))) indicator can help traders identify trend shifts more accurately and promptly, reinforcing the hypothesis that price levels where money flows into and out of an asset often mark local extremes.
In summary, the Z-Score(Slope(OBV)) indicator, combining volume, momentum, and statistical analysis, provides a robust tool for traders to predict local extremes in asset prices.
Regarding Implementation:
- This is implemented using Pinescript V5
- Uses inbuilt ta module
- Very effective and simple and efficient computation in 30 lines of code
Adjusted OBVThis script shows On-Balance Volume adjusted for volume weighted candle body size.
This means that the wick lengths, body length, and sell/buy pressure are calculated into percentages of volume that contributed to each.
The body volume is the accumulatively tracked across candles to give a more accurate On-Balance Volume that has been traded to achieve the current price over time.
The script output is in Orange and for comparison the original technical OBV is in Blue.
As this is my first script, I hope to update it to include a 'buy' and 'sell' pressure gauge to perhaps turn this from a mere indicator into potentially a bit more predictive.
In the meantime, it should be useful for tracking OBV for other uses in a more accurate and less volatile way.
Volume DockThis oscillator has two different modes:
The first one called RSIs is a comparison between the Relative strength index of the Accumulation/Distribution (and the On Balance Volume) and the normal price, to analyze the differences in momentum between the price with volume and without.
The second one, called Dock, is similar except for the fact that the lines are smoothed using the hull moving average formula, this mode is great to signal entries and for reversal analyzing.
