SPY Volume Weighted Close

7 août 2022

Hey everyone!
Deciding to make this indicator public and open access.

This is a volume weighted close indicator for SPY. It is a statistics based indicator.

How it works:

It uses volume data mixed with some price action data to prospectively predict where SPY's price will close within a 30 minute interval.

As such, its different from other indicators in the sense that its not reactive, it proactive and actively predicts the price that SPY will see within the next 30 minutes and where SPY will most likely close at.

It has 3 bands. The main centre band (blue, but colour can be changed) is the most likely price that SPY will close at within the next 30 minutes.

The Upper Level Confidence and Lower Level Confidence bands are the expected range that the analysis thinks SPY will remain confined in based on current volume and price action.

How to Use it:

I personally use this in place of VWAP, but the applications are infinite. Take a look at the chart below:






Applications:

This is specifically programmed for SPY but I have used it with other stocks such as QQQ, UPRO and DIA. However, using it with those stocks, the upper and lower confidence bands are not helpful. But YMMV with other stocks. This is specifically designed for SPY.


Let me know your questions and thoughts!

Thanks for reading and checking this out!

10 déc. 2022

Notes de version

Revised version!

Revisions:
- Formatted in a cloud style
- Updated the calculations
- Added segments to identify high volume and low volume areas, high volume areas get shaded in yellow and low volume areas get shaded in blue
- Adapted to be used with Heikin Ashi. I know many trader like myself like to use Heikin charts, this is now compatible with Heikin Ashi.

Otherwise, the functionality remains the same, you can turn all of the added features off and just use it as similar to the old version as well.

For a walkthrough tutorial, here is a video: