OPEN-SOURCE SCRIPT
Volume & Price Counter
**User Guide for Volume & Price Counter (Candle Structure)**
### 1. Introduction to Volume & Price Counter
The **Volume & Price Counter** (Candle Structure) is a momentum analysis indicator that helps identify which side—buyers or sellers—is dominating the market by counting candles based on the combination of volume and price movement.
The indicator classifies candles into 4 groups:
- **Volume Up, Price Up (Vol ↑ & Price ↑)** – Indicates strong buying pressure.
- **Volume Down, Price Up (Vol ↓ & Price ↑)** – Price is rising but buying momentum is weakening.
- **Volume Up, Price Down (Vol ↑ & Price ↓)** – Indicates strong selling pressure.
- **Volume Down, Price Down (Vol ↓ & Price ↓)** – Price is falling but selling momentum is weakening.
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### 2. How the Indicator Works
The Volume & Price Counter calculates the number of each candle type over a specific time period to determine which side is currently in control:
- **Green Background**: When the total of (Vol ↑ & Price ↑) + (Vol ↓ & Price ↑) is greater than the total of (Vol ↑ & Price ↓) + (Vol ↓ & Price ↓) → Buyers are in control.
- **Red Background**: When the total of (Vol ↑ & Price ↓) + (Vol ↓ & Price ↓) is greater than the total of (Vol ↑ & Price ↑) + (Vol ↓ & Price ↑) → Sellers are in control.
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### 3. How to Use the Indicator in Trading
**a) When the background is green**:
- The market is in an uptrend; consider buying during pullbacks to support zones.
- If the green background continues and the number of (Vol ↑ & Price ↑) candles dominates, the price may continue to rise.
- If the green background is present but there are many (Vol ↓ & Price ↑) candles, be cautious as buying strength may be fading.
**b) When the background is red**:
- The downtrend is prevailing; it's better to stay out or look for selling opportunities during pullbacks.
- If the red background continues with a high number of (Vol ↑ & Price ↓) candles, the price may continue to fall.
- If there are many (Vol ↓ & Price ↓) candles during a red background, selling pressure may be weakening—watch for reversal signals.
**c) When the background shifts from red to green**:
- This is a positive signal, indicating buyers are returning to the market.
- Additional volume confirmation is needed to validate a true uptrend.
**d) When the background shifts from green to red**:
- This warns of a potential trend reversal to the downside.
- If volume spikes during the red shift, consider closing long positions.
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### 4. Combining Volume & Price Counter with Other Indicators
**Combine with support/resistance levels**:
If a green background appears at a strong support zone, it may signal a potential buying opportunity.
### 1. Introduction to Volume & Price Counter
The **Volume & Price Counter** (Candle Structure) is a momentum analysis indicator that helps identify which side—buyers or sellers—is dominating the market by counting candles based on the combination of volume and price movement.
The indicator classifies candles into 4 groups:
- **Volume Up, Price Up (Vol ↑ & Price ↑)** – Indicates strong buying pressure.
- **Volume Down, Price Up (Vol ↓ & Price ↑)** – Price is rising but buying momentum is weakening.
- **Volume Up, Price Down (Vol ↑ & Price ↓)** – Indicates strong selling pressure.
- **Volume Down, Price Down (Vol ↓ & Price ↓)** – Price is falling but selling momentum is weakening.
---
### 2. How the Indicator Works
The Volume & Price Counter calculates the number of each candle type over a specific time period to determine which side is currently in control:
- **Green Background**: When the total of (Vol ↑ & Price ↑) + (Vol ↓ & Price ↑) is greater than the total of (Vol ↑ & Price ↓) + (Vol ↓ & Price ↓) → Buyers are in control.
- **Red Background**: When the total of (Vol ↑ & Price ↓) + (Vol ↓ & Price ↓) is greater than the total of (Vol ↑ & Price ↑) + (Vol ↓ & Price ↑) → Sellers are in control.
---
### 3. How to Use the Indicator in Trading
**a) When the background is green**:
- The market is in an uptrend; consider buying during pullbacks to support zones.
- If the green background continues and the number of (Vol ↑ & Price ↑) candles dominates, the price may continue to rise.
- If the green background is present but there are many (Vol ↓ & Price ↑) candles, be cautious as buying strength may be fading.
**b) When the background is red**:
- The downtrend is prevailing; it's better to stay out or look for selling opportunities during pullbacks.
- If the red background continues with a high number of (Vol ↑ & Price ↓) candles, the price may continue to fall.
- If there are many (Vol ↓ & Price ↓) candles during a red background, selling pressure may be weakening—watch for reversal signals.
**c) When the background shifts from red to green**:
- This is a positive signal, indicating buyers are returning to the market.
- Additional volume confirmation is needed to validate a true uptrend.
**d) When the background shifts from green to red**:
- This warns of a potential trend reversal to the downside.
- If volume spikes during the red shift, consider closing long positions.
---
### 4. Combining Volume & Price Counter with Other Indicators
**Combine with support/resistance levels**:
If a green background appears at a strong support zone, it may signal a potential buying opportunity.
Script open-source
Dans l'esprit de TradingView, le créateur de ce script l'a rendu open-source, afin que les traders puissent examiner et vérifier sa fonctionnalité. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Script open-source
Dans l'esprit de TradingView, le créateur de ce script l'a rendu open-source, afin que les traders puissent examiner et vérifier sa fonctionnalité. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.