NET BSP derived from Buying & Selling Pressure which is a volatility indicator that monitors average metrics of green and red candles separately. We could navigate more confidently through market with projected market balance. tradingview.com/script/D9lPur6c-Buying-Selling-Pressure/ BSP allowed us to track and analyze the ongoing performance of bullish and bearish impulsive waves and their corrections.
Due to unintuitive way of measuring decline with SP going up, I decided to remake it into more intuitive version with better precision. When we encounter the fall it's better to have declining values of tool to be able to cover it visually with ease. One of the solutions was to create a sense of balance of Buying Pressure against Selling Pressure. Since we are oriented by growth, it'd be more logical to summarize the market balance with BP - SP Comparison: When Buying and Selling Pressure are equal, NET BSP would be at 0.
NETBSP > 0 and NETBSP > NETBSP[1] = 🟢
NETBSP > 0 and NETBSP < NETBSP[1] = 🟡
NETBSP < 0 and NETBSP < NETBSP[1] = 🔴
NETBSP < 0 and NETBSP > NETBSP[1] = 🟡
Hence, we get visualized stages of uptrends and downtrends which allows to evaluate chances and estimations of upcoming counter-waves. Also, it is worth to note that output clearly shows how one wave is derived from another in terms of sizing. Feel free to adjust NET BSP arguments to adapt sensitivity to the timeframe you're working on.
Notes de version
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Added tracking price to refer to history and summarized the formula considering wicks.
Notes de version
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Credits to @ReallyMe for pointing vital issue in the comments. With this new script we can use different types of MA's. Default is set to HMA because it groups well the NORMAL candlesticks and is reactive even with 24 argument. Change to SMA or EMA when it comes to dealing with HA candles.
Notes de version
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Changed appearance to wavelike function for intuitive perception
@EastGackle, i agree, whats important is to apply it. what stocks are you planning to try it out with?
ffeizian
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one of a kind work, keep it up
ReallyMe
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Thanks for sharing, great stuff! Question: The indicator draws different patterns depending on whether you set classic "Candles" or "Heikin Ashi" on the main chart. Is this the way it is supposed to be? The latter is less erratic because the candles are, of course, already "pre-smoothed". But these are then no longer the real price data with open, close, high, low, but the modified ones. What is the intended way of using it?
fract
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@ReallyMe, it is grouped better with HE. However, it far doesn't yet mean it's useless for normal candles. 1D 6h 2h 15m Why not try learning by experience instead of external instructions. For example try to be creative and compare with your existing setup of indicators. I made this thing is to be straight forward and self-evident. Thanks BTW. I appreciate your interest.
ReallyMe
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@fract, I didn't want external instructions, was just curious how it was intended and if I understood it correctly. I probably did phrase something wrong in my question, wasn't meant as an attack. Of course, we all learn first and foremost through our own experience. Thanks
fract
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@ReallyMe, Look at the end of the code where alert conditions are.