OPEN-SOURCE SCRIPT

Kalman Volume Filter [ChartPrime]

The "Kalman Volume Filter", aims to provide insights into market volume dynamics by filtering out noise and identifying potential overbought or oversold conditions. Let's break down its components and functionality:

Settings:
  • Users can adjust various parameters to customize the indicator according to their preferences:
  • Volume Length: Defines the length of the volume period used in calculations.
  • Stabilization Coefficient (k): Determines the level of noise reduction in the signals.
  • Signal Line Length: Sets the length of the signal line used for identifying trends.
  • Overbought & Oversold Zone Level: Specifies the threshold levels for identifying overbought and oversold conditions.
  • Source: Allows users to select the price source for volume calculations.


Volume Zone Oscillator (VZO):
  • Calculates a volume-based oscillator indicating the direction and intensity of volume movements.
  • Utilizes a volume direction measurement over a specified period to compute the oscillator value.
  • Normalizes the oscillator value to improve comparability across different securities or timeframes.



Kalman Filter:
  • Applies a Kalman filter to smooth out the VZO values and reduce noise.
  • Utilizes a stabilization coefficient (k) to control the degree of smoothing.
  • Generates a filtered output representing the underlying volume trend.



Volume Visualization:
  • Displays the volume histogram, with color intensity indicating the strength of volume movements.
  • Adjusts bar colors based on volume bursts to highlight significant changes in volume.

snapshot

Overbought and Oversold Zones:
Marks overbought and oversold levels on the chart to assist in identifying potential reversal points.
snapshot

Plotting:
  • Plots the Kalman Volume Filter line and a signal line for visual analysis.
  • Utilizes different colors and fills to distinguish between rising and falling trends.
  • Highlights specific events such as local buy or sell signals, as well as overbought or oversold conditions.

snapshot

This indicator provides traders with a comprehensive view of volume dynamics, trend direction, and potential market turning points, aiding in informed decision-making during trading activities.
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Script open-source

Dans le plus pur esprit TradingView, l'auteur de ce script l'a publié en open-source, afin que les traders puissent le comprendre et le vérifier. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais la réutilisation de ce code dans une publication est régie par nos Règles. Vous pouvez le mettre en favori pour l'utiliser sur un graphique.

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