Tim Ord came up with the Ord Volume concept. The idea is similar to Weis Wave, except that where Weis Wave keeps a cumulative tab of each wave’s successive volume columns, Ord Volume tracks the wave's average volume.
Features
You can choose to distinguish the area’s colors when the average is rising/falling (default).
You can show an EMA of the wave averages, which is different than an EMA on raw volume.
You can show (default) the last wave’s ending average over the current wave, to help in comparing relative levels.
You can change the length of the trend that needs to be broken for a new wave to start, as well as the price used in trend detection.
Use Cases
As with Weis Wave, what I look at first are three characteristics of the waves: their length, height and slope. I then compare those to the corresponding price movements, looking for discrepancies. For example, consecutive bearish waves of equal strength associated with lesser and lesser price movements are often a good indication of an impeding reversal.
Because Ord Volume uses average rather than cumulative volume, I find it is often easier to distinguish what is going on during waves, especially exhaustion at the end of waves.
Note Being dependent on volume information as it is currently available in Pine, which does not include a practical way to retrieve delta volume information, the indicator suffers the same lack of precision as most other Pine-built volume indicators. For those not aware of the issue, the problem is that there is no way to distinguish the buying and selling volume (delta volume) in a bar, other than by looping through inside intervals using the security() function, which for me makes performance unsustainable in day to day use, while only providing an approximation of delta volume.
Notes de version
⋅
Added Marker 1 that triggers when the current wave's average volume breaches the previous wave's highest average volume.
You can show the previous wave's highest average volume.
You can create an alert on the marker.
Alerts You can define alerts on any combination of markers you configure. After defining the markers you want the alert to trigger on, make sure you are on the interval you want the alert to be monitoring at, then create the alert, select the indicator's name, use the default “Configured Markers” alert condition and choose your triggering window (usually “Once Per Bar Close”). Once the alert is created, you can change the indicator's inputs with no effect on the alert.
Whoa, it's amazing. I adjust a TrendReversalLength=3 for capture early sell signal, and it perform very well. Thanks so much
MartinWeb
⋅
thank you so much for the explanation. do you use it with "closed" source or did you also try hl2 or hlc3 settings? the waves look really different then. very interesting ;)
LucF
⋅
@MartinWeb, How sensitive you want the trend-detection logic to be will guide your choice of the source. `hl2` or `hlc3` are certainly valid options and should generate less chop. I mostly use `close` but will increase the period on noisier chart resolutions/markets.
Donajor8
⋅
I’m confused yet I want to understand the note the alert and how to use. I’m a noob
LucF
⋅
@Donajor8, To create an alert, you would typically check the "Marker 1" checkbox from the script's Settings/Inputs, then select one of the "Only Long Markers " or "Only Short Markers" if you only want one type to trigger the alert you will create. You will then see markers on your chart corresponding to those choices. Once that's done, you use ALT-A to create an alert, select the indicator from the first dropdown menu, then choose “Once Per Bar Close”, modify the alert's message as you wish, click OK and from thereon your alert will work with the selected parameters, on the symbol and timeframe that were active when you created the alert. You can create more than one alert if you want: one for shorts and one for longs, for example. See here for more information and just ask if it's not clear: tradingview.com/pine-script-docs/en/v4/annotations/Alert_conditions.html