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Daily Volume Ratio Bands (20MA)

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Daily Volume Ratio Bands (20MA) — by CryptoDaily

This indicator normalizes daily trading volume against the recent 20-day moving average (20MA) and plots it as a volume ratio.
It allows traders to quickly identify whether current volume is strong, weak, or within a normal range compared to historical averages.


Key Features

Normalized volume ratio with 20-day average = baseline (1.0)

Clear bands for easy interpretation (1.0 ~ 1.3 = normal, above = overheated, below = weak)

Intuitive color coding:
🟨 Yellow: Normal range (1.0 ~ 1.3)
🔵 Blue: Above 1.3× average (high/strong volume, breakout confirmation)
⚪️ Gray: Below average (low volume)
🔴 Red: At or below 0.7× (extremely low volume / lack of interest)


How to Use

Breakouts with strong volume (Blue) → higher confidence in trend continuation

Gray/Red during consolidation → signal of weak momentum or sideways phase

Quickly assess whether the market is in overheated or low-activity conditions


Notes

Designed for Daily timeframe (1D) only. It will not function properly on intraday charts.

For educational purposes only. This is not financial advice.


Author

CryptoDaily (YouTube & TradingView)

YouTube channel: cryptodaily_tv

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.