Z-HistogramIt is possible to approximate the underlying distribution of a random variable by using what is called an "Histogram". In order to construct an histogram one must first split the data into several intervals (also called bins) often of the same size and count the number of values falling within each intervals, the histogram plot is then constructed with the X axis representing the measured variable and the Y axis representing the frequency.
The proposed script aim to estimate the underlying distribution of a rolling z-score by constructing its histogram, here the histogram consist of 13 bins of width 0.5 rolling standard deviations. The length setting define the rolling z-score period, the window setting define the number of past data to be counted, finally using the "Total" option (true by default) will count all the rolling z-scores values since the first bar, in order to use the window setting make sure to uncheck the "Total" option.
DISPLAY
In order to see the entirety of the histogram make sure to double click on the indicator window and to have all the lower panels (text notes, pine editor...etc) hidden, finally make sure to zoom-in in order to see the frequency numbers displayed.
Z-Histogram on BTCUSD 15 min TF, the blue bins represent intervals situated over 0 while red bins represent intervals situated under 0. Here σ represent the X-axis in standard deviations, the histogram start with a bin situated at σ = -3 which count the number of times the rolling z-score was within -3 and -2.5, the histogram end with the bin situated at σ = 3 which count the number of time the rolling z-score was within 3 and 3.5.
It is also possible to look at the shape of the histogram without having the indicator window at full size.
INTERPREATION
An histogram can give really interesting information such as overall trend direction and strength. The direction can be measured by looking at the skewness of the histogram, with a negative skewness (the peak of the histogram situated at the right from the center) representing down-trending variations and positive skewness (the peak of the histogram situated at the left from the center) representing up-trending variations, while a symmetrical histogram could represent a ranging market. The farther away the peak of the histogram is situated from the center, the stronger the trend.
Another interesting characteristic is the tailedness of the histogram, which can give information about the cleanliness of the trend, for example a positive skew and high tailedness would represent a clean up-trend, as it could suggest less variations contrary to the main trend.
An histogram applied to the rolling z-score can give various useful information. As a recall the rolling z-score of the price measure the distance between the closing price and its moving average in term of rolling standard deviations, for example if the rolling z-score is equal to 2 it means that the closing price is currently 2 rolling standard deviations over its moving average.
Lets for example analyze the histogram using INTC 15 min tf with a window of 456 bars and rolling z-score of length = 100 in order to review longer term variations.
We can see from the histogram that the uptrend visible on the chart is represented by the bins situated over 0 having an overall higher frequency than the bins under 0, we can see that the closing price tended to stay between 1 and 1.5 rolling standard deviations over its period 100 moving average. Here bins under 0 accounts for retracements in the trend.
IN SUMMARY
An histogram can give various information regarding the price evolution of a security, the proposed script aim to plot the histogram of a rolling z-score. Now this script might not be too useful but it was fun to make, also it does not mean that an histogram is not an useful tool in the context of trading, the only thing required is a god implementation of it (like volume profiles for example)
In this post we have also reviewed some important statistical concepts such as distributions, z-score, skewness and tailedness, each being extremely important in the quantitative trading field.
Thx for reading !
Recherche dans les scripts pour "volume profile"
Patient Trendfollower (7)(alpha) Backtesting AlgorithmThis is an alpha version of backtesting algorithm for my Patient Trendfollower (7) strategy. It can help you adapt the indicator to other charts than EURUSD. Please bear in mind that price action, volume profiles and supzistences are a catalyst for successful trading, not an indicator. You can get significantly better results if you use these things in your trading and use Trendfollower only as a secondary tool.
Patient Trendfollower Indicator
Thanks belongs to @everget and Satik FX, their contributions are highlighted on an indicator page.
Delta Volume Columns [LucF]Displays delta volume columns using intrabar volume information. Each volume column is divided into three sections: buying, selling and neutral volume. Volume for each section is determined from the volume and price movement of each intrabar at a user-selected lower resolution.
Features include:
- Choice of color themes for either dark or light chart backgrounds
- Delta volume columns
- Volume Balance displayed as the difference between the MAs of buying and selling volume
- Display of divergences between a bar’s volume balance and the bar’s price movement (example: buying volume > selling volume but close < open). Divergences can be shown in 2 different color schemes (including green/red showing a tentative direction), on volume columns and/or on chart bars
- Display of bar by bar volume balance with highlighting of above average volume
- Display of the usual total volume MA
- Choice of the lower resolution used to retrieve intrabar information
- Alerts configurable on any combination of the markers, with control over long/short direction
- Choice of 3 different markers:
1. Double bumps: two consecutive bars where buying or selling volume is in the same direction and where volume > volume MA
2. Divergence confirmations: direction of the price bar following a price/volume balance divergence
3. Volume balance shifts: zero level crossings of the volume balance MA delta
The chart shows the two main modes of display:
- Top pane : shows the stacked volume columns with divergences in orange and the flattened volume balance MAs delta at the bottom of the volume columns. This volume balance is the same shown in the bottom pane. The top pane also shows the instant volume balance strip above the volume columns. The strip’s colors show which of the buying or selling volume was greater, and colors are brighter if the total volume was above the total volume MA.
- Bottom pane : shows the volume balance MAs delta with markers 1 and 2. Given that this graphic has no price momentum component, I find quite eerie how it often looks like a momentum-based signal.
The default 5 minute intrabar resolution is used in combination with the weekly chart, which is excessive.
This script uses a special characteristic of the security() function’s behavior when it is sent to a resolution lower than the chart’s resolution. Details are given in the script’s comments. This method has the advantage of working under more circumstances than some of the other loop-based methods, but it also has its limits.
IMPORTANT
This is what you need to know:
- The method used does not work on the realtime bar—only on historical bars. Consequently, the volume column shown on the realtime bar is a normal volume column plotted in green or red, following price movement. The column will only show delta volume information after it closes and becomes a historical bar.
- The indicator only works on some chart resolutions: 5, 10, 15 and 30 minutes, 1, 2, 4, 6, and 12 hours, 1 day, 1 week and 1 month. The script’s code can be modified to run on other resolutions, but chart resolutions must be divisible by the lower resolution used for intrabars.
- Intrabar resolutions can be selected from 1, 5, 15, 30, 45 minutes, 1, 2, 3, 4 hours, 1 day, 1 week and 1 month. The intrabar resolution must of course be smaller than the chart’s resolution.
- Contrary to my other indicators where alerts must be configured to trigger “Once Per Bar Close” in order to avoid false triggers (or repainting), all this indicator’s alerts are designed to trigger using previous bar information since the indicator’s calculations in the realtime bar are not exact. Markers are not plotted with a negative offset; they appear at the beginning of the realtime bar following confirmation of the marker’s condition on the previous bar. Alerts for this indicator should thus be configured to trigger “Once Per Bar” so they trigger at the beginning of the realtime bar. Note that the penalty is not that great, as it is simply the instant between the close of the previous realtime bar and the opening of the next. The advantage of using this technique is that the indicator does not repaint; a marker that appears at the beginning of the realtime bar will never disappear.
- The script only plots information that is reliable in the realtime bar, i.e., total volume and markers. All other plots are set to n/a to prevent misleading traders.
- When the difference between the chart’s resolution and the lower resolution is too important, volume columns will not calculate for all bars in the dataset.
On Delta Volume
Buying or selling volume are misnomers, as every unit of volume transacted is both bought and sold by 2 different traders. There is no such thing as “buy only” or “sell only” volume, but trader lingo is riddled with original fabulations.
Without access to order book information, traders work with the assumption that when price moves up during a bar, there was more buying pressure than selling pressure. The built-in volume indicator available on TradingView uses this logic to color the volume columns green or red. While this script’s numbers are more precise because it analyses a number of intrabars to calculate its information, it uses the exact same imperfect logic to calculate its buying/selling/neutral sections.
Until Pine scripts can have access to how much volume was transacted at the bid/ask prices, our so-called buying/selling volume information will always be a mere proxy.
Divergences
You may wonder how there can be divergences between buying/selling volume information and price movement. This will sometimes be due to the methodology’s shortcomings we have just discussed, but divergences may also occur in instances where because of order book structure, it takes less volume to increase the price of an asset than it takes to decrease it.
As usual, divergences are points of interest because they reveal imbalances, which may or may not become turning points. I do not share the overwhelming enthusiasm traders have for divergences. To your pattern-hungry brain, the orange bars this indicator shows on chart will—as divergences on other indicators do–appear to often indicate turnarounds. My opinion is that reality is generally quite sobering, as many who have tried building automated rules based on divergences will tell you. I do not have hard numbers on the lack of performance of divergences—only many failed attempts to make them perform, which a few experienced strategy modelers I know share with me. Please don’t try to read too much into them. While they look great on past data, I find they are often difficult to use in realtime to make bets with good odds.
Thanks to:
- A guy called Kuan who commented on a Backtest Rookies presentation of an intrabar delta volume indicator using a for loop. The heart of “my” indicator is code borrowed from Kuan; I just built a hopefully useful wrapper around it.
- @theheirophant, my partner in the exploration of the sometimes weird abysses of security() ’s behavior at lower resolutions.
moving quantilesAlways works... Just kidding, indicates moving quantiles. Something between volume profiles and moving averages.
Bondar Drive v2.1Title: Bondar Drive v2.1 — Real-time print and delta tick volume visualization
Description:
Bondar Drive v2.1 is a tool for visualizing real-time order flow data. It highlights price movements and volume deltas in an intuitive, easy-to-read format. Indicator can be used in conjunction with the Anchored Volume Profile and Volume Footprint (Type: Total).
Features:
Real-Time Print Visualization:
Displays order flow prints with delta colors for buy/sell dominance.
Adjustable size and transparency for varying order thresholds.
Volume Delta Analysis:
Categorizes orders into Tiny, Small, Session, Large, and Huge based on user-defined thresholds.
Provides a tooltip showing order time and price.
Customizable Time Range:
Keeps prints visible for a specified duration (in seconds).
Flexible User Inputs:
Adjustable time zones, print sizes, starting bar index, and volume thresholds.
Visual Enhancements:
Line connections between prints show progression of orders and market direction.
How It Works:
The indicator gathers volume delta and price data in real time.
It dynamically displays circular labels with varying sizes and colors, reflecting the size and type of orders. Labels and lines are automatically removed after the specified time range, ensuring a clean and uncluttered chart.
Customization Options:
Number of Prints: Control how many prints are displayed.
Order Size Filters: Exclude small trades to highlight significant orders.
Color Options: Customize print colors, text, and connecting lines.
Time Offset: Adjust for your local time zone.
Use Cases:
Identify order flow imbalances and price levels dominated by buyers or sellers.
Track the progression of large orders for better trade execution.
Spot market reversals and momentum shifts using real-time prints and delta.
Price Action UltimateThe Price Action Ultimate indicator is an innovative tool designed to provide traders with a comprehensive view of price action based on either volume or touches. By default, the indicator displays touches, offering a unique perspective on price levels that have been frequently interacted with by the market.
At its core, the indicator divides the price range of a specified lookback period into a number of rows (default 25). For each row, it calculates either the volume traded or the number of times the price touched that level. This data is then visualized in two ways: as a histogram and as horizontal lines on the chart.
The histogram, displayed on the right side of the chart, represents the distribution of touches (or volume) across different price levels. Each bar in the histogram shows the number of touches and the percentage of total touches for that price level. The color of the bars ranges from a user-defined low activity color to a high activity color, providing a quick visual reference for the most active price levels.
The horizontal lines drawn across the chart represent the most significant levels based on touches (or volume). By default, the indicator displays the top 3 levels, but this can be adjusted. The thickness of these lines corresponds to the relative importance of each level - thicker lines indicate more touches or higher volume. This feature allows traders to quickly identify key support and resistance levels based on historical price action.
One of the most innovative aspects of this indicator is the option to fade older levels over time. When enabled, this feature gradually increases the transparency of lines as they age, with newer levels appearing more prominently. This helps traders focus on the most recent and relevant price action while still maintaining awareness of older, potentially significant levels.
The indicator offers flexibility in its display options. Users can choose to show levels based on volume, touches, or both. This allows traders to compare and contrast different perspectives on price action. Additionally, the indicator includes options to display a volume profile and a background fill for the analysis range, further enhancing its visual appeal and informational content.
What makes this indicator particularly valuable is its ability to provide a clear, uncluttered view of key price levels without relying on complex calculations or multiple indicators. It distills price action down to its essence - where price has spent the most time or where the most trading activity has occurred. This can be incredibly useful for identifying potential support and resistance levels, areas of consolidation, or possible breakout points.
For traders focused on price action strategies, this indicator offers a powerful tool to enhance their analysis. It provides a data-driven approach to identifying significant price levels, which can be used to inform entry and exit decisions, set stop losses, or anticipate potential market reactions.
This indicator is a tool to aid in market analysis and should not be used as the sole basis for trading decisions. Always combine multiple forms of analysis and practice proper risk management when trading. Past performance does not guarantee future results.
Uptrick: Market MoodsThe "Uptrick: Market Moods" indicator is an advanced technical analysis tool designed for the TradingView platform. It combines three powerful indicators—Relative Strength Index (RSI), Average True Range (ATR), and Bollinger Bands—into one cohesive framework, aimed at helping traders better understand and interpret market sentiment. By capturing shifts in the emotional climate of the market, it provides a holistic view of market conditions, which can range from calm to stressed or even highly excited. This multi-dimensional analysis tool stands apart from traditional single-indicator approaches by offering a more complete picture of market dynamics, making it a valuable resource for traders looking to anticipate and react to changes in market behavior.
The RSI in the "Uptrick: Market Moods" indicator is used to measure momentum. RSI is an essential component of many technical analysis strategies, and in this tool, it is used to identify potential market extremes. When RSI values are high, they indicate an overbought condition, meaning the market may be approaching a peak. Conversely, low RSI values suggest an oversold condition, signaling that the market could be nearing a bottom. These extremes provide crucial clues about shifts in market sentiment, helping traders gauge whether the current emotional state of the market is likely to result in a reversal. This understanding is pivotal in predicting whether the market is transitioning from calm to stressed or from excited to overbought.
The Average True Range adds another layer to this analysis by offering insights into market volatility. Volatility is a key factor in understanding the mood of the market, as periods of high volatility often reflect high levels of excitement or stress, while low volatility typically indicates a calm, steady market. ATR is calculated based on the range of price movements over a given period, and the higher the value, the more volatile the market is. The "Uptrick: Market Moods" indicator uses ATR to dynamically gauge volatility levels, helping traders understand whether the market is currently moving in a way that aligns with its emotional mood. For example, an increase in ATR accompanied by an RSI value that indicates overbought conditions could suggest that the market is in a highly excited state, with the potential for either strong momentum continuation or a sharp reversal.
Bollinger Bands complement these tools by providing visual cues about price volatility and the range within which the market is likely to move. Bollinger Bands plot two standard deviations away from a simple moving average of the price. This banding technique helps traders visualize how far the price is likely to deviate from its average over a certain period. The "Uptrick: Market Moods" indicator uses Bollinger Bands to establish price boundaries and identify breakout conditions. When prices break above the upper band or below the lower band, it often signals that the market is either highly stressed or excited. This breakout condition serves as a visual representation of the market mood, alerting traders to moments when prices are moving beyond typical ranges and when significant emotional shifts are occurring in the market.
Technically, the "Uptrick: Market Moods" indicator has been developed using TradingView’s Pine Script language, a highly efficient language for building custom indicators. It employs functions like ta.rsi, ta.atr, and ta.sma to perform the necessary calculations. The use of these built-in functions ensures that the calculations are both accurate and efficient, allowing the indicator to operate in real-time without lagging, even in volatile market conditions. The ta.rsi function is used to compute the Relative Strength Index, while ta.atr calculates the Average True Range, and ta.sma is used to smooth out price data for the Bollinger Bands. These functions are applied dynamically within the script, allowing the "Uptrick: Market Moods" indicator to respond to changes in market conditions in real time.
The user interface of the "Uptrick: Market Moods" indicator is designed to provide a visually intuitive experience. The market mood is color-coded on the chart, making it easy for traders to identify whether the market is calm, stressed, or excited at a glance. This feature is especially useful for traders who need to make quick decisions in fast-moving markets. Additionally, the indicator includes an interactive table that updates in real-time, showing the most recent mood state and its frequency. This provides valuable statistical insights into market behavior over specific time frames, helping traders track the dominant emotional state of the market. Whether the market is in a prolonged calm state or rapidly transitioning through moods, this real-time feedback offers actionable data that can help traders adjust their strategies accordingly.
The RSI component of the "Uptrick: Market Moods" indicator helps detect the speed and direction of price movements, offering insight into whether the market is approaching extreme conditions. By providing signals based on overbought and oversold levels, the RSI helps traders decide whether to enter or exit positions. The ATR element acts as a volatility gauge, dynamically adjusting traders’ expectations in response to changes in market volatility. Meanwhile, the Bollinger Bands help identify trends and potential breakout conditions, serving as an additional confirmation tool that highlights when the price has moved beyond normal boundaries, indicating heightened market excitement or stress.
Despite the robust capabilities of the "Uptrick: Market Moods" indicator, it does have limitations. In markets affected by sudden shifts, such as those driven by major news events or external economic factors, the indicator’s performance may not always be reliable. These external factors can cause rapid mood swings that are difficult for any technical analysis tool to fully anticipate. Additionally, the indicator’s complexity may pose a learning curve for novice traders, particularly those who are unfamiliar with the concepts of RSI, ATR, and Bollinger Bands. However, with practice, traders can become proficient in using the tool to its full potential, leveraging the insights it provides to better navigate market shifts.
For traders seeking a deeper understanding of market sentiment, the "Uptrick: Market Moods" indicator is an invaluable resource. It is recommended for those dealing with medium to high volatility instruments, where understanding emotional shifts can offer a strategic advantage. While it can be used on its own, integrating it with other forms of analysis, such as fundamental analysis and additional technical indicators, can enhance its effectiveness. By confirming signals with other tools, traders can reduce the likelihood of false signals and improve their overall trading strategy.
To further enhance the accuracy of the "Uptrick: Market Moods" indicator, it can be integrated with volume-based tools like Volume Profile or On-Balance Volume (OBV). This combination allows traders to confirm the moods identified by the indicator with volume data, providing additional confirmation of market sentiment. For example, when the market is in an excited mood, an increase in trading volume could reinforce the reliability of that signal. Conversely, if the market is stressed but volume remains low, traders may want to proceed with caution. Using multiple indicators together creates a more comprehensive trading approach, helping traders better manage risk and make informed decisions based on multiple data points.
In conclusion, the "Uptrick: Market Moods" indicator is a powerful and unique addition to the suite of technical analysis tools available on TradingView. It provides traders with a multi-dimensional view of market sentiment by combining the analytical strengths of RSI, ATR, and Bollinger Bands into a single tool. Its ability to capture and interpret the emotional mood of the market makes it an essential tool for traders seeking to gain an edge in understanding market behavior. While the indicator has certain limitations, particularly in rapidly shifting markets, its ability to provide real-time insights into market sentiment is a valuable asset for traders of all experience levels. Used in conjunction with other tools and sound trading practices, the "Uptrick: Market Moods" indicator offers a comprehensive solution for navigating the complexities of financial markets.
nPOC Levels by Tyler### Explanation of the Pine Script
This Pine Script identifies and displays weekly naked Points of Control (nPOCs) on a TradingView chart. An nPOC represents a Point of Control (POC) from a previous week that has not been revisited by price action in subsequent weeks. These nPOCs are extended to the right as horizontal lines, indicating potential support or resistance levels.
#### Script Overview
1. **Indicator Declaration:**
```pinescript
//@version=5
indicator("Weekly nPOCs", overlay=true)
```
- The script is defined as a version 5 Pine Script.
- The `indicator` function sets the script's name ("Weekly nPOCs") and specifies that the indicator should be overlaid on the price chart (`overlay=true`).
2. **Function to Calculate POC:**
```pinescript
f_poc(_hl2, _vol) =>
var float vol_profile = na
if (na(vol_profile))
vol_profile := array.new_float(100, 0.0)
_bin_size = (high - low) / 100
for i = 0 to 99
if _hl2 >= low + i * _bin_size and _hl2 < low + (i + 1) * _bin_size
array.set(vol_profile, i, array.get(vol_profile, i) + _vol)
max_volume = array.max(vol_profile)
poc_index = array.indexof(vol_profile, max_volume)
poc_price = low + poc_index * _bin_size + _bin_size / 2
poc_price
```
- The function `f_poc` calculates the Point of Control (POC) for a given period.
- It takes two parameters: `_hl2` (the average of the high and low prices) and `_vol` (volume).
- A volume profile array (`vol_profile`) is initialized to store volume data across different price bins.
- The price range between the high and low is divided into 100 bins (`_bin_size`).
- The function iterates over each bin, accumulating the volumes for prices within each bin.
- The bin with the maximum volume is identified as the POC (`poc_price`).
3. **Variables to Store Weekly Data:**
```pinescript
var float poc = na
var float prev_poc = na
var line poc_lines = na
if na(poc_lines)
poc_lines := array.new_line(0)
```
- `poc` stores the current week's POC.
- `prev_poc` stores the previous week's POC.
- `poc_lines` is an array to store lines representing nPOCs. The array is initialized if it is `na` (not initialized).
4. **Calculate Weekly POC:**
```pinescript
is_new_week = ta.change(time('W')) != 0
if (is_new_week)
prev_poc := poc
poc := f_poc(hl2, volume)
if not na(prev_poc)
line new_poc_line = line.new(x1=bar_index, y1=prev_poc, x2=bar_index + 100, y2=prev_poc, color=color.red, width=2)
label.new(x=bar_index, y=prev_poc, text="nPOC", style=label.style_label_down, color=color.red, textcolor=color.white)
array.push(poc_lines, new_poc_line)
```
- `is_new_week` checks if the current bar is the start of a new week using the `ta.change(time('W'))` function.
- If it's a new week, the previous week's POC is stored in `prev_poc`, and the current week's POC is calculated using `f_poc`.
- If `prev_poc` is not `na`, a new line (`new_poc_line`) representing the nPOC is created, extending it to the right (for 100 bars).
- A label is created at the `prev_poc` level, marking it as "nPOC".
- The new line is added to the `poc_lines` array.
5. **Remove Old Lines:**
```pinescript
if array.size(poc_lines) > 52
line.delete(array.shift(poc_lines))
```
- This section ensures that only the last 52 weeks of nPOCs are kept to avoid cluttering the chart.
- If the `poc_lines` array contains more than 52 lines, the oldest line is deleted using `array.shift`.
6. **Plot the Current Week's POC as a Reference:**
```pinescript
plot(poc, title="Current Weekly POC", color=color.blue, linewidth=2, style=plot.style_line)
```
- The current week's POC is plotted as a blue line on the chart for reference.
#### Summary
This script calculates and identifies weekly Points of Control (POCs) and marks them as nPOCs if they remain untouched by subsequent price action. These nPOCs are displayed as horizontal lines extending to the right, providing traders with potential support or resistance levels. The script also manages the number of lines plotted to maintain a clear and uncluttered chart.
PVSRA Candles Auto OverrideWhat does this “PVSRA Candles Auto Override” Indicator
do?
This indicator automates PVSRA analysis for crypto traders. It finds the corresponding Binance Perpetual Futures chart for the current instrument, then replaces the current chart's volume profile with the perpetual futures data (if available) to ensure the PVSRA calculation uses the most relevant volume. This not only reduces human error during market scans but also automatically selects the appropriate Binance Perpetual Futures contract, saving time and improving the accuracy of PVSRA calculations.
How can a trader use this indicator?
This helps the trader to identify if there is volume data available in an equivalent Binance Perpetual Futures chart and automatically displays it, making it easier to switch coins whilst viewing the market. Why do we want to use Binance Perpetual Futures Volume? In most markets Binance volume surpasses those of other crypto exchanges so this will give us a better view on the volume spikes in the market.
What is PVSRA and how can I trade using this indicator?
PVSRA candles are a type of candlestick chart formatting. PVSRA stands for Price, Volume, Support and Resistance Analysis.
Here's a breakdown of what PVSRA candles aim to achieve:
Combine multiple factors: They take into account price movement, trading volume, and support and resistance levels to identify potential trading opportunities.
Highlight potential imbalances: By color-coding candles based on PVSRA analysis, they aim to show areas of high volume activity, potentially representing imbalances created by market makers (large institutions that influence price).
Identify areas of revisit: The theory is that these high-volume zones may be revisited by the market in the future, as there's "unrecovered liquidity" in those areas.
Usage of the Indicator:
By default the indicator will automatically use the Equivalent Binance Perpetual Chart for the Data
You can override the symbol manually if you what to view another instrument’s data.
CVD Divergence Strategy.1.mmThis is the matching Strategy version of Indicator of the same name.
As a member of the K1m6a Lions discussion community we often use versions of the Cumulative Volume Delta indicator
as one of our primary tools along with RSI, RSI Divergences, Open interest, Volume Profile, TPO and Fibonacci levels.
We also discuss visual interpretations of CVD Divergences across multiple time frames much like RSI divergences.
RSI Divergences can be identified as possible Bullish reversal areas when the RSI is making higher low points while
the price is making lower low points.
RSI Divergences can be identified as possible Bearish reversal areas when the RSI is making lower high points while
the price is making higher high points.
CVD Divergences can also be identified the same way on any timeframe as possible reversal signals. As with RSI, these Divergences
often occur as a trend's momentum is giving way to lower volume and areas when profits are being taken signaling a possible reversal
of the current trending price movement.
Hidden Divergences are identified as calculations that may be signaling a continuation of the current trend.
Having not found any public domain versions of a CVD Divergence indicator I have combined some public code to create this
indicator and matching strategy. The calculations for the Cumulative Volume Delta keep a running total for the differences between
the positive changes in volume in relation to the negative changes in volume. A relative upward spike in CVD is created when
there is a large increase in buying vs a low amount of selling. A relative downward spike in CVD is created when
there is a large increase in selling vs a low amount of buying.
In the settings menu, the is a drop down to be used to view the results in alternate timeframes while the chart remains on current timeframe. The Lookback settings can be adjusted so that the divs show on a more local, spontaneous level if set at 1,1,60,1. For a deeper, wider view of the divs, they can be set higher like 7,7,60,7. Adjust them all to suit your view of the divs.
To create this indicator/strategy I used a portion of the code from "Cumulative Volume Delta" by @ contrerae which calculates
the CVD from aggregate volume of many top exchanges and plots the continuous changes on a non-overlay indicator.
For the identification and plotting of the Divergences, I used similar code from the Tradingview Technical "RSI Divergence Indicator"
This indicator should not be used as a stand-alone but as an additional tool to help identify Bullish and Bearish Divergences and
also Bullish and Bearish Hidden Divergences which, as opposed to regular divergences, may indicate a continuation.
CVD Divergence Indicator.1.mmAs a member of the K1m6a Lions discussion community we often use versions of the Cumulative Volume Delta indicator
as one of our primary tools along with RSI, RSI Divergences, Open interest, Volume Profile, TPO and Fibonacci levels.
We also discuss visual interpretations of CVD Divergences across multiple time frames much like RSI divergences.
RSI Divergences can be identified as possible Bullish reversal areas when the RSI is making higher low points while
the price is making lower low points.
RSI Divergences can be identified as possible Bearish reversal areas when the RSI is making lower high points while
the price is making higher high points.
CVD Divergences can also be identified the same way on any timeframe as possible reversal signals. As with RSI, these Divergences
often occur as a trend's momentum is giving way to lower volume and areas when profits are being taken signaling a possible reversal
of the current trending price movement.
Hidden Divergences are identified as calculations that may be signaling a continuation of the current trend.
Having not found any public domain versions of a CVD Divergence indicator I have combined some public code to create this
indicator and matching strategy. The calculations for the Cumulative Volume Delta keep a running total for the differences between
the positive changes in volume in relation to the negative changes in volume. A relative upward spike in CVD is created when
there is a large increase in buying vs a low amount of selling. A relative downward spike in CVD is created when
there is a large increase in selling vs a low amount of buying.
In the settings menu, the is a drop down to be used to view the results in alternate timeframes while the chart remains on current timeframe. The Lookback settings can be adjusted so that the divs show on a more local, spontaneous level if set at 1,1,60,1. For a deeper, wider view of the divs, they can be set higher like 7,7,60,7. Adjust them all to suit your view of the divs.
To create this indicator/strategy I used a portion of the code from "Cumulative Volume Delta" by @ contrerae which calculates
the CVD from aggregate volume of many top exchanges and plots the continuous changes on a non-overlay indicator.
For the identification and plotting of the Divergences, I used similar code from the Tradingview Technical "RSI Divergence Indicator"
This indicator should not be used as a stand-alone but as an additional tool to help identify Bullish and Bearish Divergences and
also Bullish and Bearish Hidden Divergences which, as opposed to regular divergences, may indicate a continuation.
Heat profileA trader once told me that top wicks equals sell interest and bottom wicks equals buy interest. If that's true then this indicator tries to organize and visualize this idea.
It uses transparent boxes to give the impression of a heat map. Due to limitations of my own skill and possibly pinescript it is not possible to render it in a useful manner using different colors that depicts buy and sell interests respectively. This means it works more like a volume profile in that it mixes the buy and sell interest together in the heat map. This can still be helpful because it help traders focus their attention on areas other than the current price candle.
In my limited time of using it, it seems like on the large timeframes the highlighted areas is where the price wants to go, and on small time frames the darkest areas is where the price wants to go. But i will leave it up to any user to spot and use their own patterns with the indicator.
Last but not least, the indicator only uses the last 50 candles, which can be too little on a small timeframe. Unfortunately the way i have done it this limitation is hardcoded in the script due to how pinescript works, by editing the code you can increase it. (Put max_boxes_count = x after overlay = true. Maximum number is 500)
Hope you enjoy. Have a nice day.
PhantomFlow DynamicLevelsThe PhantomFlow Dynamic Levels indicator analyzes the dynamic volume over the period specified in the Period field. Channel boundaries can be used as dynamic support and resistance levels when trading within a range. The POC level also serves as a level at which the price may react during trend movements. The Period Multiplier parameter affects how many dynamic levels will be displayed. The Accuracy parameter influences the precision of volume calculations.
These levels are crucial for intraday traders as they serve as support or resistance. The Value Area zone includes 70% of the traded volume over the selected period. In other words, it represents the price region where the majority of traders believe the fair value for the asset lies.
The indicator's name, Dynamic Levels, aptly captures its essence. It analyzes trading volume at various price levels, tracking the sentiment dynamics of traders. When the asset's price decreases or increases as a result of trading, the Dynamic Levels indicator displays a new level on the chart. This results in a plotted line on the chart, allowing us to observe the movement dynamics of both the value area and the maximum volume level.
Standard indicators do not provide real-time visibility into level shifts, making the use of the Dynamic Levels indicator a competitive advantage in market trading across any time frame.
We borrowed the volume profile calculation code from @LonesomeTheBlue. Thank you for the work done!
300-Candle Weighted Average Zones w/50 EMA SignalsThis indicator is designed to deliver a more nuanced view of price dynamics by combining a custom, weighted price average with a volatility-based zone and a trend filter (in this case, a 50-period exponential moving average). The core concept revolves around capturing the overall price level over a relatively large lookback window (300 candles) but with an intentional bias toward recent market activity (the most recent 20 candles), thereby offering a balance between long-term context and short-term responsiveness. By smoothing this weighted average and establishing a “zone” of standard deviation bands around it, the indicator provides a refined visualization of both average price and its recent volatility envelope. Traders can then look for confluence with a standard trend filter, such as the 50 EMA, to identify meaningful crossover signals that may represent trend shifts or opportunities for entry and exit.
What the Indicator Does:
Weighted Price Average:
Instead of using a simple or exponential moving average, this indicator calculates a custom weighted average price over the past 300 candles. Most historical candles receive a base weight of 1.0, but the most recent 20 candles are assigned a higher weight (for example, a weight of 2.0). This weighting scheme ensures that the calculation is not simply a static lookback average; it actively emphasizes current market conditions. The effect is to generate an average line that is more sensitive to the most recent price swings while still maintaining the historical context of the previous 280 candles.
Smoothing of the Weighted Average:
Once the raw weighted average is computed, an exponential smoothing function (EMA) is applied to reduce noise and produce a cleaner, more stable average line. This smoothing helps traders avoid reacting prematurely to minor price fluctuations. By stabilizing the average line, traders can more confidently identify actual shifts in market direction.
Volatility Zone via Standard Deviation Bands:
To contextualize how far price can deviate from this weighted average, the indicator uses standard deviation. Standard deviation is a statistical measure of volatility—how spread out the price values are around the mean. By adding and subtracting one standard deviation from the smoothed weighted average, the indicator plots an upper band and a lower band, creating a zone or channel. The area between these bands is filled, often with a semi-transparent color, highlighting a volatility corridor within which price and the EMA might oscillate.
This zone is invaluable in visualizing “normal” price behavior. When the 50 EMA line and the weighted average line are both within this volatility zone, it indicates that the market’s short- to mid-term trend and its average pricing are aligned well within typical volatility bounds.
Incorporation of a 50-Period EMA:
The inclusion of a commonly used trend filter, the 50 EMA, adds another layer of context to the analysis. The 50 EMA, being a widely recognized moving average length, is often considered a baseline for intermediate trend bias. It reacts faster than a long-term average (like a 200 EMA) but is still stable enough to filter out the market “chop” seen in very short-term averages.
By overlaying the 50 EMA on this custom weighted average and the surrounding volatility zone, the trader gains a dual-dimensional perspective:
Trend Direction: If the 50 EMA is generally above the weighted average, the short-term trend is gaining bullish momentum; if it’s below, the short-term trend has a bearish tilt.
Volatility Normalization: The bands, constructed from standard deviations, provide a sense of whether the price and the 50 EMA are operating within a statistically “normal” range. If the EMA crosses the weighted average within this zone, it signals a potential trend initiation or meaningful shift, as opposed to a random price spike outside normal volatility boundaries.
Why a Trader Would Want to Use This Indicator:
Contextualized Price Level:
Standard MAs may not fully incorporate the most recent price dynamics in a large lookback window. By weighting the most recent candles more heavily, this indicator ensures that the trader is always anchored to what the market is currently doing, not just what it did 100 or 200 candles ago.
Reduced Whipsaw with Smoothing:
The smoothed weighted average line reduces noise, helping traders filter out inconsequential price movements. This makes it easier to spot genuine changes in trend or sentiment.
Visual Volatility Gauge:
The standard deviation bands create a visual representation of “normal” price movement. Traders can quickly assess if a breakout or breakdown is statistically significant or just another oscillation within the expected volatility range.
Clear Trade Signals with Confirmation:
By integrating the 50 EMA and designing signals that trigger only when the 50 EMA crosses above or below the weighted average while inside the zone, the indicator provides a refined entry/exit criterion. This avoids chasing breakouts that occur in abnormal volatility conditions and focuses on those crossovers likely to have staying power.
How to Use It in an Example Strategy:
Imagine you are a swing trader looking to identify medium-term trend changes. You apply this indicator to a chart of a popular currency pair or a leading tech stock. Over the past few days, the 50 EMA has been meandering around the weighted average line, both confined within the standard deviation zone.
Bullish Example:
Suddenly, the 50 EMA crosses decisively above the weighted average line while both are still hovering within the volatility zone. This might be your cue: you interpret this crossover as the 50 EMA acknowledging the recent upward shift in price dynamics that the weighted average has highlighted. Since it occurred inside the normal volatility range, it’s less likely to be a head-fake. You place a long position, setting an initial stop just below the lower band to protect against volatility.
If the price continues to rise and the EMA stays above the average, you have confirmation to hold the trade. As the price moves higher, the weighted average may follow, reinforcing your bullish stance.
Bearish Example:
On the flip side, if the 50 EMA crosses below the weighted average line within the zone, it suggests a subtle but meaningful change in trend direction to the downside. You might short the asset, placing your protective stop just above the upper band, expecting that the statistically “normal” level of volatility will contain the price action. If the price does break above those bands later, it’s a sign your trade may not work out as planned.
Other Indicators for Confluence:
To strengthen the reliability of the signals generated by this weighted average zone approach, traders may want to combine it with other technical studies:
Volume Indicators (e.g., Volume Profile, OBV):
Confirm that the trend crossover inside the volatility zone is supported by volume. For instance, an uptrend crossover combined with increasing On-Balance Volume (OBV) or volume spikes on up candles signals stronger buying pressure behind the price action.
Momentum Oscillators (e.g., RSI, Stochastics):
Before taking a crossover signal, check if the RSI is above 50 and rising for bullish entries, or if the Stochastics have turned down from overbought levels for bearish entries. Momentum confirmation can help ensure that the trend change is not just an isolated random event.
Market Structure Tools (e.g., Pivot Points, Swing High/Low Analysis):
Identify if the crossover event coincides with a break of a previous pivot high or low. A bullish crossover inside the zone aligned with a break above a recent swing high adds further strength to your conviction. Conversely, a bearish crossover confirmed by a breakdown below a previous swing low can make a short trade setup more compelling.
Volume-Weighted Average Price (VWAP):
Comparing where the weighted average zone lies relative to VWAP can provide institutional insight. If the bullish crossover happens while the price is also holding above VWAP, it can mean that the average participant in the market is in profit and that the trend is likely supported by strong hands.
This indicator serves as a tool to balance long-term perspective, short-term adaptability, and volatility normalization. It can be a valuable addition to a trader’s toolkit, offering enhanced clarity and precision in detecting meaningful shifts in trend, especially when combined with other technical indicators and robust risk management principles.
VWAP From Multiple Sources With Cloud & Percentage GapVWAP CLOUD FROM CLOSE, OPEN, HIGH & LOW SOURCES WITH CLOUD & PERCENTAGE GAP
VWAP stands for volume weighted average price and shows the average price of buys/sells based on volume traded across the current session. This VWAP is based off of the Daily session.
***HOW TO USE***
Use the purple cloud between the VWAPs as your entry points as price will typically bounce from that cloud area.
The Yellow Line is the VWAP using the close price as a source.
The Green Line is the VWAP using the open price as a source.
The Blue Line is the VWAP using the high price as a source.
The Purple Line is the VWAP using the low price as a source.
When price is above the VWAP cloud, the background will paint green because the trend is bullish.
When price is below the VWAP cloud, the background will paint red because the trend is bearish.
In the bottom right hand corner, three is a table that will show you the current percentage gap between current price and the VWAP using close as the source.
All sources and colors can be easily switched in the settings menu.
***MARKETS***
This indicator can be used as a signal on all markets, including stocks, crypto, futures and forex.
***TIMEFRAMES***
This vwap indicator can be used on all timeframes but is calculated using the daily session.
***TIPS***
Try using numerous indicators of ours on your chart so you can instantly see the bullish or bearish trend of multiple indicators in real time without having to analyze the data. Some of our favorites are our Auto Fibonacci, Volume Profile, Directional Movement Index, Momentum, Auto Support And Resistance and Money Flow Index in combination with this VWAP Cloud. The other indicators all have real time Bullish and Bearish labels as well so you can immediately understand each indicator's trend.
EulerMethod: V-ProfileVolume profile
50 rows | 50 рядов
Depth — Depth of history | Глубина истории
Range ± — Floating range | Плавающий диапазон
∟ % — Floating range % | Плавающий диапазон %
Amp — Amplitude of histogram | Амплитуда гистограммы
Minimum right margin: 10 bars | Минимальное правое поле: 10 баров
Pre-Market Volume ProfileThis indicator displays the pre-market volume (note: without the post-market of the previous day).
Unusual pre-market volume often indicates that institutional market makers are moving the market, which is a good sign for unusual high price movement.
The indicator helps me to spot stocks, if a pre-market gap is confirmed with enough (unusual) volume.
You can define, what "unusual" means by you, by adjusting the SMA length and the SMA multiplier.
The default is a length of 21 bars and a 2.5 multiplier, meaning I'm interested in a stock, if the pre-market volume exceeds the average pre-market volume by 2.5 times.
Nifty Volume profile + VWAP + EMA The script picks up nifty stocks with their current respective weights and plots a Volume Weighted Average Price line along with 2 EMAs and an alert when the EMAs cross over.
You can customize the script for EMA lengths and to remove alert. Basic utility of the script is to analyse volumes driving the Nifty 50 index.
Credits to @daytraderph and his script (Custom Volume) who's code I used to build this script. Also thanks to my friend @Varun who helped me code it.
Underworld Hunter Backtesting AlgorhitmThis strategy is built to prove the profitability of my Underworld Hunter indicator . It tests two different strategies. I won't be going into the calculation again since it is part of the original script. I just made a few adjustments.
First one is clearly visual. It plots slimmer twin-coloured lines now and has a different colour for every extreme level. Second is less obvious - I switched Relative Strength Index for Commodity Channel Index.
Extreme levels are as follows: green 100 -► 120, yellow 120 -► 140, orange 140 -► 160, red 160 -► 180 and purple above 180, I will have a special separate algorithm for testing optimal CCI levels someday, in this script, these values are only meant to help you with manual operations and do not influence results of the strategy in any way.
#Trending strategy
The trending strategy opens a position whenever the price leaves the bands and holds it until two consecutive bars are closed within the bands. The picture shows one winning position that hasn't yet been resulted. It also shows a few fakeouts. For this strategy, you want to keep the length below 110, the deviation should be below 2 and you probably want to play lower timeframes.
#Within the bands
The second strategy is pretty much the opposite. It opens a position when the price reaches outer bands and holds it until two consecutive bars are closed within the bands and current bar closes below previous bars low in case of long. It is working on hourly timeframes and you need higher length and deviation to succeed. The picture shows a few positions on EURUSD. Each of them is profitable but would be much higher if you closed it manually when it was time. You need to enable this strategy, which automatically disables the other one.
When using my script, you need to bear in mind that the first strategy doesn't detect optimal levels to close the price. A trend is often followed by a less volatile and boring correction which causes bands to shrink and lower your profits if you don't close manually as it will take longer till bands are reached.
On the other hand, second script literally has no stop-loss. As long as the price is outside the range, it will never close which will cause major drawdowns, unless you control the trade manually. CCI is here to help you with both.
I also recommend combining this with Market Profile (on TW, there is only Volume Profile, which can be used in a similar way) and trading day theory (trending with multiple distributions, trending day, normal day, a variation on a normal day, non-trending day or neutral day). Always keep in mind that it is up to traders to be profitable, indicators can support a good trader, but they will not fix a bad one.
Angled Volume Profile [feeble]BETA VERSION
this indicator maps volume as brightness over an SMA. the brightness then fades over time.
It draws 30 bands, so you will need to load multiple instances to get a large picture.
Configure the settings, then copy and paste the indicator, modifying only the vertOffset attribute each time
Patience, bruh. This takes a long time load. Chrome runs it faster than Firefox. ¯\_(ツ)_/¯
Please let me know if you can think of how to optimize it.
Feedback is appreciated is you use it :)
sample with 6 instances:
settings:
useLog: enable if you are using a log graph
rowHeight: resolution of rows.
vertOffset: normally if you have 5 instances, the values will be -2,-1,0,1,2
fadeAmt: how long it takes for volume to fade once it is picked up
volumeMin and Max: the volume range displayed.
volumeResolution: time resolution at which volume data is collected - this is why the fadeAmt is so high, and why the graph runs out of data after a period back
EMA length: its Actually SMA but I wrote it wrong. eg. for a 20 day period on a 15min chart you go ( 20 days x 24 hrs x 4 quarter hours = 1920) - I hope to automate this in a future version :p
Absolute KRI [vnhilton]The Kairi Relative Index (KRI) is a volatility momentum oscillator that plots the distance of price away from a moving average. An increase or decrease in distance is a sign of increasing/decreasing momentum respectively, & a relatively stable distance would mean momentum is also stable. An increase in momentum is a sign of strength, price extending away from the moving average, & has to revert back to the mean sooner than later, which is why some traders look to take profit or contrarian trades with this increase in momentum.
This indicator plots the KRI in absolute values, meaning that the value can never be lower than 0, helping to see momentum clearer, with colours to still give information on whether or price is in an uptrend or downtrend if it's above/below the moving average respectively. This indicator also includes a standard deviation band, to help spot abnormal distances between price & the moving average, which may be more worthy of attention as that's a sign of significant activity that's caused momentum.
The chart snapshot image above shows ATXI moving ~70% from its open on 30/09/22. From open to midday, we can see price extend away from the 21 EMA (impulses) several times, with retracements back towards the EMA following right after. Let's look at 3 main examples of price creating new highs.
- At (1), price attempts to make a new high, & but meets historical resistance, causing price to retrace back to the mean. On the indicator, you can see momentum failing to be higher than previous momentum after making new highs, which shows that historical resistance, alongside the whole $10 dollar level, were significant in causing a reversal (you can see sell volume using the periodic volume profile (pvp) for each bar). The indicator also shows momentum extending further than the standard deviation band, which is mostly expected as it's right at the open & the stock was in play at the time. The indicator falls back under the standard deviation band which confirms the retracement, as it's showing slowing of momentum.
- At (2), the indicator indicates significant activity again after exiting the standard deviation band, with the impulse slowing down right the resistance, testing it several times to satisfy passive sellers, until aggressive buyers were able to push the price higher. This confirmed new high that followed afterwards didn't exhibit the same momentum as (1), which means that the overall trend is slowing down, meaning that traders should be more cautious of trying to buy into new highs (i.e. take profit earlier, & look for reversals).
- At (3), the indicator shows significant activity again as price heads towards making a new high. As new highs were created, we can see that the momentum causing this breakout is lower than the previous momentum at (2) & (1), again showing that the overall trend is slowing down. The whole $12 dollar level, & FOMO/greed buyers being trapped at the wick (you can see buy volume using the pvp indicator), allowed for short-term resistance for a mean reversion play.
Money Flow Trend Strength [CraftyChaos]I devised this indicator because I wanted to find a way to track the Money Flow Trend to exhaustion for both directions.
Overview:
I use two MFI series and an EMA of the faster MFI series to derive when the Money Flow is trending in one direction or another.
What does this indicator not do:
This indicator does not give buy and sell signals.
What does this indicator do:
This indicator offers confluence with your other indicators to determine when a reversal is approaching after a sustained trend of money flowing in or out of an asset.
This indicator can help time your trades near reversal points, so you are not entering trades in the middle of some trending move.
How to Tune
I would not recommend changing the settings. I have exposed them for people that want to experiment. The short lengths are key to reducing lag
How to read the indicator:
When a red cross appears at the top, this indicates money flow into the asset is strong. Do not short an asset while there are red crosses. You will get REKT
When a green cross appears at the bottom, this indicates money flow exiting the asset is strong. DO NOT buy an asset while there are green crosses. You will get REKT.
When the white step line enters the top, but no crosses appear, this indicates money is flowing into the asset, but is weak. The trend will either gain strength soon or will collapse.
When the white step line enters the bottom, but no crosses appear, this indicates money is flowing out of the asset, but is weak. The trend will either gain strength soon or will collapse.
The green line is the slower MFI. I would not use any crosses with the white step line and the green line. These two lines can cross frequently and show divergences with price. very frequent crossing may indicate sideways movement with no real price movement.
I often see the white step line enter the bottom and top zones under two primary conditions:
Secondary tests of support and resistance zone which fail
Failed breakouts/pullbacks after a pump or dump
Additionally, I use my indicator with the following indicators. You may find them useful:
Jurik Filtered, Composite Fractal Behavior (CFB) Channels (on current timeframe). Note: I often find strong trends trace the upper/lower bands, and end when the upper or lower band flattens
Jurik Filtered, Composite Fractal Behavior (CFB) Channels (on smaller timeframe, i.e., 2hr on a 4h or 15m on the 1hr). Note: I often find weak trend pullbacks/breakouts touch the channel bands
Session Volume Profile. Note: find trend completion corresponds to price above/below VAL areas
Bitcoin Real VolumeBitcoin’s Real Volume
An accurate read on the change in Bitcoin’s volume profile over time.
Based on 2019 reports by Bitwise and Alameda Research.
Please see the script code notes for assumptions and details on data selection.
Follow me for more information on this script.
