3 Volumes > 1 Up :: Volume Series Vol.2
Updated
I am always excited about what the users here conjure up with Pine. I don't know if it's because of Pine’s new features, but little by little TV just keeps getting better and better.
What caught my attention is the Raindrop from Makit0. You can find the indicator, or let's better call it this charting instrument, when you search for "Raindrop" in the Indi menu.
I think it's really nice that the code is accessible free of charge and gives others the opportunity to improve and refine the code. Everything is not yet fully developed but the foundation stone has been laid. I'm not quite sure about the settings either, but for now I'm very happy with them.
Most likely use "simple" candles. Candles "earlier" were high-end in contrast to the "previously" known charting instruments. Point & Figure, Line-Chart and Bar-Charts are the veterans.
Meanwhile the financial market is more complex and today's trader has to process a lot of information that cannot be reconciled with a candle, for example.
Therefore, I am always looking for "things" that provide me with certain information quickly and efficiently and ideally combine different things so that a "step" or one or even better several things are omitted on the chart.
The raindrop as a charting instrument is still quite new. If you google you will find the origin 2018. There you will also find what you are looking for when it comes to the function or the construction behind it. It is basically nothing more than a tuned candle with a vertical volume profile and a session splitter. It also looks pretty chic and doesn't clutter the chart.
This is an interesting thing, especially in the daily timeframe , because with the daily you get a built-in, easy way to separate the ETH / Electronic Trading Hours / Overnight / Asia and Europe from the RTH / Real Trading Hours / Pit Session / US session.
Unfortunately, I still lack the setting for the indicator itself that you can further specify the time of the split. The Raindrop simply divides 24h in half ... So you get a rough breakdown instead of an exact one.
However, the current option is better than nothing and thus replaces the rough session indicator and the volume profile .
The less stuff there is on the chart, the more overview you have and the clearer the focus.
For example, if you have not paid attention to different sessions and volumes beforehand, you have an easy way of quickly taking this into account with one tool at a glance. It only takes a few seconds can provide a good source of objective data.
What you can do here primarily is to quickly and easily see at which price levels the most volume has arisen and how the focus (here on the example of the DailyTF) of the overnight and the US session is. You can easily see where there was very little volume and which zones are highly frequented and thus interesting for later price movements.
The raindrop is a mixture of traditional chart display, volume and equivolume. I have added a chart below in the comments in which you can see the only available equivolume tools from TV compared to Raindrop.
The definition of equivolume from the WWW:
"In the Equivolume Chart, the price is shown in the form of rectangular boxes. The height of the boxes represents the range between the highest and lowest prices. The width of the boxes shows the trading volume . The wider the box, the greater the trading volume in the period under consideration. "
It's kind of like a volume weighted candle.
The raindrop is a good tool to objectively display volume and sentiment. As with everything, there are certain "patterns" in the form of different raindrop types that I don't want to list here.
The left and right "mean" / "value area" / "price level with the most volume" of the raindrop is calculated using 2 anchored VWAPs.
In order to show the connection to the VWAP (2nd chart) and the volume profile with activated Developing Value Area (in the 3rd chart window) I have added the two lower windows.
Each of the tools listed has a meaningful use, but you don't always need everything and if necessary you can combine all 3 representations on a chart ...
The raindrop provides 4 parameters
- high
- Low
and the mean of the 2 split periods
We can see with all 3 charts that the information is the same and only the presentation varies.
I have no idea whether it will be of any use to me in the future, but I will now observe it continuously and learn from it.
Actually, I had no intention of creating a blog post, but if you ever make the effort to compare the Raindrop with the other tools, I can share it right away and save others the trouble.
The information of the raindrop is clearly confirmed for me and now it is up to me or the user whether and how one can / want / want to use it for daily trading.
I think I'll publish something about it here, but for now I'm done.
Have fun with it!
What caught my attention is the Raindrop from Makit0. You can find the indicator, or let's better call it this charting instrument, when you search for "Raindrop" in the Indi menu.
I think it's really nice that the code is accessible free of charge and gives others the opportunity to improve and refine the code. Everything is not yet fully developed but the foundation stone has been laid. I'm not quite sure about the settings either, but for now I'm very happy with them.
Most likely use "simple" candles. Candles "earlier" were high-end in contrast to the "previously" known charting instruments. Point & Figure, Line-Chart and Bar-Charts are the veterans.
Meanwhile the financial market is more complex and today's trader has to process a lot of information that cannot be reconciled with a candle, for example.
Therefore, I am always looking for "things" that provide me with certain information quickly and efficiently and ideally combine different things so that a "step" or one or even better several things are omitted on the chart.
The raindrop as a charting instrument is still quite new. If you google you will find the origin 2018. There you will also find what you are looking for when it comes to the function or the construction behind it. It is basically nothing more than a tuned candle with a vertical volume profile and a session splitter. It also looks pretty chic and doesn't clutter the chart.
This is an interesting thing, especially in the daily timeframe , because with the daily you get a built-in, easy way to separate the ETH / Electronic Trading Hours / Overnight / Asia and Europe from the RTH / Real Trading Hours / Pit Session / US session.
Unfortunately, I still lack the setting for the indicator itself that you can further specify the time of the split. The Raindrop simply divides 24h in half ... So you get a rough breakdown instead of an exact one.
However, the current option is better than nothing and thus replaces the rough session indicator and the volume profile .
The less stuff there is on the chart, the more overview you have and the clearer the focus.
For example, if you have not paid attention to different sessions and volumes beforehand, you have an easy way of quickly taking this into account with one tool at a glance. It only takes a few seconds can provide a good source of objective data.
What you can do here primarily is to quickly and easily see at which price levels the most volume has arisen and how the focus (here on the example of the DailyTF) of the overnight and the US session is. You can easily see where there was very little volume and which zones are highly frequented and thus interesting for later price movements.
The raindrop is a mixture of traditional chart display, volume and equivolume. I have added a chart below in the comments in which you can see the only available equivolume tools from TV compared to Raindrop.
The definition of equivolume from the WWW:
"In the Equivolume Chart, the price is shown in the form of rectangular boxes. The height of the boxes represents the range between the highest and lowest prices. The width of the boxes shows the trading volume . The wider the box, the greater the trading volume in the period under consideration. "
It's kind of like a volume weighted candle.
The raindrop is a good tool to objectively display volume and sentiment. As with everything, there are certain "patterns" in the form of different raindrop types that I don't want to list here.
The left and right "mean" / "value area" / "price level with the most volume" of the raindrop is calculated using 2 anchored VWAPs.
In order to show the connection to the VWAP (2nd chart) and the volume profile with activated Developing Value Area (in the 3rd chart window) I have added the two lower windows.
Each of the tools listed has a meaningful use, but you don't always need everything and if necessary you can combine all 3 representations on a chart ...
The raindrop provides 4 parameters
- high
- Low
and the mean of the 2 split periods
We can see with all 3 charts that the information is the same and only the presentation varies.
I have no idea whether it will be of any use to me in the future, but I will now observe it continuously and learn from it.
Actually, I had no intention of creating a blog post, but if you ever make the effort to compare the Raindrop with the other tools, I can share it right away and save others the trouble.
The information of the raindrop is clearly confirmed for me and now it is up to me or the user whether and how one can / want / want to use it for daily trading.
I think I'll publish something about it here, but for now I'm done.
Have fun with it!
Note
No Expert / No Advice—please be kind. It's just a Wizard with Tales of Time, Price & Mind.
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