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OPEN-SOURCE SCRIPT

Directional Volume Index

By cybernetwork
Updated
A new idea of mine that I am presently experimenting on for my trades.

The Directional Volume Index (DVI) is defined as follows:
DVI = VWMA(len1) - SMA(len2), where by default, len1==len2

The sign of the DVI provides volume confirmation of the direction of the price trend.
The magnitude of the DVI provides the volume confirmation of the strength of the price trend.

The novel aspects and principles of this indicator and this source code are the property of © cybernetwork.
This indicator and script is free for the TV community to use.

Release Notes
Removed redundant input.
Release Notes
Updated smoothing to VWMA smoothing.
Release Notes
Updated inputs.
Release Notes
Tweaked VWMA smoothing parameter.

NOTE: The accompanying analysis package is now republished as Directional Volume Index (DVI) {PREMIUM}.
Release Notes

  • Added Stdev based thresholds.
  • The DVI piercing the Stdev boundary suggests overexuberance in the corresponding direction.
  • Tightening of the DVI-Stdev bands can suggest the possible incoming of major move ahead.
Release Notes
Simplified script.
Release Notes
Updated vwma smoothing default.
directionaldirectionalvolumeconfirmationdirectionalvolumeindexdviMoving AveragesOscillatorsvolumeconfirmationVolume

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

Want to use this script on a chart?

cybernetwork

Disclaimer

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