OPEN-SOURCE SCRIPT
Advanced Volume-Driven Breakout Signals
Updated
The "Advanced Volume-Driven Breakout Signals" indicator is a cutting-edge tool designed to help traders identify high-potential trading opportunities through sophisticated volume analysis techniques. This indicator integrates volume flow analysis, moving averages, and Relative Volume (RVOL) to provide a comprehensive view of market conditions, going beyond traditional Volume Spread Analysis (VSA) methods.
Key Features:
Usage:
Comparison to VSA Scripts: The "Advanced Volume-Driven Breakout Signals" indicator extends beyond traditional VSA scripts by incorporating a wider range of analytical features. While VSA primarily focuses on volume spread patterns and price action, this indicator offers enhanced functionality with advanced RVOL metrics, customizable moving averages, and detailed volume spike detection, making it a more versatile tool for identifying breakout opportunities and managing trades. It is particularly effective when used alongside key levels and order blocks.
Acknowledgements: Special thanks to oh92 and goofoffgoose for their invaluable scripts, which served as inspiration in the development of this advanced trading indicator.
Notes: The script is continually evolving, with ongoing refinements aimed at enhancing accuracy and performance.
Key Features:
- Volume Flow Analysis: Distinguishes bullish and bearish volume flows with distinct colors, making it easier to visualize market sentiment and potential breakout points.
- Volume Flow Moving Averages: Calculates moving averages for volume using various methods (SMA, EMA, WMA, HMA, VWMA), accommodating different trading strategies. This includes settings for adjusting the type of moving average and its period, as well as thresholds for high, medium, and low volume levels.
- Volume Spikes Detection: Identifies significant volume spikes based on user-defined multipliers and moving averages, highlighting unusual trading activity.
- Volume MA Cloud Settings: Computes general moving averages of volume to track trends and detect deviations. This feature includes options to select different moving average types and adjust thresholds for detecting high volume activity.
- Relative Volume (RVOL): Measures current volume relative to historical averages, triggering signals when RVOL exceeds predefined thresholds, indicating notable changes in trading activity.
- Entry Conditions: Provides clear long and short entry signals based on combined volume flow conditions and RVOL, offering actionable trading opportunities.
- Volume Visualization:
- —Bullish Volume Flow: Light and dark green bars indicate bullish volume flow.
- —Bearish Volume Flow: Light and dark red bars denote bearish volume flow.
- —High Volume Bars: Highlighted in yellow, and extreme volume bars in orange for additional context. These bars are plotted for visual aid and do not directly influence trade signals, focusing instead on the quality and strength of the volume flow.
- Alerts: Allows users to create alert notifications for long and short entry signals when the criteria are met, enabling traders to respond promptly to trading opportunities.
Usage:
- Overlay: Apply the indicator directly to your price chart to visualise real-time signals and volume conditions.
- Customisable: Adjust settings for moving averages, RVOL, and other parameters to match your trading strategy and preferences.
Comparison to VSA Scripts: The "Advanced Volume-Driven Breakout Signals" indicator extends beyond traditional VSA scripts by incorporating a wider range of analytical features. While VSA primarily focuses on volume spread patterns and price action, this indicator offers enhanced functionality with advanced RVOL metrics, customizable moving averages, and detailed volume spike detection, making it a more versatile tool for identifying breakout opportunities and managing trades. It is particularly effective when used alongside key levels and order blocks.
Acknowledgements: Special thanks to oh92 and goofoffgoose for their invaluable scripts, which served as inspiration in the development of this advanced trading indicator.
Notes: The script is continually evolving, with ongoing refinements aimed at enhancing accuracy and performance.
Release Notes
Updates Summary:- Color Plotting Fixed: Adjustments were made to ensure that the correct colors are applied to bars based on volume flow conditions. This includes defining specific colors for bullish and bearish signals (e.g., light green for bullish, light red for bearish) and extreme volume scenarios (dark green, dark red).
- Volume Flow Colors: Updated the volume flow color calculations (vf_color_bull, vf_color_bear, etc.) to ensure they accurately reflect the market conditions when plotting.
- Boolean Conditions for Coloring: Improved logic for volume spikes and crossover conditions (gsig, rsig, vol_high, vol_ext) to ensure consistent bar coloring.
- Candle Coloring: The barcolor function now correctly applies colors based on volume flow and volume spikes, providing clearer visual signals for trade entry conditions.
These changes ensure that bar colors on the chart are accurately plotted according to the strategy's volume and price conditions.
Release Notes
Updates Summary:- Corrected the RVOL MA Calculation: Ensured that the moving average for Relative Volume (RVOL) is correctly calculated according to the selected MA type and period.
- Added Cumulative Net Volume as an Additional Confirmation: Included the Cumulative Net Volume (CNV) with a smoothing mechanism and incorporated it into the confirmation rules for entry signals.
- Adjusted Entry Signals: Modified the conditions for entry signals to occur before extreme volume moves, ensuring that all conditions are met before triggering trades.
- Added Reversal Signals: Implemented signals for potential reversals during extreme volume conditions, indicating the possible end of a move.
Release Notes
Updated Features and Improvements:Customizable Alert Controls:
- Added input options allowing users to enable or disable alerts for specific signals directly from the input panel.
Enhanced Display Settings:
- Introduced options to show or hide labels for Buy/Sell Volume Signals, giving users control over how signals are displayed on the chart.
- Added an input to toggle the visibility of the CNV-based background, allowing traders to choose whether they want the bullish or bearish CNV conditions visually highlighted on their charts.
- Added the option to show or hide overextension signals, helping traders identify market exhaustion points as needed.
Toggle Options for RVOL and CNV Filters:
- Added the ability to enable or disable the Relative Volume (RVOL) filter and Cumulative Net Volume (CNV) filter. This allows traders to decide whether to include these filters in their analysis, providing flexibility to focus only on the metrics that matter to their strategy.
Streamlined Terminology for Clarity: - Changed "entry" signals to buy volume and sell volume signals, better reflecting the nature of these indicators as periods of increased buying or selling pressure.
- Renamed reversal signals to overextension signals, accurately representing their function as indicators of potential exhaustion rather than strict reversals.
These improvements provide greater flexibility in how traders use the indicator, allowing for a more customized and precise trading experience. The ability to toggle key filters and alerts makes the indicator adaptable to varying market conditions and trading styles.
Release Notes
Updated CoverOpen-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.
Disclaimer
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