Composite Bull-Bear Dominance IndexNote: CREDITS: This is based on the Up Down Volume Indicator (published in Trading View) and Elder Ray Index (Bull Bear Power).
The Composite Bull Bear Dominance Index (CBBDI) is a indicator that combines up down volume analysis with Bull and Bear Power to provide a comprehensive view of market dynamics. It calculates Z-scores for up down volume delta and bull bear power measures, averages them, and then smoothes the result using Weighted Moving Average (WMA) for Bull and Bear Power and Volume Weighted Moving Average (VWMA) for Up and Down Volume Delta. The advantages include responsiveness to short-term trends, noise reduction through weighting, incorporation of volume information, and the ability to identify significant changes in buying and selling pressure. The indicator aims to offer clear signals for traders seeking insights into overall market dominance and indicate if the bulls or the bears have the upper hand.
Volume Analysis (Up/Down Volume Delta):
Up/Down Volume Delta reflects the net difference between buying and selling volume, providing insights into the prevailing market sentiment.
Positive Delta: Indicates potential bullish dominance due to higher buying volume.
Negative Delta: Suggests potential bearish dominance as selling volume surpasses buying volume.
Price Analysis (Bull and Bear Power):
Bull and Bear Power measure the strength of buying and selling forces based on price movements and the Exponential Moving Average (EMA) of the closing price.
Positive Bull Power: Reflects bullish dominance, indicating potential upward momentum.
Positive Bear Power: Suggests bearish dominance, indicating potential downward momentum.
Composite Bull Bear Dominance Index (CBBDI):
CBBDI combines the standardized Z-scores of Up/Down Volume Delta and Bull Bear Power, providing an average measure of both volume and price-related dominance.
Positive CBBDI: Indicates an overall bullish dominance in both volume and price dynamics.
Negative CBBDI: Suggests an overall bearish dominance in both volume and price dynamics.
Smoothing Techniques:
The use of Weighted Moving Average (WMA) for smoothing Bull and Bear Power Z-scores, and Volume Weighted Moving Average (VWMA) for smoothing Up/Down Volume Delta, reduces noise and provides a clearer trend signal.
Smoothing helps filter out short-term fluctuations and emphasizes more significant trends in both volume and price movements.
Color Coding:
CBBDI values are color-coded based on their direction, visually representing the prevailing market sentiment.
Green Colors: Positive values indicate potential bullish dominance.
Red Colors: Negative values suggest potential bearish dominance.
Bullbearpower
Bull Bear Power with Optional Normalization FunctionThis indicator is designed to provide traders with insights into market sentiment and potential trend reversals. This indicator enhances the traditional Bull Bear Power (BBP) by adding valuable visualizations and customization options to assist traders in making informed trading decisions.
Indicator Overview:
The NBBP indicator calculates Bull Bear Power, which measures the strength of bullish and bearish forces in the market. It does so by taking the difference between the high and the exponential moving average (EMA) of the closing price for a specified length. This raw BBP is represented on the chart as a line.
Key Features:
-- Zero Line : The NBBP indicator introduces a central reference line at zero. This line serves as a pivotal point for interpreting market sentiment. When the BBP line is above zero, it is colored green, indicating a predominance of bullish sentiment. Conversely, when the BBP line is below zero, it turns red, signaling a prevalence of bearish sentiment. This coloration helps traders quickly identify shifts in market sentiment.
-- OPTIONAL Normalization Function : One of the standout features of the NBBP indicator is its optional normalization function. When activated in the settings menu, this function scales the BBP values from -1 to +1. This means that BBP values are adjusted to fit within a standardized range, making it easier for traders to compare sentiment across different timeframes or assets. Normalization is particularly valuable for identifying extreme sentiment conditions and potential reversals.
-- Moving Average : To provide additional context and smooth out BBP fluctuations, the indicator includes an exponential moving average (EMA). The EMA of BBP is plotted on the chart as a white line. Traders can use this moving average to identify trends and potential trend reversals.
-- Fill Between Lines : The indicator visually enhances the BBP by filling the area between the BBP line and the zero line with a translucent color. This fill helps traders visualize the strength and duration of bullish or bearish sentiment.
Interpretation:
-- BBP Line : Traders can assess the raw BBP line for shifts in sentiment. When the line crosses above zero, it may suggest a shift from bearish to bullish sentiment, potentially indicating a buying opportunity. Conversely, when the line crosses below zero, it may signal a shift from bullish to bearish sentiment, suggesting a potential selling opportunity.
-- Normalization Function : The optional normalization function allows traders to gauge sentiment on a standardized scale. Values above 0 indicate bullish sentiment, while values below 0 suggest bearish sentiment. The closer the values are to their polar ends (-1 or +1), the stronger the sentiment.
-- Moving Average : The EMA of BBP helps identify trends. When BBP crosses above the EMA, it may indicate a strengthening bullish trend, while a crossover below the EMA may suggest a bearish trend.
Customization:
The NBBP indicator provides traders with flexibility through customizable settings. Users can adjust the BBP length, EMA length, and choose to activate or deactivate the normalization function based on their trading preferences and strategy.
Limitations:
The NBBP indicator is most effective when used in conjunction with other technical analysis tools and market context. Traders should consider multiple factors when making trading decisions.
Normalization function results may vary depending on the chosen length and market conditions. If the desired result is not achieved through default settings, try changing timeframes or toggling on/off the normalization function. Users should exercise caution and combine it with other indicators and analysis techniques.
In conclusion, the NBBP indicator is a versatile tool that empowers traders to assess market sentiment, identify potential reversals, and follow trends. Its intuitive visualizations, normalization function, and customizable settings make it a valuable addition to any trader's toolkit.
Bull Bear Power VoidThere are a million oscillators out there based on volume. My biggest problem with them is that they simply tell you whether you have volume to the upside or volume to the down side. it's kind of tricks you with the lack of information into thinking you have a change in your trend or that you're going to be able to break out of a range across a moving average or through some trend line or support and resistance.
However many of these Oscillators are failing because they lacked to tell you one key thing. they tell you that you have volume but they never tell you if it's enough volume.
Even a popular indicator like the MACD can have its MACD Line crossing upwards over the signal, telling you that you have an uptrend but again it's still failing to give you the results of how much volume you have and is it enough volume in that crossover. It boils down to the one key fact that with out volume there is no momentum. This should be able to make trading crossovers a lot easier.
So in today's video I'm going to show you the newest addition to the trading View Community Scripts and it is called,
"The Bull Bear Void Volume Oscillator"
From my own testing, this oscillator can predict weather the next candle will get you the move you need or not.
In the markets you cannot have anything good without volume. after you have volume you have momentum. you cannot have momentum without volume and this is the key thing that causes people to fail when they look for breakouts, trend reversals, or if they're wondering whether this move is a fake out.
This indicator is based on the study volume spread analysis or VSA.
This indicator is designed to be paired perfectly with the Heiken Ashi Algo oscillator.
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This indicator is strictly to be used as a confirmation indicator and not to be used by itself to tell you when to buy or sell.
what are its parts.
The void
is a bullish and bearish Cloud that appear extending from the center of words and the center down words. This is the average range of volume. anything that appears to close inside of this void is usually a ranging volume and it is not enough to break the trend or break out.
The MACD and MACD Signal Line
Just like using the macd these two lines indicate whether the trend is moving up for the trend is moving down
The Colored Columns
RED Column - Indicates volume movie downward
Light Red - indicates volume is pulling back from a downward move
Green - indicates volume is moving upwards
Light Green - indicates volume is moving down from an outboard move
Rules for a SELL CONFIRMATION TRADE
The macd line must be underneath the signal line and the macd line must be below the midline.
A bullish column must appear below the midline and it must extend outside of the red void.
if you are using the heikin-ashi Aldo oscillator you must also have a red heiken Ashi candle close below -10.
To do a by trade you simply reverse the rules.
Bull/Bear Buy/Bail CandlesBased on BullBearPower indicator, this is a heavily modified version with colored candles to show when bulls or bears are buying or bailing. Includes Fibonacci Levels based on Highest/Lowest value in variable length, along with optional second timeframe and alternative calculation for candles and linear regression curves for increased versatility. Green = bullish /long, Aqua = still-bullish albeit weakening, blue = weak albeit strengthening and red = weak/short. Perfect as a confirmation indicator for those looking to time markets.
Cumulative Volume DeltaA Cumulative Volume Delt a approach based on the Bull and Bear Balance Indicator by Vadim Gimelfarb published in the October 2003 issue of the S&C Magazine.
Adjust the length of the moving average according to your needs (Symbol, Timeframe, etc.)
