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Indicators and strategies

Alpha Beta Gamma with Volume CandleAlpha Beta Gamma with Volume Candle This Pine Script indicator analyzes price dynamics and volume activity to assist traders in identifying momentum, reversals, and key price levels. It calculates three proprietary metrics—Alpha, Beta, and Gamma—based on a user-selected price type (e.g., Open, Close, HL2) and timeframe, using a lookback period (default 37 bars). These metrics normalize price movements relative to the range of highs and lows, helping traders gauge market strength and positioning. How It Works: Alpha: Measures the distance of the selected price from the lowest price over the lookback period, normalized by the period length. Beta: Represents the full price range (high minus low) over the lookback period, scaled by the period length. Gamma: Normalizes the price’s position within the high-low range, providing a 0–1 scale for relative positioning. Volume Analysis: The script classifies candles based on volume thresholds relative to a simple moving average (SMA, default 400 bars). High volume (≥ 2x SMA), low volume (≤ 0.5x SMA), and strong signal volume (≥ 1.5x SMA) trigger distinct candle colors to highlight bullish (e.g., deep blue, violet) or bearish (e.g., aqua, pink) conditions. Custom Bands: Nine horizontal levels (0 to 1, divided into eight equal parts) act as dynamic support/resistance zones, useful for grid-based trading or breakout strategies. How to Use: Inputs: Chart Timeframe: Select the timeframe for price data (e.g., 1H, 1D). Price Type: Choose the price metric (e.g., Close, HL2) for calculations. ABG Length: Adjust the lookback period (default 37) for sensitivity. Volume MA Length: Set the SMA period for volume analysis (default 400). Volume Thresholds: Customize high, low, and strong volume multipliers. Visual Settings: Toggle labels, custom bands, and table display; adjust line styles, label sizes, and table positions. Interpretation: Use Alpha, Beta, and Gamma plots to assess price momentum and range dynamics. Monitor colored candles for volume-driven signals (e.g., violet for strong bullish volume). Leverage custom bands for support/resistance or breakout trading. Check the table for real-time ABG values and percentage changes. Settings Tips: For scalping, reduce the ABG Length (e.g., 20) and use a shorter timeframe (e.g., 5M). For swing trading, increase the Volume MA Length (e.g., 600) for more stable volume signals. Enable labels and custom bands for visual clarity on key levels. This indicator is versatile for various trading styles, combining price-based metrics with volume analysis to enhance decision-making.
Pine Script® indicator
by Dshergill
Highlight Large Candles// 🔍 Highlight Large Candles Indicator // 🇬🇧 This indicator highlights candles where the full candle size (high - low) exceeds a user-defined percentage of the opening price (e.g., 1%). // 🟠 When detected, the candle is colored orange and a label appears showing: // - Body size // - Upper wick size // - Lower wick size // - Open → Close distance (in price and %) // // 🔧 The minimum candle size threshold can be customized in the Settings. // Ideal for identifying strong momentum or breakout candles.
Pine Script® indicator
by AnrOt
Quarterly Fundamentals Table by GauravThis Pine Script v3 overlay paints a compact, six‐column table in the top‐right of your chart that begins with your stock’s market capitalization and sector/industry, then lays out quarterly fundamentals—Sales, Sales QoQ%, PAT, PAT QoQ% and OPM%—across the most recent four fiscal quarters (dynamically labeled by month and year). It pulls data via request.financial(), formats large numbers into lakhs/crores, calculates quarter‐over‐quarter growth, and sizes text for clarity, giving swing traders an at‐a‐glance view of key fundamental trends alongside price action.
Pine Script® indicator
by trading_kris
Sharpe & Sortino Ratio PROSharpe & Sortino Ratio PRO offers an advanced and more precise way to calculate and visualize the Sharpe and Sortino Ratios for financial assets on TradingView. Its main goal is to provide a scientifically accurate method for assessing the risk-adjusted performance of assets, both in the short and long term. Unlike TradingView’s built-in metrics, this script correctly handles periodic returns, uses optional logarithmic returns, properly annualizes both returns and volatility, and adjusts for the risk-free rate — all critical factors for truly meaningful Sharpe and Sortino calculations. Users can customize the rolling analysis window (e.g., 252 periods for one year on daily data) and the long-term smoothing period (e.g., 1260 periods for five years). There’s also an option to select between linear and logarithmic returns and to manually input a risk-free rate if real-time data from FRED (the 3-Month T-Bill Rate via FRED:DGS3MO) is unavailable. Based on the chart’s timeframe (daily, weekly, or monthly), the script automatically adjusts the risk-free rate to a per-period basis. The Sharpe Ratio is calculated by first determining the asset’s excess returns (returns after subtracting the risk-free return per period), then computing the average and standard deviation of those excess returns over the specified window, and finally annualizing these figures separately — in line with best scientific practices (Sharpe, 1994). The Sortino Ratio follows a similar approach but only considers negative returns, focusing specifically on downside risk (Sortino & Van der Meer, 1991). To enhance readability, the script visualizes the ratios using a color gradient: strong negative values are shown in red, neutral values in yellow, and strong positive values in green. Additionally, the long-term averages for both Sharpe and Sortino are plotted with steady colors (teal and orange, respectively), making it easier to spot enduring performance trends. Why calculating Sharpe and Sortino Ratios manually on TradingView is necessary? While TradingView provides basic Sharpe and Sortino Ratios, they come with significant methodological flaws that can lead to misleading conclusions about an asset’s true risk-adjusted performance. First, TradingView often computes volatility based on the standard deviation of price levels rather than returns (TradingView, 2023). This method is problematic because it causes the volatility measure to be directly dependent on the asset’s absolute price. For instance, a stock priced at $1,000 will naturally show larger absolute daily price moves than a $10 stock, even if their percentage changes are similar. This artificially inflates the measured standard deviation and, as a result, depresses the calculated Sharpe Ratio. Second, TradingView frequently neglects to adjust for the risk-free rate. By treating all returns as risky returns, the computed Sharpe Ratio may significantly underestimate risk-adjusted performance, especially when interest rates are high (Sharpe, 1994). Third, and perhaps most critically, TradingView doesn’t properly annualize the mean excess return and the standard deviation separately. In correct financial math, the mean excess return should be multiplied by the number of periods per year, while the standard deviation should be multiplied by the square root of the number of periods per year (Cont, 2001; Fabozzi et al., 2007). Incorrect annualization skews the Sharpe and Sortino Ratios and can lead to under- or overestimating investment risk. These flaws lead to three major issues: • Overstated volatility for high-priced assets. • Incorrect scaling between returns and risk. • Sharpe Ratios that are systematically biased downward, especially in high-price or high-interest environments. How to properly calculate Sharpe and Sortino Ratios in Pine Script? To get accurate results, the Sharpe and Sortino Ratios must be calculated using the correct methodology: 1. Use returns, not price levels, to calculate volatility. Ideally, use logarithmic returns for better mathematical properties like time additivity (Cont, 2001). 2. Adjust returns by subtracting the risk-free rate on a per-period basis to obtain true excess returns. 3. Annualize separately: • Multiply the mean excess return by the number of periods per year (e.g., 252 for daily data). • Multiply the standard deviation by the square root of the number of periods per year. 4. Finally, divide the annualized mean excess return by the annualized standard deviation to calculate the Sharpe Ratio. The Sortino Ratio follows the same structure but uses downside deviations instead of standard deviations. By following this scientifically sound method, you ensure that your Sharpe and Sortino Ratios truly reflect the asset’s real-world risk and return characteristics. References • Cont, R. (2001). Empirical properties of asset returns: stylized facts and statistical issues. Quantitative Finance, 1(2), pp. 223–236. • Fabozzi, F.J., Gupta, F. and Markowitz, H.M. (2007). The Legacy of Modern Portfolio Theory. Journal of Investing, 16(3), pp. 7–22. • Sharpe, W.F. (1994). The Sharpe Ratio. Journal of Portfolio Management, 21(1), pp. 49–58. • Sortino, F.A. and Van der Meer, R. (1991). Downside Risk: Capturing What’s at Stake in Investment Situations. Journal of Portfolio Management, 17(4), pp. 27–31. • TradingView (2023). Help Center - Understanding Sharpe and Sortino Ratios. Available at: www.tradingview.com (Accessed: 25 April 2025).
Pine Script® indicator
by EdgeTools
Williams Percent Range proWilliams Percent Range with Divergences (Williams %R Div) Description: This indicator enhances the traditional Williams %R oscillator by detecting both Regular Divergence and Hidden Divergence directly on the %R line. It helps traders spot potential trend reversals and trend continuations with high precision. Key Features: Williams %R calculation (standard, normalized between -100 and 0). Pivot-based detection of divergences: Regular Bullish Divergence: Price makes a lower low, but %R makes a higher low → potential upward reversal. Regular Bearish Divergence: Price makes a higher high, but %R makes a lower high → potential downward reversal. Hidden Bullish Divergence: Price makes a higher low, but %R makes a lower low → potential trend continuation upward. Hidden Bearish Divergence: Price makes a lower high, but %R makes a higher high → potential trend continuation downward. Customizable settings: Enable/disable Regular and Hidden Divergences separately. Customize colors for each divergence type. Visual plotting: Divergence signals are marked with labels (Bull, Bear, H Bull, H Bear) directly on the %R panel. Built-in alert conditions: Instant alerts when a Regular or Hidden Divergence is detected. Usage Recommendation: Regular Divergences are best used to anticipate trend reversals. Hidden Divergences are useful for confirming trend continuations. Combining divergence detection with key support/resistance levels, candlestick patterns, or moving averages can significantly enhance trading accuracy.
Pine Script® indicator
by muathuquadi1711
NR4/NR7 + 2BarNR/3BarNR + Trend + Refined MACD + VWAP📜 Description: NR4, NR7, 2-Bar NR, and 3-Bar NR Compression Scanner with Trend & Momentum Filters This script identifies extreme price compressions (NR4, NR7, 2-Bar NR, 3-Bar NR) combined with strict trend and momentum conditions for higher-probability setups. It’s not just about spotting contraction — it’s about ensuring the right environment for expansion. The scanner conditions are: NR4 and NR7 patterns: Today's range must be the narrowest compared to the last 4 or 7 days. 2-Bar and 3-Bar Narrow Ranges: The narrowest two or three day ranges compared to the last 20 sets of two/three days. Trend filter: Price must be above the 20 EMA. The 10 EMA must be above the 20 EMA. MACD proximity filter: The MACD fast line must either be above the slow line or within 5% range below the slow line. VWAP filter: Price must be trading above VWAP. Visuals: Background colours highlight detected compression patterns aligned with trend. Shape markers above or below bars for quick visual confirmation. 📈 Why Use This? Some have said that trading is a waiting game. I won't say they're wrong. This scanner doesn't just throw every tight-range day at you. It finds the coils in context — trending, gaining momentum, ready to spring. If you chase trades like a fool in a brothel, you'll get taken for a ride. If you wait for the right compression, at the right moment, with the right backing... Well, let's just say, you might just start looking like you actually know what you're doing. 🛠️ Built for Traders Who: Prefer strong trends over messy ranges. Want systematic setups, not random guessing. Like stacking probabilities rather than praying to the trading gods. Enjoy catching breakouts when everyone else is still scratching their heads.
Pine Script® indicator
by LordRobrecht
Event-Based Multi MA v1.1📈 Event-Based Multi MA v1.1 — Smart Trading with Dynamic MA Updates Overview In a world where most moving averages blindly follow every candle, Event-Based Multi MA v1.1 introduces a smarter logic: ➡️ Update moving averages only when significant price movements occur. Forget the noise. Focus on what's important. This indicator recalculates your moving averages only after meaningful price shifts, allowing you to spot true trends and avoid market whipsaws. Key Features ✅ Event-Driven Logic Set events based on: Points: Absolute price change Percent: Relative price movement ATR: Volatility-adjusted dynamic movement ✅ Seven Fully Customizable Moving Averages (MA1–MA7) Each MA offers: Custom timeframe Selection of types (EMA, SMA, WMA, VWMA, HMA, LSMA, DEMA, TEMA, ALMA, RMA) Adjustable lengths and colors ✅ Reduced Market Noise MAs adjust only after important price actions — cutting down lag and false signals. ✅ Multi-Timeframe Analysis You can blend moving averages from different timeframes (e.g., 15m, 1H, Daily) into a single chart — perfect for professional multi-frame strategy building. Settings Explained Event Trigger Type: Select Points, Percent, or ATR-based movement. Event Threshold: The amount of price movement needed to trigger a new calculation. ATR Length: If ATR mode is selected, this controls the sensitivity. Each Moving Average (MA1 to MA7) has: MA Type: Choose the smoothing method that suits your trading style. Length: The number of bars used in the calculation. Color: Customize visual styling. Timeframe: Load MAs from different timeframes into your current chart. How to Use It in Trading 🔹 Trend Confirmation Wait for event-triggered updates. Fresh MAs after a significant move are much stronger signals than constantly refreshing MAs. 🔹 Momentum Breakouts Combine short-term (e.g., MA1, MA2) and long-term (e.g., MA5, MA6) MAs. When short-term MAs cross above/below long-term after an event, it's a powerful breakout cue. 🔹 Dynamic Support/Resistance Use slow-moving MAs like 100-200 length across different timeframes. The event-based recalculation keeps them relevant to recent major price moves. 🔹 Volatility Filters Switch to ATR-based events to adapt moving average updates during volatile periods and calm markets. Why It Beats Traditional Moving Averages 🚀 No More Overfitting to Every Candle You focus only on impactful price changes. 🚀 Multi-Timeframe Flexibility Blend micro and macro views seamlessly in one chart. 🚀 Cleaner Signals, Less Noise Event-triggered recalculations filter out useless minor price wobbles. 🚀 Customization Beyond Standard MAs TEMA, HMA, ALMA, DEMA, VWMA — all included for ultra-fine-tuned strategies. ✨ Ready to Upgrade Your Trading? Forget the old, slow MAs. Use intelligence. Trade events, not noise. → Add Event-Based Multi MA v1.1 to your chart and experience true precision!
Pine Script® indicator
by BitcoinHunterAnalytics
Williams Percent Range proOverview Williams Percent Range Pro is a powerful divergence detection tool based on the Williams %R oscillator. It automatically identifies and plots regular and hidden divergences between price action and the %R oscillator, providing traders with early indications of potential trend reversals or trend continuations. This indicator enhances the classic Williams %R by adding intelligent divergence detection logic, customizable visualization, and integrated alert conditions — making it a highly versatile tool for both manual and automated trading. Features Automatic Divergence Detection Regular Divergence (signals trend reversals) Hidden Divergence (signals trend continuations) Customizable Settings Period length, source price, color customization for each divergence type Visual Enhancements Overbought, Mid, and Oversold levels (-20, -50, -80) Shaded background for easier visual interpretation Pivot Detection Identifies key swing points on the Williams %R line for divergence comparison Integrated Alerts Set up alerts for each type of divergence without coding Lightweight and Optimized Designed for fast loading and efficient operation on any timeframe How It Works Williams %R Calculation The script calculates the Williams %R as follows: %R = 100 × (Close - Highest High over Period) ÷ (Highest High - Lowest Low) This results in a value that moves between -100 and 0, indicating overbought and oversold conditions. Pivot Detection The indicator uses pivot highs and pivot lows on the %R line to determine important swing points. Pivot logic is based on comparing neighboring candles (5 bars to the left and 5 bars to the right by default). Divergence Detection 1. Regular Divergence Regular Bullish Divergence: Price makes a Lower Low Williams %R makes a Higher Low → Signals potential upward reversal Regular Bearish Divergence: Price makes a Higher High Williams %R makes a Lower High → Signals potential downward reversal 2. Hidden Divergence Hidden Bullish Divergence: Price makes a Higher Low Williams %R makes a Lower Low → Signals potential upward continuation Hidden Bearish Divergence: Price makes a Lower High Williams %R makes a Higher High → Signals potential downward continuation Each type of divergence is plotted with a specific label and customizable color on the indicator. Input Parameters Input Description Length Period length for Williams %R calculation (default: 14) Source Data source (default: Close) Show Regular Divergence Enable/disable regular divergence detection Show Hidden Divergence Enable/disable hidden divergence detection Regular Bullish Color Color for regular bullish divergence labels Regular Bearish Color Color for regular bearish divergence labels Hidden Bullish Color Color for hidden bullish divergence labels Hidden Bearish Color Color for hidden bearish divergence labels Visual Elements Horizontal Lines: -20: Overbought zone -50: Mid-level (dashed line) -80: Oversold zone Background Shading: Fills between -20 and -80 for better visual focus on active trading zones. Divergence Labels: Bull = Regular Bullish Divergence Bear = Regular Bearish Divergence H Bull = Hidden Bullish Divergence H Bear = Hidden Bearish Divergence Each label appears exactly at the pivot points of the Williams %R line, offset slightly for clarity. Alerts You can create TradingView alerts based on the following conditions: Regular Bullish Divergence Detected Regular Bearish Divergence Detected Hidden Bullish Divergence Detected Hidden Bearish Divergence Detected This allows fully automated trading setups or mobile push notifications. Example alert message: "Williams %R Regular Bullish Divergence Detected" Usage Tips Entry Strategy: Combine divergence signals with trend confirmation indicators like EMA/SMA, MACD, or Volume. Exit Strategy: Monitor when price reaches key resistance/support zones or overbought/oversold levels on the %R. Higher Accuracy: Always confirm divergences with price action patterns such as breakouts, candlestick formations, or trendline breaks. Conclusion The Williams Percent Range Pro indicator brings powerful divergence detection and customization features to a classic momentum oscillator. It provides clear visual and alert-based trading signals that help you anticipate major turning points or trend continuations in any market and timeframe. Whether you are a swing trader, day trader, or scalper, this tool can be an essential addition to your technical analysis toolkit.
Pine Script® indicator
by muathuquadi1711
Trend Degree Dashboard (Table)📈 Trend Degree Dashboard (Table) — v1.0 This indicator calculates and displays the trend angle (in degrees) based on the linear regression of the selected source (default: close) over a user-defined lookback period (default: 21 bars). The trend angle gives a quick visual reference of the current market slope — positive (uptrend) or negative (downtrend). A dashboard table shows the trend angle directly on the chart, with a background color: 🟩 Green background for positive angles (uptrend) 🟥 Red background for negative angles (downtrend) 🔧 Features: Customizable Lookback Period: Set the number of candles to consider for trend calculation. Source Selection: Apply the analysis to close, open, high, low, or any other price series. Dashboard Positioning: Choose where the dashboard appears (Top Left, Top Right, Bottom Left, Bottom Right). Clean Table Design: Minimalistic and easy-to-read dashboard with automatic background color highlighting based on trend direction. ⚙️ How It Works: It uses Linear Regression to measure the slope between two consecutive points. Converts the slope into degrees using the arctangent function (atan) for a geometric interpretation of trend strength and direction. Updates the dashboard table live with the latest angle value. ✅ Script Highlights: Non-repainting: Once a bar closes, its value is fixed. Efficient performance: Lightweight table visualization with no heavy calculations. Clear trading signals: Positive angles suggest bullish momentum, negative angles suggest bearish momentum. ⚠️ Disclaimer: This script is a technical analysis tool designed to assist in decision-making but does not guarantee results. Please use it alongside other tools and practice proper risk management. Always test any indicator on demo accounts before applying it to live trading.
Pine Script® indicator
by AimProfits
SPY 0DTE Scalper - Auto AlertsTimeframes: Main chart: 1-minute (for precision entries) Confirmations: 3-minute or 5-minute (to avoid fakeouts) Indicators I Use: VWAP – Orange line → Institutional fair value EMA 9 – Green line → Short-term momentum EMA 21 – Red line → Trend filter Custom Pullback Signal Script – Marks buy/sell/pullback signals with labels (triangles) Above VWAP = Bullish Bias Below VWAP = Bearish Bias Institutions treat this as the "fair price" — so I do too. EMA 9 (Green): If price hugs or bounces off EMA 9 = 🔥 strong continuation move. I use this as my guide for momentum. EMA 21 (Red): Great for trend confirmation. Above EMA 21 = Trend building to the upside. Below EMA 21 = Weakness or possible reversal. 💸 Step 3: How I Read the Signals ✅ BUY Signal: Price breaks above VWAP with volume 1.5x+ average Candle must close strong (not a wickfest) EMA 9 becomes my trailing stop for the move 🚨 SELL Signal: Price breaks below VWAP with strong volume Clean body close below → momentum shift to the downside EMA 9 again = trailing resistance guide 🔵 Pullback Long (Blue Triangle Under Candle): Bullish continuation entry Price pulls back to EMA 9 or 21, but stays above VWAP Low-risk re-entry after a breakout 🟣 Pullback Short (Purple Triangle Above Candle): Bearish continuation entry Price retraces into EMA 9, but stays below VWAP & EMA 21 Ideal for catching second legs after breakdowns
Pine Script® indicator
by M_LOADING
2HH2LL [CCE_Charts]Detects the "Two Higher Highs, Two Lower Lows" (2HH2LL) pattern formation and provides strength analysis with trade signals. The indicator displays visual markers, S/R zones, and clear signals for LONG or SHORT positions. Pattern Description The 2HH2LL pattern consists of two consecutive higher highs and two consecutive lower lows. This formation can signal potential trend reversals or continuations depending on market context. Key Features • Pattern strength analysis using S/R zone and volume confirmation • Clear LONG or SHORT trade signals • Visual markers highlighting pattern components • Support/Resistance zone visualization • Customizable alerts for real-time notifications • Detailed information panel How to Use This Indicator 1. Add the indicator to your chart 2. Configure settings based on your trading style 3. Look for the "2HH2LL" label when a valid pattern forms 4. Check the pattern strength (STRONG, MEDIUM, WEAK) 5. Note the trade direction signal (LONG or SHORT) 6. Verify the pattern with other technical tools 7. Set up alerts for real-time notifications Settings Guide Pattern Settings • Lookback Period: Controls pivot point detection (5-50) • Minimum Swing Strength: Required percentage change between highs/lows Confirmation Settings • S/R Zone Size: Size of support/resistance zone • Volume Confirmation Threshold: Volume multiple required for confirmation • Volume Average Period: Bars used for volume average calculation Visual Settings • Show H1/H2/L1/L2 Labels: Toggle pattern component labels • Show S/R Zone: Toggle support/resistance zone display Signal Settings • Trade Direction: How trade direction is determined (SHORT, LONG, AUTO) Alert Settings • Alert on All Patterns: Trigger alerts for all valid patterns • Alert on STRONG Patterns Only: Only alert on strong patterns • Alert on Direction: Filter alerts by trade direction Pattern Strength Analysis The indicator classifies pattern strength into three categories: • STRONG: Both confirmation factors present (S/R test and volume) • MEDIUM: One confirmation factor present • WEAK: No confirmation factors present For best results, use this indicator in combination with other technical tools and always consider the broader market context.
Pine Script® indicator
by CCE_Charts
StupidTrader Money GlitchStupidTrader Money Glitch This indicator identifies high-probability buy setups by combining key technical concepts. It detects a reclaimed demand zone (a significant low that was broken and reclaimed), confirms bullish market structure breaks (MSB), ensures the price is above the 9 and 21 EMAs, and looks for volume spikes or trends. Key Features: Plots a demand zone (blue box) based on a reclaimed low. Signals long entries (green triangles) when conditions align: reclaimed demand zone, MSB, price above EMAs, and volume confirmation. Includes EMA 9 (blue) and EMA 21 (aqua) for trend confirmation. How to Use: Add the indicator to your chart and look for green triangles below candles as buy signals. Ensure the price interacts with the demand zone, breaks market structure, and shows volume confirmation. Works best on daily or higher timeframes for assets like ONDO, BTC, and more. Settings: Short EMA Length: 9 Mid EMA Length: 21 Pivot Lookback for Demand Zone: 5 Zone Lookback for Demand: 90 Volume Lookback: 20
Pine Script® indicator
by Stupidoooooooooo
Volume by PriceDescription: This Pine Script v6 indicator displays a chart that multiplies the volume by the closing price for each bar. It's often referred to as "monetary volume" or "traded value." This allows for the visualization of monetary activity on a price chart. Technical Insights: - Calculation: The indicator simply multiplies the volume of each bar (volume) by its closing price (close). - Display: The result is plotted as a line in a separate pane below the main price chart. The height of the line at each point represents the product of the volume and the closing price at that time. - Interpretation: - Spikes in Volume * Price: Indicate significant monetary activity. This can signal strong interest in the asset at that price level. - Low Volume * Price: Suggests a lack of interest or conviction. - Divergences: If volume * price increases while the price decreases (or vice versa), it may signal a weakening of the current trend. How to Use: 1. Identify Areas of Interest: Look for significant spikes in the volume * price chart. These areas may coincide with key support or resistance levels. 2. Confirm Trends: A price movement upwards (or downwards) accompanied by an increase in volume * price strengthens the validity of that trend. 3. Spot Divergences: Pay attention to situations where the volume * price does not confirm the price movement. This could indicate a potential reversal. 4. Combine with Other Indicators: Use this indicator in conjunction with other technical analysis tools (moving averages, RSI, MACD, etc.) for a more comprehensive view. Potential Applications: - Breakout Confirmation: A breakout of a price level (support or resistance) accompanied by increased volume * price is a stronger signal than a breakout with low volume. - Identifying High Activity Zones: This indicator can help pinpoint price levels where a lot of trading has occurred, potentially indicating future support/resistance areas. - Analyzing Market Participation: High volume * price suggests strong participation, while low volume * price indicates a lack of interest. - Detecting Divergences: Divergences between volume * price and price can signal potential trend reversals. - Momentum Trading: Combined with other momentum indicators, it can help identify entry and exit points. Important Notes: - This indicator is based on the closing price. It does not take into account the highs and lows of each bar. - Volume * price is an analysis tool, not a standalone trading system. It should be used in conjunction with other indicators and strategies. - The interpretation of volume * price may vary depending on the market and the time frame being analyzed. Feel free to adapt this description to your own style and needs. You can also add concrete examples or screenshots to illustrate its use.
Pine Script® indicator
by DanyBedard2309