BuySell%_ImtiazH_v2

6 thg 12, 2024

BuySell%_ImtiazH
This indicator includes two powerful volume metrics to complement your trading analysis:

30-Day Avg Vol (Blue Line): Tracks the average volume over the past 30 days, providing a baseline for typical trading activity.
Breakout Vol (White Line): Highlights the volume threshold needed for a potential breakout, calculated as a user-defined percentage above the 30-day average volume (default: 40%).

In addition to these enhancements, the indicator breaks down total trading volume into buying and selling components and calculates the percentage of buy volume for each bar.

🟥 Red Bars: Represent total volume.
🟩 Teal Bars: Show the buying volume within each candle.
🟨 Buy %: Displays the percentage of buy volume dynamically in the indicator panel, highlighted in yellow for quick visibility.

Use this tool to easily spot accumulation (buying pressure) or distribution (selling pressure) trends, customize breakout thresholds, and identify key breakout opportunities. Simple, clear, and effective for volume-based analysis!

How Are Buy Volume and Sell Volume Calculated?
This indicator uses a proportional approach to estimate buy and sell volumes based on price action:

Buy Volume: The portion of total volume where the price is moving upward, representing trades executed at the ask price.
Formula:
Buy Volume = (close - low) / (high - low) * volume

Sell Volume: The portion of total volume where the price is moving downward, representing trades executed at the bid price.
Formula:
Sell Volume = (high - close) / (high - low) * volume

If the high and low prices are the same (flat bar), both buy and sell volumes are set to 0.

Why This Matters
This calculation assumes the close price’s position within the high-to-low range reflects the balance of buying and selling activity:

Close near the high: Most volume is buy volume.
Close near the low: Most volume is sell volume.
Close in the middle: Volume is split between buying and selling.

By breaking down volume in this way, the indicator helps traders identify key trends like accumulation (buying pressure) and distribution (selling pressure), making it a powerful tool for volume-based analysis.