Volume Pressure Analysis is a new concept I have been working on designed to show the effort required to move price. An ideal tool for confirming trends or locating reversals early. This indicator can highlight whale action and market manipulation. It calculates volume vs volatility and displays the results as a meter: Above 0 shows how easy price action is traveling, the bigger these bars the less volume and effort is required to push price. These are indicated with a teal or red arrows and can confirm the beginning or continuation of a trend. This is the natural direction the chart wants to travel at that time. Below 0 shows how hard price is to move. The bigger these bars the more volume and effort is required to push price. When whales and market makers push price against its will these bars will get bigger. Yellow arrows signal pressure in that direction and excessive amounts of volume is required to move price. These signals can lead to reversal/ pivot points as price action struggles to continue its trend. These signals can be turned on in settings or use the overlay version of this script to display signals on chart. This is a very powerful tool when used with relative volume.
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This update includes 2 new themes: RVOL Analysis: Shows support and resistance flow over relative volume bars RVOL: Shows only the resistance flow and highlights anomalies. This is great to get an idea of buy/sell pressure for each candle.
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Updated RVOL theme and made it default. Now shows live pressure information on current bar and highlights past pressure anomalies.
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This update includes 5 Themes and 3 widget options. I updated all the original themes to function and look better. I maxed out on this script so no room for future additions. In the future I will be using widgets in my scripts to utilize extra space avail on right of indicators. RVOL Analysis is now default theme.
THEMES: Pressure Analysis: Shows support and resistance of price action. Teal color signals Support and positive pressure going with the direction of the candle. Red shows resistance pressure. Teal and Red represent support and resistance, not buy and sell. Support Vs Resistance: This is the pressure analysis but with no minus scale. Teal = Support / Red = Resistance. ( If chart candle is red and S and R bar is teal it means that the price wants to travel down. Directional Pressure: Show the direction of the pressure. Teal = Buy pressure, Red = Sell pressure RVOL Analysis: RVOL analysis Shows all pressure data agains RVOL RVOL: Cleaner version of RVOL Analysis.
WIDGETS: Support Vs Resistance: Shows last 10 bars of S and R theme Directional Pressure: Shows last 10 bars of Directional Pressure theme Support Vs Resistance + Directional Pressure: Shows both widgets.
EXTRAS: Relative Volatility: Can display on RVOL Analysis them or on widget. Directional Pressure Percentage %: Shows percentage of directional pressure for last 10(customizable) bars. Displayed under volume total. Teal = buy pressure, Red = sell pressure
Hi!! I really find your indicator very informative and very useful if only I knew how to interpret it. I am just getting started in trading and feel overwhelmed. I have a few questions if you don't mind. This can help me understand the information that the indicator is giving.
1. What does the numbers in yellow, blue, red and green represent?
2. Regarding the widgets (support & resistance and others...), There are multiple bars, do they all mesure just the on going candle or others candles in the past as well? Does the red bars represent potential limit sell orders at resistance?
These are probably stupid questions but to be honest I can't figure it out and need your help if possible. Thank you in advance and hope to hear back from you.
veryfid
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@thiti208, Hi and welcome. I am more than happy to answer any questions, this is a somewhat overwhelming indicator as it presents the data is so many variations.
the numbers on top right:
yellow: RVOL (relative volume calculation)
blue: average volume for last 30 bars
teal/red: current volume
teal/red %: Direction pressure %. This calculates what direction the pressure is travelling and by how much percent over the last 10 bars.
The widgets are just the last 10 bars of the S and R theme and directional pressure theme.
If you are new to trading I recommend not worrying about such things. On the S and R theme/widget red means resistance and teal is support. So if the current candle is red and the S and R bar is teal it means that it has support in downward direction. Lots of resistance tends to lead to reversals. lots of support tends to confirm/ start new trends.
On the other hand directional pressure shows the direction of the pressure so teal is buying pressure and red is selling pressure (much simpler), this is the direction the chart wants to travel. This is an incredibly powerful indicator but keep in mind that too much information can be a problem for traders. I recommenced you try Boom Hunter Pro for finding entries.
Good Luck!
thiti208
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@veryfid,
Thank you very much for your prompt return. I will follow your advise and hopefully back when I’ll have more experience in trading. I will definitely keep an eye on your work and thanks again. You have been a great help.
Hey just a heads up to anyone stopping by... I will be releasing an update in the next couple days. It displays the data as traditional volume bars but also includes rvol entries and a few extra goodies.
Thank you for the informative and jam packed script, still working my way around it.
Question regarding the bars on the script. What do the very light blue and the very light red bars signify, when running the script in RVol Analysis mode?