Volume Flow Ratio

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Volume Flow Ratio (VFR) Indicator

Overview
The Volume Flow Ratio (VFR) is a sophisticated volume analysis tool that measures current trading volume relative to the maximum volume of the previous period. Unlike traditional volume indicators that show raw volume or simple moving averages, VFR provides context by comparing current activity to recent maximum activity levels.

Core Features

1. Split Period Analysis
- Multiple Timeframe Options:
- Daily: Compares to previous day's maximum
- Weekly: Week-to-week comparison
- NYSE Weekly: Specialized for stock market trading (Monday-Friday only)
- Monthly: Month-to-month analysis
- Quarterly: Quarter-to-quarter perspective
- Yearly: Year-over-year volume comparison

2. Ratio-Based Measurement
- Displays volume as a ratio (0 to 1+) rather than raw numbers
- 1.0 represents volume equal to previous period's maximum
- Example: If previous max was 50,000 contracts:
- Current volume of 25,000 shows as 0.5
- Current volume of 75,000 shows as 1.5

3. Triple Coloring Modes
- Moving Average Based:
- Compares current ratio to its moving average
- Customizable MA period
- Green: Above MA (higher than average activity)
- Red: Below MA (lower than average activity)
- Previous Candle Comparison:
- Simple increase/decrease from previous bar
- Green: Higher than previous bar
- Red: Lower than previous bar
- Candle Color Based:
- Syncs with price action
- Green: Bullish candles (close > open)
- Red: Bearish candles (close < open)

Primary Use Cases

1. Volume Profile Analysis
- Perfect for traders who need to understand when markets are most active
- Helps identify unusual volume spikes relative to recent history
- Useful for timing entries and exits based on market participation

2. Market Activity Traders
Ideal for traders who:
- Need to identify high-liquidity periods
- Want to avoid low-volume periods
- Look for volume breakouts or divergences
- Trade based on institutional participation levels

3. Mean Reversion Traders
Helps identify:
- Overextended volume conditions (potential reversals)
- Volume exhaustion points
- Return to normal volume levels after spikes

4. Momentum Traders
Useful for:
- Confirming trend strength through volume
- Identifying potential trend exhaustion
- Validating breakouts with volume confirmation

Advantages Over Traditional Volume Indicators

1. Contextual Analysis
- Shows relative strength rather than raw numbers
- Easier to compare across different time periods
- Automatically adjusts to changing market conditions

2. Period-Specific Insights
- Respects natural market cycles (daily, weekly, monthly)
- Special handling for NYSE trading days
- Eliminates weekend noise in stock market analysis

3. Flexible Visualization
- Three distinct coloring methods for different trading styles
- Clear reference line at 1.0 for quick analysis
- Histogram style for easy pattern recognition

Best Practices

For Day Traders
- Use Daily split for intraday volume patterns
- MA coloring mode with shorter periods (5-10)
- Focus on ratios during market hours

For Swing Traders
- Weekly or NYSE Weekly splits
- Longer MA periods (15-20)
- Look for sustained volume patterns

For Position Traders
- Monthly or Quarterly splits
- Candle color mode for trend confirmation
- Focus on major volume shifts

Limitations
- Requires one full period to establish baseline
- May be less effective in extremely low volume conditions
- NYSE Weekly mode specific to stock market hours


This indicator is particularly valuable for traders who understand that volume is a crucial component of price action but need a more sophisticated way to analyze it than simple volume bars. It's especially useful for those who trade based on market participation levels and need to quickly identify whether current volume is significant relative to recent history.

15 thg 4

Phát hành các Ghi chú

- Added Auto Split Mode

15 thg 4

Phát hành các Ghi chú

- Upgraded to V6

16 thg 4

Phát hành các Ghi chú

- Added Multiple Levels

18 thg 4

Phát hành các Ghi chú

- Added Delta

30 thg 4

Phát hành các Ghi chú

- Added Candle Range (TR / Open - Close)

2 thg 5

Phát hành các Ghi chú

- Added Polarity Mode for Candle Ranges
- Added Divergence For Histograms

10 thg 5

Phát hành các Ghi chú

- Added New Modes
- Added New Split (NYSE DAILY)

10 thg 5

Phát hành các Ghi chú

- Fixed an Issue where illiquid price actions were skewing ratios

18 thg 5

Phát hành các Ghi chú

- Clean-up and VPP Mode

28 thg 5

Phát hành các Ghi chú

- Compatibility Fix for Tick Charts
- MA Mode now shows absorption and exhaustion

30 thg 5

Phát hành các Ghi chú

- General Cleanup
- Fixed Issue where Values were null when they shouldn't

6 thg 6

Phát hành các Ghi chú

- Fixed MA Coloring

11 thg 6

Phát hành các Ghi chú

- Split Percentage Volume

12 thg 6

Phát hành các Ghi chú

- High Res Added

13 thg 6

Phát hành các Ghi chú

- Now Works on Tick Charts

18 thg 6

Phát hành các Ghi chú

- Momentum Volume Colouring

23 thg 6

Phát hành các Ghi chú

- Now Displays Burps

24 thg 6

Phát hành các Ghi chú

- More Exhaustion Patterns

7 thg 7

Phát hành các Ghi chú

- Hide Below Average Volume

19 thg 7

Phát hành các Ghi chú

- Big Session Based Update

19 thg 7

Phát hành các Ghi chú

- 5 Minute use Session on Auto

20 thg 7

Phát hành các Ghi chú

- VFR