For the momentum trader there are plenty of price momentum indicators, here's one that tracks the volume's momentum. Rising momentum in both price and volume is great for any momentum trader. Add this to your chart, play with the settings, and maybe you'll notice something new!
·´¯`·.¸¸.·´¯`· Feel free to follow me to keep up with my latest scripts! ·´¯`·.¸¸.·´¯`· ·´¯`·.¸¸.·´¯`· PLEASE THUMB UP OR STAR IF YOU LIKE THIS INDICATOR! ·´¯`·.¸¸.·´¯`· I'd like as many people as possible to get it :)
Hi TheLark, I was just wondering how I should perceive the signals. If the bar crossed below 0, is it showing:
1) The balance of volume has shifted to a bearish outlook and we should consider only bearish set-ups
or
2) A reduction of volume as a whole, so we'd only look for set-up's once the bar exceeds 0.
Thanks!
CassandraC
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Hi, what does this indicator calculate? The moving average of volume? Thanks!
TheLark
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@CassandraC, This is a transformation of the average. Basically the average compared to itself x periods ago (default is 14). :)
Tsentr
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just checked the code - it is amazing
may your god bless you! :)
Tsentr
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please explain a bit about the formula and how number is defined? Thanks for the indicator )
TheLark
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@Tsentr, Hello again Tsentr, I'm happy to see you've found interest in some of my scripts :)
This script simply takes the average of volume over X bars (the length variable) and then subtracts that current number from X bars ago (again length). Keeping scripts simple, and limiting variables is often beneficial in the design of both indicators and systems, this is why I chose to use the same number for both.
This particular script also allows for changing of average type, each giving a slightly different result. Not exactly necessary, but written more as an example of what is possible in pinescript.
moejama0388
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Using P&F charts for S&D zones then this to confirm the build up in volume leading to support and resistances made me quit the dope boy lifestyle... My mother thanks you.
1) The balance of volume has shifted to a bearish outlook and we should consider only bearish set-ups
or
2) A reduction of volume as a whole, so we'd only look for set-up's once the bar exceeds 0.
Thanks!