When "Baseline Chart" option is disabled, it looks similar to regular . The bars has two shades of green and red. The dark shade shows amount of accumulation and the light shade shows total (what you see on a regular indicator). Blue line is the moving average (or cumulative total) of A/D and the gray line is for total .
When money is enabled, it multiplied by price. As you can see in the chart below, trade in terms of USD was declining after ATH . This is not the case in regular chart which shows instrument (chart above).
In Baseline view, the aggregation method you choose can turn it into different indicators. With / aggregation, blue and gray line shows buy/sell pressure. At 0, there is not buy or sell pressure.
If you turn off bars (from style menu), it gives you a reliable indicator to measure divergence. This should be more reliable than most other range-bound indicators (i.e. , , CMF ). I will publish a TA about correctly measuring divergence (it's a must read even if you are a pro trader). Make sure that the length is set to a large number on smaller TFs such as 4h.
For following results, set aggregation to cumulative and turn off money volume:
When wick weight=0, the GRAY line is identical to OBV indicator.
When normalized by spread and wick weight=10, the BLUE line is identical to ADL (improved by true range).
When normalized by previous bar price, wick weight=0, the BLUE line is identical to PVT.
How I use this indicator:
- Baseline chart, replaced my regular indicator
- Mostly 4h TF for divergence
- aggregation (and occasional cumulative aggregation) with length above 50. I change the length to 100 and 200 for confirmation.
- Wick weight=0 or max 2.
With this indicator, you can learn how different indicators are built and how they are different from each other. I will publish a TA to explain more about different indicators and their pros and cons.
I will publish this indicator without bars and additional options to make it range bound.
- changed the default chart mode
Với tinh thần của TradingView, tác giả đã xuất bản tập lệnh theo mã nguồn mở, vì thế trader có thể dễ dàng hiểu và tùy chỉnh được. Bạn có thể sử dụng miễn phí, hoặc tùy chỉnh lại mã đã được cấp phép bởi Quy tắc Chung. Bạn có thể sử dụng nó trên biểu đồ.