Price/Volume Value Histogram — Indicador por dman103

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3994 vizualizações

trendanalysis pricevolumetrend price-volume histogram pricebehavior price-action prices

An interesting implementation of mine to measure an asset changes based on asset price velocity and volume velocity. The indicator acts as asset value calculator. Long and Short.

==Points System Rules==

UPTRENDING
If Current Close is higher than previous Close and Current Volume is bigger than previous Volume: Adds Close Points and Volume Points
Otherwise check
If Current Close is higher than previous Close: Adds Only Close Points

DOWNTRENDING
If Current Close is lower than previous Close and Current Volume is bigger than previous Volume: Reduces Close Points and Volume Points
Otherwise check
If Current Close is lower than previous Close: Reduces Only Close Points

==Plotting==
Result of the values are summed up to a histogram.
Obviously on increasing prices and volume the histogram will be above zero line and on the Bullish side (green color), otherwise, on the Bearish side (red color).

You can't cheat the price movement, it's just what it is.
Optional to smooth it by EMA (set to true by default).

Like if you Like and Enjoy!
Follow for upcoming indicators.

Notas de Lançamento: Updated description.

Notas de Lançamento: Added volume percentage factor - higher the value the less volume will affect histogram (0- normal, 100 - disable volume effect)
Fixed bug when high volume would cause an histogram peek.

Notas de Lançamento: Bug fix for lower histogram value.

Appreciation of my work: https://paypal.me/drorriov

Comentários

interesting script - thank you for sharing.
but i wonder why you needed to use arrays here.

Resposta

RedKTrader

@RedKTrader, Hey, Glad you like it, you are right, it can be done without arrays, but using arrays here can give more flexibility later in case i'll expand it.

Resposta

Hi, do you mean that if current candle close is above previous candle close and the indicator volume bar is higher than previous bar = uptrend?
If so, downtrend means current close is below previous candle close and indicator volume bar closes below the previous indicator volume bar?

A bit confused by instructions and some clarification would be appreciated

Resposta

benjaminwlm

@benjaminwlm,
Hey there, I refer to volume as the volume of each candle. Personally, I don't call it an indicator :)
You are almost correct. Just In downtrend we want to see volume increasing (you wrote decreasing) to detect selling pressure.
If current candle close is above previous candle close: It increases indicator by a factor of current close divided by previous close.
if current candle close is below previous candle close: it decreases indicator by factor of previous close divided by current close.
Volume can also affect the indicator, for example if we find the volume is increasing (current candle volume is bigger than previous candle volume) we also increase or decrease the indicator depending on what stated previously about current close and previous close.
Try to look at the code where it says: "//Positive" for uptrend and "//Negative" for downtrend calculations.

Resposta

dman103

@dman103, Hi, thanks so much for the reply. May I confirm when you say volume increasing and candle close below previous candle, means that the histogram goes up? I noticed that in most cases when price goes down, the volume turns red and the red bars increase in length. (forms a downward slope in a sense)

Does the red bars increasing in length mean that volume is increasing just in terms of selling pressure? Or does the red bar increasing in length mean that volume is decreasing?

Resposta

benjaminwlm

@benjaminwlm, for example, for the AUDCHF chart on the Daily time frame, the price drops like crazy and the volume seems to go down? So does that mean it's not considered a downtrend because it became so red and the red kept falling? Or does it work inversely where as red becomes larger and candles close below previous, it's in a downtrend?

Resposta

benjaminwlm

@benjaminwlm, 19Feb - 19 Mar 2020

Resposta

benjaminwlm

@benjaminwlm, Remember that the indicator is smoothed by an Exceptional Moving Average (EMA) which means the results are adapted to the EMA, Let's do an experiment, in the indicator settings, disable EMA and set 'Look back' to 1, that way you'll see the PURE indicator without any Look backs and Smoothing. When i checked AUDCHF it's volume pretty much increases hard on that Corona fall, notice the indicator is effected and reaches a deep bottom. On the fall date the indicator red columns are gettings lower and lower because of current closes is below previous closes and also respectively downtrend volume is increasing.

Resposta

dman103

@dman103, Ah, i see. So when price goes below 0 and the more it goes negative, volume is increasing but because of downtrend volume increasing. As for above 0, the more positive, the stronger the uptrend volume. Am I right to say that?

Resposta

benjaminwlm

@benjaminwlm, oh, this indicator doesn't reflect solely on the volume, it mainly indicates the close price velocity, actually i assume volume effect around 25% of the indicator calculations.
Yes, red (below 0) usually indicates downtrend of the asset and the lower it is the more deep the downtrend is. When indicators goes below zero (red) it means asset prices are declining and volume can helps boost the indicator decline or not, if price is declining and volume is also dropping, in that condition, it won't take the volume into calculations, but just calculate the close prices ignoring the volume.

Resposta