OPEN-SOURCE SCRIPT
Volume Flow Indicator [LazyBear]
VFI,introduced by Markos Katsanos, is based on the popular On Balance Volume (OBV) but with three very important modifications:
* Unlike the OBV, indicator values are no longer meaningless. Positive readings are bullish and negative bearish.
* The calculation is based on the day's median (typical price) instead of the closing price.
* A volatility threshold takes into account minimal price changes and another threshold eliminates excessive volume.
A simplified interpretation of the VFI is:
* Values above zero indicate a bullish state and the crossing of the zero line is the trigger or buy signal.
* The strongest signal with all money flow indicators is of course divergence.
I have exposed options to plot a signal EMA. All parameters are configurable.
Markos suggests using 0.2 coeff for day trading and 0.1 for intra-day.
More info:
precisiontradingsystems.com/VOLUME_FLOW.htm
* Unlike the OBV, indicator values are no longer meaningless. Positive readings are bullish and negative bearish.
* The calculation is based on the day's median (typical price) instead of the closing price.
* A volatility threshold takes into account minimal price changes and another threshold eliminates excessive volume.
A simplified interpretation of the VFI is:
* Values above zero indicate a bullish state and the crossing of the zero line is the trigger or buy signal.
* The strongest signal with all money flow indicators is of course divergence.
I have exposed options to plot a signal EMA. All parameters are configurable.
Markos suggests using 0.2 coeff for day trading and 0.1 for intra-day.
More info:
precisiontradingsystems.com/VOLUME_FLOW.htm
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
List of my free indicators: bit.ly/1LQaPK8
List of my indicators at Appstore: blog.tradingview.com/?p=970
List of my indicators at Appstore: blog.tradingview.com/?p=970
Aviso legal
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
List of my free indicators: bit.ly/1LQaPK8
List of my indicators at Appstore: blog.tradingview.com/?p=970
List of my indicators at Appstore: blog.tradingview.com/?p=970
Aviso legal
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.