Price and Volume Analysis

Price-Volume Analysis Labels (PVA)SummaryThis indicator provides simple, at-a-glance insights into the relationship between price movement and trading volume. It plots clear labels on the chart to signify four key scenarios, helping traders quickly assess the strength and conviction behind price action. By analyzing whether volume is confirming or diverging from the price trend, you can gain a deeper understanding of market dynamics.How It WorksThe script analyzes each candle in relation to the previous one and checks two things:Did the price increase or decrease?Did the volume increase or decrease?Based on the combination of these two factors, it plots one of four labels on the chart.The Labels ExplainedThis indicator uses four distinct labels to mark specific price-volume conditions:X (Green, Above Candle): Price Increased & Volume IncreasedWhat it means: This is often seen as a bullish confirmation. The rising price is supported by rising volume, suggesting strong buying interest and conviction behind the upward move.X1 (Blue, Below Candle): Price Increased & Volume DecreasedWhat it means: This indicates potential weakness in the uptrend. Although the price is rising, the decreasing volume suggests that fewer participants are driving the move. This could be a warning sign of a potential reversal or exhaustion.Z (Red, Above Candle): Price Decreased & Volume IncreasedWhat it means: This is often seen as a bearish confirmation. The falling price is accompanied by rising volume, suggesting strong selling pressure and conviction behind the downward move.Z1 (Orange, Below Candle): Price Decreased & Volume DecreasedWhat it means: This indicates potential weakness in the downtrend. The price is falling, but on diminishing volume. This could signal that sellers are losing momentum, and the downtrend may be nearing its end.How to Use in Your TradingThis indicator is not a standalone trading system but a powerful tool for confluence and analysis. Use these labels to:Confirm Trend Strength: Look for "X" in an uptrend and "Z" in a downtrend to confirm the move has momentum.Spot Potential Reversals: Be cautious when you see "X1" during a rally or "Z1" during a sell-off, as these can be early signs of a trend losing steam.Enhance Other Indicators: Use these signals in combination with your other favorite tools like moving averages, RSI, or support and resistance levels to build a more robust trading strategy.Feel free to adjust the colors in the script's settings to match your chart's theme. Happy trading!Disclaimer: This script is for educational and informational purposes only. Trading involves risk, and past performance is not indicative of future results. Always do your own research and risk management before making any trading decisions.