I present to you guys my new indicator Volume per Point (VP)
As suggested by the title, this script gives you the volume for every point. Here's a run down on specific features:
SUBCHART COLUMNS: The columns can be the following four colors: Green - There was an increase in VP Red - There was a decrease in VP Yellow - There was divergence between volume and candle range Purple - There are signs of exhaustion compared to the previous candlestick
SUBCHART HISTOGRAM: The histogram can be the following two colors: Lime - Buying volume Red - Selling volume
I left you guys the ability to change the multiplier on the volume in settings just incase it's too small or too big compared to the VP. Decimals are allowed!
CANDLESTICK CHART: The candlesticks can the following two colors: Yellow - There was a divergence between volume and candle range Purple - There are signs of exhaustion compared to the previous candlestick
FILTERS In the settings, you're able to add the following two filters: RSI Filters - RSI must be below or above the specified value for the divergence or exhaustion to trigger Percent Filters - The candlestick range or volume must be higher or lower than the specified value depending whether it's divergence or exhaustion.
This is a very helpful tool if you're interesting in reading volume. It also facilitates finding market maker activity depending on the size of the VP. Sudden abnormal spikes in VP usually do signal something and that's up for you to figure out :)
Thank you for your time to read this ~July <3
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Changes:
By default, volume is now disabled
Now adds a red dot to the subchart column if there it detects an abnormal spike
You can re-enable volume and change the tolerance level for abnormal spikes via the "Multipliers" section in the settings :)
This script is meant to better analyze volume and detects unusual volume activity.
Abnormal VP - When the volume based on the candle range is abnormally compressed. I like to think of this as a spring that can burst either direction. Generally, no matter the color, the higher the Volume per Point column, the more compressed it is. Your price action/pattern skills may help decide its future direction.
Volume Divergence - When the range is smaller than the previous candlestick but has greater volume. Hypothetically, this means there is a struggle between buyers and sellers. May signify the end of a trend or heavy continuation. Again, you can also think of this as a spring that can burst either direction. Price action/pattern analysis may also help with this one.
Volume Exhaustion - When the range is longer, but has less volume. Hypothetically, this means its current trend is getting weak and is 'running out of breath'. An example of how I use this is if I see a breakout with volume exhaustion, I tend to play it safer or simply not play it at all.
Also different securities may have different personalities. Playing around with the filters on different timeframes can give more accurate signals.
For example, on TSLA daily, I use the following:
| Abnormal VP Multiplier - 1.35
| Volume Percent Difference - 7
| Length Percent Difference - 22
Just using the Abnormal VP and Volume Divergences, I have been able to nail just about every move.
Hope this helps :)
~ July
rafaelcoisaa
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@JulyVibes, in the histogram why is the pink value always greater than the green? do these values not represent the volume of buys and sells? Sometimes you have more buyers than sellers, so shouldn't that vary? Thanks for the script and for your time.
vardanmishra09
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@JulyVibes, thankyou but could you please help me I am from India and I am trading in options stocks and index in small timeframe like 3m or 5m could you please guide me about this
OrcChieftain
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@rafaelcoisaa, Try Anna Coulling's books if you want to study volume further. She might be using correlational and fundamental analysis too, but her main edge is volume interpretation and she has many good books about that. @JulyVibes 's indicator is pretty good at interpreting common one-candle anomalies and I really like what it is doing. But its possible to go deeper than that :)
decanfrosty
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@OrcChieftain, Well it has helped me enormously.Im just wanting to fine tune it with the percent filter as i cant seem to get my head around that properly atm.One of my favourite indicators .Works atreat,thankyou Julie
Linktind
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@JulyVibes , thanks for interesting indicator. I have noticed that sometimes according to your indicator we have a green bar (indicating a net positive volume) but the price is going down significantly. For example look below, I have marked such a case with white arrows. Could you please elaborate on this?
Also, what does an option "length percent difference" mean? Does it correspond to the size of the candlestick on the chart?
I think a very nice idea would be to strengthen this indicator with some kind of settings fitting mechanism. What I mean by this is that algorithm runs and find the best possible settings based on the past results. This is probably not an easy task to implement, but this would increase value of this already great indicator by several times.
Thanks in advance for clarifications.
GiriDeepAm
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@Linktind, Bro can u let me know wat is the Indicator u have used above Volume per Point Indicator...