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Volume Shaded Candles

已更新
Description:
The Volume Shaded Candles indicator (VSC) is a technical analysis tool designed to represent price candles on a chart with transparency based on the volume traded during each candle. This overlay indicator enhances visual analysis by providing a visual representation of volume intensity.

How it Works:
The VSC indicator calculates the volume-to-transparency ratio by dividing the current volume by the highest volume within the last 10 periods. The ratio is then used to determine the shading intensity of the price candles. Higher volume relative to the recent highest volume results in lower transparency, while lower volume results in higher transparency.

Usage:
To effectively utilize the Volume Shaded Candles indicator, follow these steps:

1. Apply the Volume Shaded Candles indicator to your chart by adding it from the available indicators.
2. Configure the indicator's inputs:
- Specify the color for bullish candles using the "Bullish Color" input.
- Specify the color for bearish candles using the "Bearish Color" input.
3. Observe the shaded candles on the chart:
- Bullish candles are colored with the specified bullish color and shaded according to the volume intensity.
- Bearish candles are colored with the specified bearish color and shaded according to the volume intensity.
4. Interpret the shaded candles:
- Darker shading indicates higher volume during the corresponding candle.
- Lighter shading indicates lower volume during the corresponding candle.
5. Combine the analysis of shaded candles with other technical analysis tools, such as trend lines, support and resistance levels, or candlestick patterns, to identify potential trade setups.
6. Implement appropriate risk management strategies, including setting stop-loss orders and position sizing, to manage your trades effectively and protect your capital.
發布通知
The ratio applied to the transparency calculation has been updated to retrieve more data giving a smother gradient effect between bars.
發布通知
Calculation to shading increments updated to provide more detail and variance in shading.
發布通知
The Volume indicator has been added to the Volume Shaded Candles chart image to allow users a visual representation of how the indicator functions without it needing to be applied.
candlesticksignalsVolume IndicatorvolumeanalysisvolumeindicatorvolumepriceanalysisVolume

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