OPEN-SOURCE SCRIPT

Volume Spread Analysis [Ahmed]

已更新
Greetings everyone,

I'm thrilled to present a Pine Script I've crafted for Volume Spread Analysis (VSA) Indicator. This tool is aimed at empowering you to make smarter trading choices by scrutinizing the volume spread across a specified interval.

The script delivers a comparative volume analysis, permitting you to fix the type and length of the moving average. It subsequently delineates the moving average (MA), MA augmented by 1 standard deviation (SD), and MA increased by 2 SD. You can fully personalize the color coding for these echelons.

Volume Spread Analysis is an analytical technique that scrutinizes candles and the volume per candle to predict price direction. It considers the volume per candle, the spread range, and the closing price.

To effectively leverage VSA, you need to adhere to a few steps:

1. Ensure you use candlesticks for trading. Other chart types like line, bar, and renko charts may not yield optimal results.
2. Confirm that your broker provides reliable volume data.
3. Be mindful of the chart's timeframe. Volume analysis may not be effective on very short timeframes such as a minute chart. I recommend using daily, weekly, or monthly charts.

Another tip is to examine the spread between the price bars and the volume bars to discern the trend.

The script not only makes it easier to integrate these principles into your trading but also brings precision and convenience to your analysis.

Please remember to adhere to Tradinview terms of service when using the script. Happy trading!
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Levels updated
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The volume levels have been revised as follows:

- Level 1: Very low volume, which is less than the Volume Moving Average minus 2 standard deviations.
- Level 2: Low volume, which is less than the Volume Moving Average but greater than the Volume Moving Average minus 2 standard deviations.
- Level 3: High volume, which is greater than the Volume Moving Average but less than the Volume Moving Average plus 2 standard deviations.
- Level 4: Very high volume, which exceeds the Volume Moving Average by more than 2 standard deviations.
Candlestick analysisVolumeWave Analysis

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