Volume Weighted Balance of Power

As always, this is not financial advice and use at your own risk. Trading is risky and can cost you significant sums of money if you are not careful. Make sure you always have a proper entry and exit plan that includes defining your risk before you enter a trade.

I have modified the Balance of Power indicator that measures the difference between the open and the close and the high and low of the current bar to incorporate volume information as well. Further, I have smoothed the indicator, which is usually very choppy and difficult to read with a 21 period Least Squares Moving Average to create a Volume-Weighted Balance of Power . Since we are all aware that volume precedes price I figured this could be a neat little trend-confirmation indicator.


1) The indicator is fairly straight forward, when it crosses below its zero line, this signals that there is more selling pressure in the current market vs. buying. Conversely, when it crosses above its zero line, this means more buyers have stepped up and are pushing prices higher.

2) It is sensitive enough to volume and price shifts that it produce divergences, which are often thought to be some of the most powerful trading signals in any market.

3) Use this tool to confirm breaks from trendlines or trading ranges to see if there is enough pressure and volume to support the move.

Enjoy and trade responsibly!
發布通知: Fixed code to take into account volume for the entire bar instead of just incorporating volume from the highs and the lows of the bar.

本著真正的TradingView精神,該腳本的作者將其開源發布,以便交易者可以理解和驗證它。為作者喝彩吧!您可以免費使用它,但在出版物中重複使用此代碼受網站規則的約束。 您可以收藏它以在圖表上使用。