Zanger Volume Ratio (ZVR)

2月6日

Zanger Volume Ratio (ZVR)

Credits:
Most of the underlying code and logic in this script have been adapted from the work originally published by The_Peaceful_Lizard


Overview

The Zanger Volume Ratio (ZVR) is a powerful indicator designed to reveal market dynamics by comparing current cumulative volume to an average determined over a historical look-back period. It uses the concept of relative volume to not only highlight unusual volume spikes, but also uses color to illustrate how today's trading compares to typical levels. This unique method of volume analysis was popularized by Dan Zanger - a trader known for turning $10,775 into $18,000,000 in less than two years - by identifying key shifts in market interest and volume behavior.

Key Features

Volume Pacing Analysis:

• The script calculates a volume delta by comparing the cumulative volume at any given moment to an average derived over a user-defined lookback period (Default 20-day). The resulting percentage difference offers a clear visualization and insight into unusual volume activity.
  

Dynamic Visual Representation:

• Choose between either “Columns” or “Area” plot styles to display the percent difference. Additionally, you have the option to switch between a standard plot or a background color display, with customizable transparency, ensuring the indicator fits seamlessly with your chart’s aesthetics.
  

Dashboard Integration:

• A simple dashboard table is displayed on the chart, showcasing the current ZVR value in real-time. With user-configurable position, text size, alignment, and color options, this feature ensures that the key metric is always visible and easy to interpret.
  

Why Use the Zanger Volume Ratio?

The ZVR is more than just a volume indicator. It acts as a window into market sentiment by highlighting days when trading interest intensifies. Many traders believe that an unusually high volume ratio may confirm trend strength or signal a reversal, making the indicator a valuable tool when used in conjunction with other technical analysis methods.

Whether you’re monitoring stocks, commodities, or forex markets, the Zanger Volume Ratio offers an accessible yet sophisticated method to decode volume dynamics. Its practical design and real-time visual feedback provide traders of all experience levels with critical data to spot high-potential setups.


Chart Description

First Pane: normal Volume Indicator on the foreground, ZVR as Background colors
Second Pane: ZVR Indicator with Column Style (default)

First panel: normal volume indicator in foreground, ZVR as background colors
Second panel: ZVR indicator with column style (default)

Note: This indicator is intended for use on intraday charts only!

2月6日

發行說明

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