Advanced Short VolumeThis script is designed to show you the intensity of short selling in the market using a few different factors, to allow you to make more clearer decisions. Instead of boiling everything down into a simple number, the indicator will show a few factors at the same time, such as the daily short volume sale, short volume moving average, final supply volume and short volume ratio. Each one is explained below.
Daily short volume sale is simple, it's basically the amount of short sales, less transparent ones mean the short volume is higher than previous week same time
Red line is the average short volume, telling you the direction of the short volume which can be useful. You can change the moving average length of it in settings.
Green line is market volume sentiment. It's basically volume minus the short volume with a few other formulas involved to create a pure volume number. When below average short volume (the red line), it means that the market is bearish or there is fear. Keep in mind that this can look different in different timelines and sometimes market value sentiment line can be below short line but stock still could go up and this is by design (by design). The idea is to provide you a level of information beyond just numbers for better decisions. Keep in mind that this indicator is best used for 1 to 6 month charts and not very effective to use for day trading as it's hard to get that type of data live.
Small Red spikes are short volume ratio compared to daily volume. This tells if there is a big change in the short volume and might indicate a down turn.
I created this indicator to get an idea of the direction of the market beyond average volume and etc.. but I recommend using this with other indicators for maximum effectiveness and more importantly, this is best when used for swing trading.
Shortvolume
Daily Short Volume RatioThe short volume ratio is the number of shares sold short divided by the average daily volume and is used to indicate sentiment. In its most basic form, short volume ratio above 0.5 indicates more folks are shorting the stock while a short volume ratio below 0.5 indicates more folks are buying the stock. Short volume and total volume data is collected daily from FINRA for the NYSE and the NASDAQ exchange and represents lit markets. Daily short and total volume is calculated after the exchanges close so will lag by a day on the chart.
This indicator displays the short volume ratio for the last 1, 2, 3, 4, and 5 days and includes a smoothing function (def: off) to better visualize trends.
The indicator also includes the ability to view the short volume ratio for the last day for a reference ticker (def: SPY) to compare with total market sentiment.
Thanks to those before me for providing ideas and code.
Daily Short Volume (shortvolumes.com style)This is a script to utilize Quandl (Now Nasdaq Data Link) FINRA Short Volume datasets to see daily volume proportions by short / long activity.
For clarity, long volume does not indicate buying or selling, just that some volume for the day was either buying-to-open or selling-to-close.
Similar but opposite, short volume indicates that some volume for the day was either selling-to-open or buying-to-close.
The decimal value indicates the proportion of Long to Short volume. Example, 0.40 green / 0.60 red would indicate 40% long volume / 60% short volume for that day.
We can take that information as well as the overall outcome of the days session to get an idea for who was drove the market direction for the day.
The four clear outcomes that we can look for are:
If the volume was mostly long (a mostly green bar in the indicator) than an up day would indicate position holders added to long positions.
If the volume was mostly long (a mostly green bar in the indicator) than a down day would indicate position holders reduced from long positions.
If the volume was mostly short (a mostly red bar in the indicator) than a down day would indicate position holders sold short and added to short positions.
If the volume was mostly short (a mostly red bar in the indicator) than an up day would indicate position holders bought to cover long positions.
Those are the clearest possible cases but far more likely the volume will be muddled between short and long making interpreting the net outcome of the day far more difficult.
Unfortunately this data is only published at a daily resolution by FINRA and is usually available at the end of the trading day approximately 3-4 hours following market close.
Please reach out with any questions, suggestions, or recommendations on how to improve this indicator.
Best,
Zero
Short Volume StamperHello!
BE SURE TO RUN THE SCRIPT WITH BAR REPLAY TO SEE WHAT IT DOES! I hope you like it!
This script calculates the total short volume, total volume, and the short volume / total volume ratio since the 2-year high price. In addition, the approximate dollar value of all short volume since the 2-year high, and the approximate dollar value of all non-short sell volume since the 2-year high is calculated using VWAP. A red line (short interest ratio >= 20%) connects the 2-year high to current session’s high price; a green line (short interest ratio < 20%) connects the 2-year high to the current session’s high.
The script also “stamps” sessions in which a NEW 1-year high in SHORT volume is achieved, and when a PIVOT POINT high is achieved (highest high over 51 sessions). When a new high in short volume is achieved the script aggregates the total volume and short volume for the 5 sessions prior to the new high, the session of the new high, and the 4 sessions after the new high (10 sessions). Additional volume calculations are performed for the 10 session period!
When a pivot point high is achieved the script aggregates the total volume and short volume for the 3 sessions prior to the pivot high, the session of the pivot high, and the 2 sessions after the new high (6 sessions). Additional volume calculations are performed for the 6 session period!
Red labels, red boxes, and red lines indicate a short volume ratio greater than or equal to 20% over the corresponding period!
Green labels, green boxes, and green lines indicate a short volume ratio less than 20% over the corresponding period!
