[blackcat] L1 Markos Katsanos Volume Flow Indicator

19 apr 2022

Level 1

Background

Markos Katsanos’ volume flow indicator (VFI) calculation uses a default period of 130 days for daily charts. As a result, when applying the strategy, you will need to set the maximum number of bars the study will reference in the general tab of properties for all to at least 130. In order to compare the system objectively with the buy & hold results, he specified a trade size as a percent of equity.


Function

For more information see Markos Katsanos's articles in the June 2004 and July 2004 issues of Technical Analysis of Stocks & Commodities magazine. Period=days for VFI calculation. Default values are 130 for daily and 26 for weekly charts.Coef=coefficient for minimal price cut-of (use 0.2 for daily and 0.1 for intraday 5-15 min data) Vcoef=coefficient for volume cut-off (use 2.5 for daily and 3.5 for intraday charts)


Remarks

This is a Level 1 free and open source indicator.

Feedbacks are appreciated.

19 apr

Note di rilascio

OVERVIEW
The [blackcat] L1 Markos Katsanos Volume Flow Indicator (VFI) helps traders analyze market momentum by combining price action and volume data. This script calculates the VFI using customizable parameters and plots it on a separate pane, providing insights into buying and selling pressure. It also generates alerts and labels for potential trade signals, making it a valuable tool for identifying trends and reversals 📊💹.

FEATURES

Calculates the Markos Katsanos Volume Flow Indicator using user-defined parameters.
Plots the VFI on a separate pane with dynamic coloring:
Green bars indicate bullish momentum.
Red bars indicate bearish momentum.
Includes a zero line for reference and an exponential moving average (EMA) of the VFI.
Generates buy and sell signals based on VFI crossovers and crossunders 🚀📉
Adds visual labels for easy identification of trade signals:
"BUY" labeled in green during bullish crossovers.
"SELL" labeled in red during bearish crossunders.
Provides alert conditions for both buy and sell signals 🔔
HOW TO USE

Add the indicator to your TradingView chart by selecting it from the indicators list.
Observe the VFI plot in the separate pane for changes in momentum.
Monitor the buy ('BUY') and sell ('SELL') labels for potential trade opportunities.
Set up alerts based on the generated signals to receive notifications when conditions are met 📲.
Combine this indicator with other tools for confirmation before executing trades.
INPUT PARAMETERS

Periods: Define the lookback period for calculating averages (default is 130).
Coefficient: Adjust the sensitivity of the indicator (default is 0.2).
Volume Coefficient: Control the impact of volume on the calculation (default is 2.5).
Smoothing Periods: Specify the number of periods for smoothing the VFI (default is 3).
Moving Average Period: Determine the period for the EMA of the VFI (default is 30).
Typical Price: Select the price source for calculations (default is HL2).
LIMITATIONS

The indicator may generate false signals in low-volume or choppy markets 🌪️.
Users should always confirm signals with other forms of analysis.
Customization of parameters might be required for different market conditions.
NOTES

Ensure that you have sufficient historical data available for accurate calculations.
Test the indicator thoroughly on demo accounts before applying it to live trading 🔍.
Experiment with different parameter settings to optimize performance for specific assets or timeframes.