Volume Impulse & Candlestick Patterns - FontiramisuIndicator showing volume impulse & engulfing candlestick pattern.
You can set up multiple parameter for both events.
Volume Impulse :
Volume Period : Lenght of the average volume calculated.
Volume Multiplier : Factor to compare actual volume with average volume.
Engulfing Pattern :
VS avg body : Let you chose to compare body candle to average body of the last few candles (define with parameter : lenghtSizeAvgBody ), otherwise it will be compared to the last body candle.
Engulfing Multiplier : Factor to compare and validate the pattern.
Cerca negli script per "candle"
Giant Candles DetectorThis script identifies abnormally large candles — also known as "giant candles" — based on a customizable size threshold relative to the average candle size over a user-defined period.
Key Features:
Automatically detects candles that are significantly larger than average.
Differentiates between bullish (green) and bearish (red) candles.
Option to visually highlight candles with background color.
Built-in alert to notify you immediately when a giant candle appears.
Ideal for traders looking to spot volatility spikes, key breakouts, or significant price movements with minimal effort.
POC-Candle-EMA-ATR-LongShadow-50percCandleThis is a script for those who trade based on volume and smart money strategies.
Some of the features of this script:
- Display "Time Price Opportunity Chart". These points help traders to identify price opportunities over time and have a better analysis of the market.
- Mark candles that have traded more volume than previous candles.
- Mark candles whose body is at least and not more than 50% of the total candle size, these candles can be found more easily in smart money strategies.
- Mark spike candles to find FVG faster
- Mark candles that have a shadow of at least more than 380 points and can be good reversal points.
- EMA indicator to check the market trend
- DonchianChannel indicator to check the price trend on the chart
Regards
Engulfing Candle PatternIndicator Overview
This indicator identifies Bullish and Bearish Engulfing candlestick patterns on a price chart. These patterns are reversal signals:
Bullish Engulfing: Occurs during a downtrend, where a bullish candle fully engulfs the body of the previous bearish candle.
Bearish Engulfing: Occurs during an uptrend, where a bearish candle fully engulfs the body of the previous bullish candle.
Key Features
1. Pattern Detection:
Detects Bullish Engulfing and Bearish Engulfing patterns based on candle body comparisons.
Uses the current and previous candle's open/close prices to determine engulfing conditions.
2. Visualization:
Plots labels on the chart:
" Bullish Engulfing " below the candle for bullish patterns.
" Bearish Engulfing " above the candle for bearish patterns.
3. Alerts:
Triggers alerts when either pattern is detected, allowing traders to take action.
How It Works
Bullish Engulfing Condition:
Current candle is bullish (close > open).
Previous candle is bearish (close < open).
Current candle's body fully engulfs the previous candle's body.
Bearish Engulfing Condition:
- Current candle is bearish (close < open).
- Previous candle is bullish (close > open).
- Current candle's body fully engulfs the previous candle's body.
Usage
- Apply the script to any chart in TradingView.
- Look for " Bullish Engulfing " or " Bearish Engulfing " labels on the chart.
- Set up alerts to get notified when these patterns form.
This indicator is a simple yet effective tool for identifying potential trend reversals using engulfing candlestick patterns.
WPR Volume Candle [Atareum]AWPRVC (Atareum WPR Volume Candles) is clearly an awesome indicator produced by AtareumFX that is based on William’s Percent Range concepts by combination with volume. This is a new approach of volume candles that is combined with R% concepts and creates such a powerful tool to trace the market and assists traders to make better decisions surly and so much accurate. You can find this new indicator more useful because it has all benefits and advantages of William’s R% and cover its disadvantages. Also it is more powerful because of using volume in its calculations and generate a new candles which is more reliable and trustworthy.
Concept:
Using William’s Percent leading periods and calculations on redesigning new candles in combination with volume, that makes unique reform candles, but these new candles with their new cloud system clearly response to any reasonable price movement with so much information.
As you know if use R% there are some misleading fake signals generate by oscillator, also it could not show any sign of price moving trend which is almost confusing for beginners or even a pro trader! And finally this oscillator is so sensitive to price change that is so creepy to use for most of traders.
This new AWPRVC solve the problem and make all of them handy and useful for you.
The cloud system which is designed in AWPRVC shows the price trend moving from Bearish Zone (-100 to -50 percent) to Bullish Zone (-50 to 0 percent). You can trust the lead moving forward of the clouds in two separate Top and Bottom (Bull and Bear) lines which solely determine the trend and power of price moving. When clouds are close to each other means we continue the trend and when they get far away from each other means we will face powerful trend in near future. If they are in Bearish Zone we continue the selling pressure and vice versa. Following picture shows good sample of Long and Short positions in compare with so many fake signals generated on original R%.
Besides the cloud system of AWPRVC which is clearly show the price trend and it is completely enough for being sure about price moving trend, you can use moving average which is designated in it to confirm the price trend, also.
Also you can see this new AWPRVC candle by using volume within its conformation, make reasonable price candles which is no so sensitive and so creepy and make your decisions come true in peace and clear sense of market moves. You can see following picture which is showing although the real price candles are so unclear and nonsense of making decision but the AWPRVC candles lead you to make true and trustable position.
As you see this new combination of Williams R% oscillator with volume and also generating a perfect new cloud system will clearly help traders even pro to trust the signals and understand whole market movement better and all of original problems of R% solved and even make a most powerful, trustworthy and useful new indicator.
Parameters:
Section 1 : Candle colour setting for flourishing just as you desire !
Section 2 : Defining Periods of R% and source of candle data in combination with determining the smoothing type of moving averages and signal period.
Section 3 : Select using Standard candles alongside with redesigned cloud calculation type and three additional moving averages which can plot on each newly generated candles and standard candles on a chart with the type mode defined in the previous section.
Note: if you want to omit any or all of these moving averages, you can use 0 in period, instead of selecting "None" in the plot moving option!
Usage :
Overall:
Regardless of the additional moving averages which will lead to so many situations of market according to their types and designs, that is four different period for new redesign AWPRVC and three period for standard chart. You can easily select periods and type for these moving averages. Also, do not forget that signal moving averages is shown only on AWPRVC chart and have two different colour for upward and downward trends. Other moving averages are plot by just one single colour.
Cloud levels are so important because AWPRVC candles show respect to them and when they break the clouds upward or downward it is surly beginning of a trend. Do not forget we have 5 levels for tracing new AWPRVC candles move as follows : Ready for Short \ Long, Surly Short \ Long and Turn Trend which is in middle range of movement percent. Each level clearly shows what it means by its name.
Support and Resistance:
Any consolidation of AWPRVC candles in Ready for Short or Long Zones means the support or resistance level due to its nature, but important thing is how long the candles lasts in there or how many times repeated in the same level in AWPRVC chart zone in future.
For plotting the support or resistance you should trace range of AWPRVC candles consolidated and plot zone in standard chart candles just like following picture.
Divergence:
When standard price candles move downward but we see upward trend in clouds of AWPRVC candles that means we should face Bullish Trend because of the divergence and vice versa. You can see perfect example in following picture.
Signal:
Alert of Long :
Bullish candle cross both cloud down and up level simultaneously.
Confirmed Long :
AWPRVC candles cross up turn trend level and pullback to cloud up level.
Take profit of Long:
Any cross down of the AWPRVC candles from surly short level of chart.
Alert of Short :
Bearish candle cross both cloud up and down level simultaneously.
Confirmed Short :
AWPRVC candles cross down turn trend level and pullback to cloud down level.
Take profit of Short:
Any cross up of the AWPRVC candles from surly long level of chart.
Notes:
Use moving averages cross of standard chart candles as lead to be in positions more as they are good representative of trend.
As long as AWPRVC candles or Cloud levels are in Bullish Zone, you can stay in Long positions.
Cloud level thickness means the power of trend and can be use as confirmation of powerful trend, so when cloud levels tight or going to cross each other it means the trend is going to be reversed.
It is the result of many years of experience in markets and there are so many details about this AWPRVC chart which I am in the experiment phase to publish in the future, so please help me with your ideas and do not hesitate to comment and inform me any suggestions or criticism.
Volume candle by MoondIndicator Description: Equal Volume Candle Chart
This indicator creates a real-time candlestick chart where each candle forms upon the completion of a specific volume threshold, rather than within fixed time intervals. The candles update dynamically based on the total volume traded, providing a unique perspective that incorporates market activity directly into price movements.
Key Features:
Dynamic Candles Based on Volume: Candles form when a defined lot size of volume is reached, making each candle represent consistent trading activity rather than a fixed time period.
Customizable Volume Lot Size: Users can easily adjust the volume threshold to suit different trading styles or asset classes.
Real-Time Market Reflection: The chart responds to changes in market volume, offering a clearer view of market intensity and momentum.
Concept Behind the Indicator: Traditional candlestick charts operate on time intervals, which can ignore the influence of volume in price changes. By basing the candle formation on equal volumes, this indicator integrates both price and traded volume into the visual representation, helping traders capture key shifts in market sentiment and activity that might be missed on time-based charts
Atareum Volume Ichimuku CandleAVIC (Atareum Volume Ichimoku Candles) is clearly an awesome indicator that is based on Ichimoku concepts by combination with volume. This is a new approach of volume candles that is combined with Ichimoku concepts and creates such a powerful tool to trace the market and assists traders to make better decisions, truly.
Concept:
Using Ichimoku leading periods and calculations on redesigning new candles in combination with volume, that makes unique reform candles on Tenkansen movement, but these new candles clearly omit noises in combination with volume, and then the new redesigned system of cloud calculations builds, new series of data for Senko Span A and Senko Span B which is so odd in first view, because they will barely ever cross each other, but they show very more informative and useful.
Parameters:
Section 1 : Candle colour setting for flourishing just as you desire !
Section 2 : Defining Periods of standard Ichimoku and source of candle data in combination with determining the smoothing type of moving averages and signal period.
Section 3 : Select using Heikin Ashi based candles alongside with redesigned cloud calculation type and three additional moving averages which can plot on each newly generated candles and standard candles on a chart with the type mode defined in the previous section.
Note: if you want to omit any or all of these moving averages, you can use 0 in period, instead of selecting "None" in the plot moving option!
Usage :
Overall:
Regardless of the additional moving averages which will lead to so many situations of market according to their types and designs, that is four different period for new redesign AVIC and three period for standard chart. You can easily select periods and type for these moving averages. Also, do not forget that signal moving averages is shown only on AVIC chart and have two different colour for upward and downward trends. Other moving averages are plot by just one single colour.
Cloud levels are so important because AVIC candles show respect to them and when they break the clouds upward or downward it's surly beginning of a trend that is may last long. Also when cloud levels flatten, it is determining a support or resistance according to up cloud or down cloud nature and as long as they will continue or repeated periodically on same level of AVIC chart, it will implement their weakness or strength.
Support and Resistance:
Any flattens of cloud up or down level means the support or resistance level due to its nature, but important thing is how long the cloud lasts flatten or how many times repeated in the same level in AVIC chart.
For plotting the support or resistance you should trace first candle of start of flattens in standard chart just like following picture.
Divergence:
All Higher high or Lower low of standard chart has its reflect in AVIC chart but there is secret in it, It is named divergence. When standard chart price candles generating lower low but the AVIC chart candles do not cross the bottom, it means we will spike high as soon as AVIC candle chart complete its divergence. You can see perfect example in following picture.
Cloud level Ends
When cloud down level become flattens and cloud up level start a bull run it means we will face a great up trend movement but as soon as cloud down level starts to move up it mean we are going to finish the bull run and maybe it goes with consolidation phase or reversal phase. This reaction is exactly happen in vice versa for bear run trend. You can see both examples in following pictures.
Note: if we face end of bull run and cloud down level make a U turn shape upside down it means we will have reversal phase even not too long but it is sharp and fast reversal. If cloud down level just turn right slightly, it means we should have consolidation phase, mostly or we can continue the last trend slightly. All these situations can happen in vice versa bear run. You can see example in following picture.
Signals:
Long but risky:
You can go long when AVIC candles are green and be in position as long as they are not change in colour.
Long and safe :
You can go long when AVIC candles cross up cloud down level and be in position as long as AVIC candles cross down cloud up level.
Long and sure:
You can go long when AVIC candles cross up cloud up level and be in position as long as AVIC candles cross down cloud down level.
Short but risky:
You can go short when AVIC candles are red and be in position as long as they are not change in colour.
Short and safe :
You can go short when AVIC candles cross down cloud up level and be in position as long as AVIC candles cross up cloud down level.
Short and sure:
You can go short when AVIC candles cross down cloud down level and be in position as long as AVIC candles cross up cloud up level.
Notice : Candles with large body are so strong but if a body candle is weak or flatten it may a signal of changing colour and direction, especially when using Heikin Ashi type.
It is the result of many years of experience in markets and there are so many details about this AVIC chart which I am in the experiment phase to publish in the future, so please help me with your ideas and do not hesitate to comment and inform me any suggestions or criticism.
Dynamic Candle Balance Indicator (Binary)
Dynamic Candle Balance Indicator
The Dynamic Candle Balance Indicator is a powerful tool designed to identify imbalances in candle colors on a chart, which can indicate potential reversals or changes in market direction. This indicator is specifically developed for traders operating on short timeframes, such as 1-minute candles, and is particularly useful for identifying opportunities in binary options.
How to Use:
Set Parameters
Initial Position: Specify the number of initial candles to be considered for calculation.
Count: Determine the total number of candles to be analyzed, including the initial position.
Interpret Results:
Green: Indicates the number of bullish candles (where the closing price is higher than the opening price).
Red: Indicates the number of bearish candles (where the closing price is lower than the opening price).
Absent: Indicates the number of candles that were not considered due to the selected interval.
Performance Analysis:
The indicator calculates the percentage of green and red candles relative to the total number of analyzed candles, providing insights into market balance or imbalance.
Identify Trading Opportunities:
Significant imbalances between candle colors can indicate potential reversals or changes in market direction.
Traders can use this information to make informed decisions about their trading strategies, such as identifying entry or exit points.
Example:
In the last 40 candles, there were 13 green candles and 27 red candles, indicating a higher likelihood of the next candle being green.
Usage Tips:
The indicator is most effective when used on a 1-minute timeframe for binary options trading, especially during periods of high imbalance.
Adjust the parameters according to your trading strategy and the timeframe being analyzed.
Combine the Dynamic Candle Balance Indicator with other technical analysis tools to confirm trading signals.
Legal Disclaimer:
This indicator is provided for educational and informational purposes only. It represents a theory and should be used as part of a comprehensive trading strategy. Past performance is not indicative of future results. Traders should always conduct their own analysis before making trading decisions.
Try out the Dynamic Candle Balance Indicator and leverage its functionalities to identify trading opportunities on short-term charts, especially in 1-minute timeframes for binary options trading during periods of high imbalance. Remember to test the indicator on a practice account before using it on a real account.
RSI Candle Advanced V2RSI Advanced
As the period value is longer than 14, the RSI value sticks to the value of 50 and becomes useless.
Also, when the period value is less than 14, it moves excessively, so it is difficult for us to see the movement of the RSI .
So, using the period value and the RSI value as variables, I tried to make it easier to identify the RSI value through a new function expression.
This is how RSI Advanced was developed.
Period below 14 reduce the volatility of RSI , and period above 14 increase the volatility of RSI, allowing overbought and oversold zones to work properly and give you a better view of the trend.
By applying the custom algorithm so that the 'RSI Advanced' with period on a 5-minute timeframe has the same value as the 'original RSI' with period on a 60-minute timeframe.
As another example, an 'RSI Advanced' with a period in a 60-minute time frame has the same value as an 'original RSI' with a period in a 240-minute time frame.
Compare the difference in the RSI with a period value of 200 in the snapshot.
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RSI Candlestick
RSI derives its value using only the closing price as a variable.
I solved the RSI equation in reverse and tried to include the high and low prices of candlesticks in the equation.
As a result, 'if the high or low was the closing price, the value of RSI would be like this' was implemented.
Just like when a candle comes down after setting a high price, an upper tail is formed when RSI Candle goes down after setting a high price!!
In divergence, we had to look only at the relationship between closing prices, but if we use RSI candles, we can find divergences in highs and highs, and lows and lows.
Existing indicators could not express "gap", but Version 2 made it possible to express "gap"!!!!!!
RSI can be displayed as candlesticks, bars and lines
Then enjoy my RSI!
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RSI Advanced
기간값이 14보다 길어질수록 RSI값은 50값에 달라붙게 되어서 쓸모가 없어집니다.
또 기간값이 14보다 줄어들수록 과도하게 움직여서 우리는 RSI의 움직임을 보기가 힘듭니다.
그래서 기간 값과 RSI 값을 변수로 사용하여 새로운 함수 식을 통해 RSI 값을 식별하기 편하도록 해보았습니다.
이렇게 RSI Advanced가 개발되었습니다.
기간값이 14보다 낮으면 rsi의 변동폭이 줄어들고, 기간값이 14보다 크면 변동폭이 넓어져 과매수 및 과매도 영역이 제대로 작동하여 추세를 더 잘 볼 수 있습니다.
또한 저는 5분 타임프레임의 기간값이 168(=14*12)인 RSI가 주기 값이 14인 60분 타임프레임의 RSI와 동일한 값을 갖도록 적절한 함수 표현식을 적용하여 RSI를 변경했습니다.
다른 예로, 15분 시간 프레임에서 기간값이 56(=14*4)인 RSI는 60분 시간 프레임의 기간값이 14인 RSI와 동일한 값을 갖습니다.
기간값이 200인 RSI의 차이를 스냅샷에서 비교해보십시오.
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RSI Candlestick
RSI는 종가만을 변수로 사용하여 값을 도출해냅니다.
저는 RSI 식을 역으로 풀어내어서 캔들스틱의 고가와 저가, 시가를 식에 포함시켜보았습니다.
결과적으로, '만약 고가나 저가가 종가였다면 RSI의 값이 이럴것이다'를 구현해내었습니다.
캔들이 고가를 찍고 내려오면 윗꼬리가 생기듯 RSI Candle에서도 고가를 찍고 내려오면 윗꼬리가 생기는겁니다!!
다이버전스 또한 원래는 종가끼리의 관계만 봐야했지만 RSI 캔들을 이용한다면 고가와 고가, 저가와 저가에서도 다이버전스를 발견할 수 있습니다.
기존의 지표는 "갭"을 표현하지 못했지만 Version 2 에서는 "갭"을 표현할 수 있게 만들었습니다!!!!!!
그럼 잘 사용해주십시오!!!
Reductionism candle chartHere I am introducing "Reductionism candle chart", in most of the case takeing away those distracting "candles", and also remaining the most of data (4 dots) for each index on the chart.
And only keeping high valuation change "price gap" filled up with candles.
For someone who don't relies on candles to their decision. Usually candles are redundant to them.
For someone who uses candle, definitely not all candles are carrying the same amount of information.
Most often less is more, in terms of representing the thing that is not related to your model.
This script the color and the volatility boundary are changeable, so no additional coding is required to use it.
Enjoy :)
Value CandlesCreating candles from value stats as an experiment. These candles will almost always follow price candles except when there is a deviation.
Strategies based on buying the dips can be applied better on value candles. This is because, drop in value candles imply real bargain whereas drop in price candles can also be due to some other factors.
We can clearly see in the Amazon chart that value candles have come down even though price candles are at same level from September. This signifies AMZN stock is having more value now (due to increased sales from September to now) than back in September even though the price is same.
Another simple thing we can do is move Value candles into same overlay as that of price candles. This will look something like this:
Key thing to remember : Lower the value candle higher the relative value of stock.
Kawabunga Swing Failure Points Candles (SFP) by RRBKawabunga Swing Failure Points Candles (SFP) by RagingRocketBull 2019
Version 1.0
This indicator shows Swing Failure Points (SFP) and Swing Confirmation Points (SCP) as candles on a chart.
SFP/SCP candles are used by traders as signals for trend confirmation/possible reversal.
The signal is stronger on a higher volume/larger candle size.
A Swing Failure Point (SFP) candle is used to spot a reversal:
- up trend SFP is a failure to close above prev high after making a new higher high => implies reversal down
- down trend SFP is a failure to close below prev low after making a new lower low => implies reversal up
A Swing Confirmation Point (SCP) candle is just the opposite and is used to confirm the current trend:
- up trend SCP is a successful close above prev high after making a new higher high => confirms the trend and implies continuation up
- down trend SCP is a successful close below prev low after making a new lower low => confirms the trend and implies continuation down
Features:
- uses fractal pivots with optional filter
- show/hide SFP/SCP candles, pivots, zigzag, last min/max pivot bands
- dim lag zones/hide false signals introduced by lagging fractals or
- use unconfirmed pivots to eliminate fractal lag/false signals. 2 modes: fractals 1,1 and highest/lowest
- filter only SFP/SCP candles confirmed with volume/candle size
- SFP/SCP candles color highlighting, dim non-important bars
Usage:
- adjust fractal settings to get pivots that best match your data (lower values => more frequent pivots. 0,0 - each candle is a pivot)
- use one of the unconfirmed pivot modes to eliminate false signals or just ignore all signals in the gray lag zones
- optionally filter only SFP/SCP candles with large volume/candle size (volume % change relative to prev bar, abs candle body size value)
- up/down trend SCP (lime/fuchsia) => continuation up/down; up/down trend SFP (orange/aqua) => possible reversal down/up. lime/aqua => up; fuchsia/orange => down.
- when in doubt use show/hide pivots/unconfirmed pivots, min/max pivot bands to see which prev pivot and min/max value were used in comparisons to generate a signal on the following candle.
- disable offset to check on which bar the signal was generated
Notes:
Fractal Pivots:
- SFP/SCP candles depend on fractal pivots, you will get different signals with different pivot settings. Usually 4,4 or 2,2 settings are used to produce fractal pivots, but you can try custom values that fit your data best.
- fractal pivots are a mixed series of highs and lows in no particular order. Pivots must be filtered to produce a proper zigzag where ideally a high is followed by a low and another high in orderly fashion.
Fractal Lag/False Signals:
- only past fractal pivots can be processed on the current bar introducing a lag, therefore, pivots and min/max pivot bands are shown with offset=-rightBars to match their target bars. For unconfirmed pivots an offset=-1 is used with a lag of just 1 bar.
- new pivot is not a confirmed fractal and "does not exist yet" while the distance between it and the current bar is < rightBars => prev old fractal pivot in the same dir is used for comparisons => gives a false signal for that dir
- to show false signals enable lag zones. SFP/SCP candles in lag zones are false. New pivots will be eventually confirmed, but meanwhile you get a false signal because prev pivot in the same dir was used instead.
- to solve this problem you can either temporary hide false signals or completely eliminate them by using unconfirmed pivots of a smaller degree/lag.
- hiding false signals only works for history and should be used only temporary (left disabled). In realtime/replay mode it disables all signals altogether due to TradingView's bug (barcolor doesn't support negative offsets)
Unconfirmed Pivots:
- you have 2 methods to check for unconfirmed pivots: highest/lowest(rightBars) or fractals(1,1) with a min possible step. The first is essentially fractals(0,0) where each candle is a pivot. Both produce more frequent pivots (weaker signals).
- an unconfirmed pivot is used in comparisons to generate a valid signal only when it is a higher high (> max high) or a lower low (< min low) in the dir of a trend. Confirmed pivots of a higher degree are not affected. Zigzag is not affected.
- you can also manually disable the offset to check on which bar the pivot was confirmed. If the pivot just before an SCP/SFP suddenly jumps ahead of it - prev pivot was used, generating a false signal.
- last max high/min low bands can be used to check which value was used in candle comparison to generate a signal: min(pivot min_low, upivot min_low) and max(pivot max_high, upivot max_high) are used
- in the unconfirmed pivots mode the max high/min low pivot bands partially break because you can't have a variable offset to match the random pos of an unconfirmed pivot (anywhere in 0..rightBars from the current bar) to its target bar.
- in the unconfirmed pivots mode h (green) and l (red) pivots become H and L, and h (lime) and l (fuchsia) are used to show unconfirmed pivots of a smaller degree. Some of them will be confirmed later as H and L pivots of a higher degree.
Pivot Filter:
- pivot filter is used to produce a better looking zigzag. Essentially it keeps only higher highs/lower lows in the trend direction until it changes, skipping:
- after a new high: all subsequent lower highs until a new low
- after a new low: all subsequent higher lows until a new high
- you can't filter out all prev highs/lows to keep just the last min/max pivots of the current swing because they were already confirmed as pivots and you can't delete/change history
- alternatively you could just pick the first high following a low and the first low following a high in a sequence and ignore the rest of the pivots in the same dir, producing a crude looking zigzag where obvious max high/min lows are ignored.
- pivot filter affects SCP/SFP signals because it skips some pivots
- pivot filter is not applied to/not affected by the unconfirmed pivots
- zigzag is affected by pivot filter, but not by the unconfirmed pivots. You can't have both high/low on the same bar in a zigzag. High has priority over Low.
- keep same bar pivots option lets you choose which pivots to keep when there are both high/low pivots on the same bar (both kept by default)
SCP/SFP Filters:
- you can confirm/filter only SCP/SFP signals with volume % change/candle size larger than delta. Higher volume/larger candle means stronger signal.
- technically SCP/SFP is always the first matching candle, but it can be invalidated by the following signal in the opposite dir which in turn can be negated by the next signal.
- show first matching SCP/SFP = true - shows only the first signal candle (and any invalidations that follow) and hides further duplicate signals in the same dir, does not highlight the trend.
- show first matching SCP/SFP = false - produces a sequence of candles with duplicate signals, highlights the whole trend until its dir changes (new pivot).
Good Luck! Feel free to learn from/reuse the code to build your own indicators!
Bearish CandlesPlots 6 different kinds of bearish candlesticks. I started with HPotter's previous work, added 4 other types of bearish Candlesticks and bunched them in one indicator.
[NM] Reversal Candles v01Reversal candles are a very easy way to identify a turn in trend, this indicator has some specific additional conditions for the reversal candle.
BUY Signal reversal candle
Low of current candle exceeds low of previous candle
Low of current candle is lowest for last 7 candles
High of current candle exceeds high of previous candle
Close of current candle is in the upper 50% of the range of this candle
SELL Signal reversal candle
High of current candle exceeds high of previous candle
High of current candle is Highest for last 7 candles
Low of current candle exceeds low of previous candle
Close of current candle is in the lower 50% of the range of this candle
How do I trade it ? (example buy signal)
Wait for close of the candle and the BUY signal
Put a buy stop entry 5 pips above the high of the candle
Put a stop loss 5 pips below the low of the candle
Calculate difference between entry and stop loss and set your target that number of pips above the entry for a 1:1 RR trade*
Wait for your your target or stop loss to be triggered
* Alternatively, you can take 50% of the profit at the 1st (1:1 RR) profit target, move your stop to break even and let the rest of the position run for a higher potential profit.
Further advice on use
Personally I always look for some additional confirmation like a support or resistance level, a bounce of the EMA or a fibonacci level, but please feel free to add additional filters to make the strategy even more effective. I would strongly advise to backtest your strategy first so you can fine tune it and have confidence in trading it. Forward testing on a demo account before going live, although it takes longer, can be a worthy alternative. Works better on higher time frames.
How do you use it ?
Please leave a note in the comment section below to let me know if you use the indicator and how. There's definitely not just one way to use the indicator so I'm curious about your feedback.
To apply the script to your chart, just add it to your favourites so you can easily find it in the Indicators list.
Kindly leave me a thumbs up if you like this indicator or support my work, and do not hesitate to visit my other indicators. Thanks for your visit
GRaB Candles by mattlacoco with MMM by Harold_NL V1.1Update v1.1:
GRaB colors now green, red, gray
Added Murrey Range lines.
Cleaned up the code.
GRaB candles and a murrey math "midline" in one script.
Some traders using methods of Rob Booker (40% club, trifecta5) like to use both GRaB candles and Murrey Math to combine, or to compare entry and exit moments.
Color of candles are as GRaB candles.
Midline use: Crossing the midline is a change of color in murrey. Candles closing above the midline would be green and below would be red as murrey candles.
Credits:
Original script of Raghee Horner's GRaB Candles by Matt Lacoco (BUY BLUE SELL RED).
Murrey Math Midline added by Harold van Berk (most code copied from "UCS_Murrey's Math Oscillator_V2" by ucsgears)
Candle colors defined by GRaB
Green bulish, Red bearish, Gray neutral
Dark for close lower than open
Light for close higher than open
Candles that close above the Murrey Math Middle line would normally be (murrey) green. Below would be (murrey) red.
Murrey lines can be switched off in "format" of the indicator.
IU Engulfing Candlestick PatternDISCRIPTION
📈 The IU Engulfing Candlestick Pattern indicator spotlights both bullish and bearish engulfing formations in real‑time. It shades each pattern with a transparent box and drops a concise label so you can catch potential reversals at a glance—no clutter, no noise, just the candles that matter.
USER INPUTS :
1. Pattern Recognition Based on = “Both” | “Wicks” | “Body” ( Default Both )
• Both → only highlights candles that satisfy **both** wick‑and‑body engulfing rules
• Wicks → checks full candle range (high‑to‑low)
• Body → checks only the real bodies (open‑to‑close)
2. Show Labels ( Default true )
If ticked then it will show the text as "Bullish Engulfing" or "Bearish Engulfing".
3. Show The Box ( Default true)
if ticked then it will show the green or red boxes.
INDICATOR LOGIC:
🔹 Bullish Engulfing (green box)
– Current bar closes higher than it opens and fully “wraps” the prior bar per your chosen rule.
🔹 Bearish Engulfing (red box)
– Current bar closes lower than it opens and fully “wraps” the prior bar per your chosen rule.
🔸 When a pattern confirms:
1. The script records the local high/low range.
2. Draws a semi‑transparent box spanning the engulfing pair.
3. Prints a compact up/down label exactly at the reaction point.
4. Fires a once‑per‑bar alert (“Bullish Engulfing” / “Bearish Engulfing”) you can route to webhooks or notifications.
WHY IT IS UNIQUE:
✨ Combines classic body‑only engulfing with an optional wick filter, letting traders demand stricter confirmation when markets are noisy.
✨ Box overlays visually segment the engulfed range—clearer than single‑bar markers.
✨ Lightweight: one input, zero repaint, and capped at 500 boxes to keep charts responsive.
✨ Ready‑to‑use alerts—no extra code needed for automation.
HOW USER CAN BENIFIT FROM IT :
- Spot early reversal zones or continuation thrusts without scanning candle by candle.
- Pair the alerts with trading bots, TradingView strategy testers, or mobile push notifications.
- Adapt the strictness (Body vs. Wicks vs. Both) to suit different assets, timeframes, or volatility regimes.
- Use the colored range boxes as dynamic support/resistance references for entries, targets, and stop‑loss placement.
📌 Tip: Test on multiple instruments and timeframes to find the sweet spot that matches your risk profile. This script is for educational purposes—always combine with sound risk management and confirm signals with broader market context.
Disclaimer :
This Video is not financial advice, it's for educational purposes only highlighting the power of coding( pine script) in TradingView, I am not a SEBI-registered advisor. Trading and investing involve risk, and you should consult with a qualified financial advisor before making any trading decisions. I do not guarantee profits or take responsibility for any losses you may incur.
Candle Trend ConfirmationCandle Trend Confirmation Indicator
The "Candle Trend Confirmation" indicator This indicator leverages an Exponential Moving Average (EMA) to visually confirm market trends through dynamic coloring of the EMA line, a shading effect, and candle color changes. It aims to help traders quickly identify strong trends and consolidation phases, enhancing decision-making in various market conditions.
Key Features
Customizable EMA Period:
Traders can adjust the EMA period via an input parameter, with a default setting of 20 periods. This flexibility allows the indicator to adapt to different timeframes and trading strategies.
Pip Threshold for Trend Strength:
A user-defined pip threshold (default set to 0.02) determines the distance from the EMA required to classify a trend as "strong." This parameter can be fine-tuned to suit specific instruments, such as forex pairs, cryptocurrencies, or stocks, where pip values may differ.
Trend Detection Logic:
Strong Uptrend: The closing price must be above the EMA by at least the pip threshold (e.g., 2 pips) and show consistent upward movement over the last three bars (current close > previous close > close two bars ago).
Strong Downtrend: The closing price must be below the EMA by at least the pip threshold and exhibit consistent downward movement over the last three bars.
Consolidation: Any price action that doesn’t meet the strong trend criteria is classified as a consolidation phase.
Dynamic Coloring:
EMA Line: Displayed using the line.new function, the EMA changes color based on trend conditions: green for a strong uptrend, red for a strong downtrend, and purple for consolidation. The line is drawn only for the most recent bar to maintain chart clarity.
Candles: Candlestick colors mirror the trend state—green for strong uptrends, red for strong downtrends, and purple for consolidation—using the barcolor function, providing an immediate visual cue.
Shading Effect: Two dashed lines are drawn above and below the EMA (at half the pip threshold distance) to create a subtle shading zone. These lines adopt a semi-transparent version of the EMA’s color, enhancing the visual representation of the trend’s strength.
How It Works
The indicator calculates the EMA based on the closing price and compares the current price to this average. By incorporating a pip-based threshold and a three-bar confirmation, it filters out noise and highlights only significant trend movements. The use of line.new instead of plot ensures compatibility with certain TradingView environments and offers a lightweight way to render the EMA and shading lines on the chart.
Usage
Trend Identification: Green signals a strong bullish trend, ideal for potential long entries; red indicates a strong bearish trend, suitable for short opportunities; purple suggests a range-bound market, where caution or range-trading strategies may apply.
Customization: Adjust the EMA period and pip threshold in the indicator settings to match your trading style or the volatility of your chosen market. For example, forex traders might set the threshold to 0.0002 for 2 pips on EUR/USD, while crypto traders might use 2.0 for BTC/USD.
Visual Clarity: The combination of EMA coloring, shading, and candle highlights provides a comprehensive view of market dynamics at a glance.
Opposite Delta Candle Highlighter with EMAs & Delta Boxes**Description:**
This indicator is designed to enhance market analysis by highlighting **candles with opposite-colored delta**, plotting **Exponential Moving Averages (EMAs)**, and displaying **delta volume as small boxes below the chart**.
🔹 **Key Features:**
✅ **Opposite Delta Candle Highlighting** – Candles where delta volume contradicts the price direction are highlighted with a **yellow background** and a **blue triangle** above the bar.
✅ **Three Exponential Moving Averages (EMAs)** – Includes **EMA (9, 21, 50)** to help identify trends and dynamic support/resistance levels.
✅ **Delta Volume Display** – Instead of large volume columns, delta is plotted as **small square boxes below the chart**, ensuring clear visibility without overlapping price candles.
✅ **Optimized for Lower Timeframes** – The indicator **automatically selects an appropriate lower timeframe** for more precise delta calculations.
🔹 **How It Works:**
- **Green Candle + Red Delta** → Opposite delta signal (Bearish Sign).
- **Red Candle + Green Delta** → Opposite delta signal (Bullish Sign).
- **Delta bars below the chart** indicate the strength of buying/selling pressure.
- **EMAs help identify the market trend** and potential trade entry zones.
🔹 **Use Cases:**
✔ **Scalping & Day Trading** – Identify potential reversals and trend continuation setups.
✔ **Volume Analysis** – Understand market participation and possible absorption.
✔ **Trend Confirmation** – Use EMAs to confirm trend direction alongside delta volume.
📌 *Best used with lower timeframes (1m, 5m, 15m) for detailed volume analysis.*
🚀 **Enhance your trading with real-time delta insights and price action analysis!**
Inside Bars/Candles [CodeCraftedTrading]This Pine Script indicator is designed to identify and visually represent inside bars or candles. Here's a breakdown of its features and functionality:
1. Inputs:
insideCandlesColor: Color of the inside bars or candles.
highColor: Color of the horizontal line representing the high of the inside bar.
lowColor: Color of the horizontal line representing the low of the inside bar.
showHighLowLabel: Option to display labels for the high and low prices.
2. Logic:
The script checks for the conditions of an inside bar:
high < high and low > low
If an inside bar is detected and is not already in the range:
* Stores the high and low prices of the previous bar.
* Records the parent bar index and sets the broken flag to false.
If the current bar's high exceeds the stored high or the low falls below the stored low, the broken flag is set to true.
If the current bar is within the stored high and low range, it is considered in-range.
The script then dynamically plots horizontal lines at the high and low prices of the parent bar until the inside bar is broken.
3. Visualization:
The inside bars are colored based on the insideCandlesColor.
Horizontal lines are drawn at the high and low prices of the parent bar within the inside bar.
Optional labels display the rounded values of the high and low prices.
4. Usage:
Apply the script to your chart.
Adjust the input parameters according to your preferences.
The indicator will highlight inside bars with colored bars and draw lines representing the high and low prices. Labels are optional.
5. Note:
Inside bars are bars where the entire price range is within the high and low of the previous bar.
The script uses historical bar information and visualizes the inside bars dynamically on the chart.
No Wick Bull/Bear Candlesticks with Arrow premiumNo Wick Bull/Bear Candlesticks with Arrow premium
This script is for a custom trading indicator called "No Wick Bull/Bear Candlesticks with Arrow premium" developed by ClearTradingMind. It is designed for use with trading platforms that support scripting, such as TradingView. This indicator combines several technical analysis tools to help traders identify potential buy and sell signals in a financial market.
Key Components of the Indicator:
Moving Average (MA): The script allows users to select from various types of moving averages (SMA, EMA, HMA, etc.), which smooth out price data to identify trends. Users can set the length and type of the moving average.
Upper and Lower Bands: These bands are set at a specified deviation percentage above and below the chosen moving average. They help in identifying overbought and oversold conditions.
No Wick Bull/Bear Candlestick Identification:
Bullish Condition: A bullish candlestick is identified when the closing price is higher than the opening price, the low equals the open, and the close is above the moving average.
Bearish Condition: A bearish candlestick is identified when the closing price is lower than the opening price, the high equals the open, and the close is below the moving average.
No Wick: These conditions also imply that the candlesticks have no wicks, suggesting strong buying or selling pressure.
Arrows for Trading Signals:
No lower wick bull bar
No upper wick bear bar
When a bullish condition is met, a green upward-pointing triangle is plotted below the candlestick, indicating a potential buy signal.
When a bearish condition is met, a red downward-pointing triangle is plotted above the candlestick, indicating a potential sell signal.
EMA 20: An additional Exponential Moving Average with a length of 20 periods is plotted for further trend analysis.
Background Color Changes: The script changes the background color to blue if the EMA 20 is above the upper band, and to red if it is below the lower band, providing visual cues about the market trend.
How It Works:
Traders can input their preferences for the moving average type and length, source of the MA (like closing prices), and the deviation percentage for the bands.
The script then calculates the moving average, upper and lower bands, and checks for bullish or bearish candlestick conditions without wicks.
When such conditions are met, it plots arrows to suggest buy or sell signals.
The EMA 20 and background color changes offer additional trend information.
Usage:
This indicator is particularly useful in markets with clear trends. The no wick bull/bear candlesticks indicate strong buying or selling pressure, and the arrows provide clear visual signals for traders to consider entering or exiting positions. As with all trading indicators, it's recommended to use this tool in conjunction with other forms of analysis to confirm trading signals.
Intra-Candles*For use with <=24 hour Hollow Candles *
Indicator for more informative candle plotting. Select from 2-6 lower timeframe candles and view the price action of the lower bars within the normal chart's candles. Plotting short time frame candles with a semi-transparent body lets you see reversals that occurred during the larger candle's formation. Use the information provided to inform your own trading decisions.
Hull Candles [BigBitsIO]This script is for custom candles based on an HMA calculation with a default period of 10 as well as an SMA of the close price, defaulted to 1 period to only show the current price. The purpose of the custom candles is to try and reduce noise from candles and help identify trends. These custom candles somewhat resemble Heikin-Ashi candles in their appearance.
Explained:
- Open, High, Low and Close (o, h, l, and c) are all calculated using an HMA calculation based on a user input length/period, defaulted at 10.
- Candle colors are determined by using the same HMA calculation on the ohcl4 and comparing it to the previous candle. Green candles have an ohlc4 greater than the previous candle, all other candles are red.
- The current price is plotted with the default blue line with an SMA calculation with 1 period to allow customization of smoothing if necessary to identify trends.
DISCLAIMER: For educational and entertainment purposes only. Nothing in this content should be interpreted as financial advice or a recommendation to buy or sell any sort of security or investment including all types of crypto. DYOR, TYOB.
Delta Volume Candles [LucF]█ OVERVIEW
This indicator plots on-chart volume delta information using candles that can replace your normal candles, tops and bottoms appended to normal candles, optional MAs of those tops and bottoms levels, a divergence channel and a chart background. The indicator calculates volume delta using intrabar analysis, meaning that it uses the lower timeframe bars constituting each chart bar.
█ CONCEPTS
Volume Delta
The volume delta concept divides a bar's volume in "up" and "down" volumes. The delta is calculated by subtracting down volume from up volume. Many calculation techniques exist to isolate up and down volume within a bar. The simplest use the polarity of interbar price changes to assign their volume to up or down slots, e.g., On Balance Volume or the Klinger Oscillator . Others such as Chaikin Money Flow use assumptions based on a bar's OHLC values. The most precise calculation method uses tick data and assigns the volume of each tick to the up or down slot depending on whether the transaction occurs at the bid or ask price. While this technique is ideal, it requires huge amounts of data on historical bars, which considerably limits the historical depth of charts and the number of symbols for which tick data is available. Furthermore, historical tick data is not yet available on TradingView.
This indicator uses intrabar analysis to achieve a compromise between the simplest and most precise methods of calculating volume delta. It is currently the most precise method usable on TradingView charts. TradingView's Volume Profile built-in indicators use it, as do the CVD - Cumulative Volume Delta Candles and CVD - Cumulative Volume Delta (Chart) indicators published from the TradingView account . My Delta Volume Channels and Volume Delta Columns Pro indicators also use intrabar analysis. Other volume delta indicators such as my Realtime 5D Profile use realtime chart updates to calculate volume delta without intrabar analysis, but that type of indicator only works in real time; they cannot calculate on historical bars.
This is the logic I use to determine the polarity of intrabars, which determines the up or down slot where its volume is added:
• If the intrabar's open and close values are different, their relative position is used.
• If the intrabar's open and close values are the same, the difference between the intrabar's close and the previous intrabar's close is used.
• As a last resort, when there is no movement during an intrabar, and it closes at the same price as the previous intrabar, the last known polarity is used.
Once all intrabars making up a chart bar have been analyzed and the up or down property of each intrabar's volume determined, the up volumes are added, and the down volumes subtracted. The resulting value is volume delta for that chart bar, which can be used as an estimate of the buying/selling pressure on an instrument. Not all markets have volume information. Without it, this indicator is useless.
Intrabar analysis
Intrabars are chart bars at a lower timeframe than the chart's. The timeframe used to access intrabars determines the number of intrabars accessible for each chart bar. On a 1H chart, each chart bar of an active market will, for example, usually contain 60 bars at the lower timeframe of 1min, provided there was market activity during each minute of the hour.
This indicator automatically calculates an appropriate lower timeframe using the chart's timeframe and the settings you use in the script's "Intrabars" section of the inputs. As it can access lower timeframes as small as seconds when available, the indicator can be used on charts at relatively small timeframes such as 1min, provided the market is active enough to produce bars at second timeframes.
The quantity of intrabars analyzed in each chart bar determines:
• The precision of calculations (more intrabars yield more precise results).
• The chart coverage of calculations (there is a 100K limit to the quantity of intrabars that can be analyzed on any chart,
so the more intrabars you analyze per chart bar, the less chart bars can be calculated by the indicator).
The information box displayed at the bottom right of the chart shows the lower timeframe used for intrabars, as well as the average number of intrabars detected for chart bars and statistics on chart coverage.
Balances
This indicator calculates five balances from volume delta values. The balances are oscillators with a zero centerline; positive values are bullish, and negative values are bearish. It is important to understand the balances as they can be used to:
• Color candle bodies.
• Calculate body and top and bottom divergences.
• Color an EMA channel.
• Color the chart's background.
• Configure markers and alerts.
The five balances are:
1 — Bar Balance : This is the only balance using instant values; it is simply the subtraction of the down volume from the up volume on the bar, so the instant volume delta for that bar.
2 — Average Balance : Calculates a distinct EMA for both the up and down volumes, and subtracts the down EMA from the up EMA.
The result is akin to MACD's histogram because it is the subtraction of two moving averages.
3 — Momentum Balance : Starts by calculating, separately for both up and down volumes, the difference between the same EMAs used in "Average Balance" and
an SMA of twice the period used for the "Average Balance" EMAs. The difference for the up side is subtracted from the difference for the down side,
and an RSI of that value is calculated and brought over the −50/+50 scale.
4 — Relative Balance : The reference values used in the calculation are the up and down EMAs used in the "Average Balance".
From those, we calculate two intermediate values using how much the instant up and down volumes on the bar exceed their respective EMA — but with a twist.
If the bar's up volume does not exceed the EMA of up volume, a zero value is used. The same goes for the down volume with the EMA of down volume.
Once we have our two intermediate values for the up and down volumes exceeding their respective MA, we subtract them. The final value is an ALMA of that subtraction.
The rationale behind using zero values when the bar's up/down volume does not exceed its EMA is to only take into account the more significant volume.
If both instant volume values exceed their MA, then the difference between the two is the signal's value.
The signal is called "relative" because the intermediate values are the difference between the instant up/down volumes and their respective MA.
This balance flatlines when the bar's up/down volumes do not exceed their EMAs, which makes it useful to spot areas where trader interest dwindles, such as consolidations.
The smaller the period of the final value's ALMA, the more easily it will flatline. These flat zones should be considered no-trade zones.
5 — Percent Balance : This balance is the ALMA of the ratio of the "Bar Balance" over the total volume for that bar.
From the balances and marker conditions, two more values are calculated:
1 — Marker Bias : This sums the up/down (+1/‒1) occurrences of the markers 1 to 4 over a period you define, so it ranges from −4 to +4, times the period.
Its calculation will depend on the modes used to calculate markers 3 and 4.
2 — Combined Balances : This is the sum of the bull/bear (+1/−1) states of each of the five balances, so it ranges from −5 to +5.
The periods for all of these balances can be configured in the "Periods" section at the bottom of the script's inputs. As you cannot see the balances on the chart, you can use my Volume Delta Columns Pro indicator in a pane; it can plot the same balances, so you will be able to analyze them.
Divergences
In the context of this indicator, a divergence is any bar where the bear/bull state of a balance (above/below its zero centerline) diverges from the polarity of a chart bar. No directional bias is assigned to divergences when they occur. Candle bodies and tops/bottoms can each be colored differently on divergences detected from distinct balances.
Divergence Channel
The divergence channel is the space between two levels (by default, the bar's open and close ) saved when divergences occur. When price (by default the close ) has breached a channel and a new divergence occurs, a new channel is created. Until that new channel is breached, bars where additional divergences occur will expand the channel's levels if the bar's price points are outside the channel.
Prices breaches of the divergence channel will change its state. Divergence channels can be in one of three different states:
• Bull (green): Price has breached the channel to the upside.
• Bear (red): Price has breached the channel to the downside.
• Neutral (gray): The channel has not yet been breached.
█ HOW TO USE THE INDICATOR
I do not make videos to explain how to use my indicators. I do, however, try hard to include in their description everything one needs to understand what they do. From there, it's up to you to explore and figure out if they can be useful in your trading practice. Communicating in videos what this description and the script's tooltips contain would make for very long videos that would likely exceed the attention span of most people who find this description too long. There is no quick way to understand an indicator such as this one because it uses many different concepts and has quite a bit of settings one can use to modify its visuals and behavior — thus how one uses it. I will happily answer questions on the inner workings of the indicator, but I do not answer questions like "How do I trade using this indicator?" A useful answer to that question would require an in-depth analysis of who you are, your trading methodology and objectives, which I do not have time for. I do not teach trading.
Start by loading the indicator on an active chart containing volume information. See here if you need help.
The default configuration displays:
• Normal candles where the bodies are only colored if the bar's volume has increased since the last bar.
If you want to use this indicator's candles, you may want to disable your chart's candles by clicking the eye icon to the right of the symbol's name in the top left of the chart.
• A top or bottom appended to the normal candles. It represents the difference between up and down volume for that bar
and is positioned at the top or bottom, depending on its polarity. If up volume is greater than down volume, a top is displayed. If down volume is greater, a bottom is plotted.
The size of tops and bottoms is determined by calculating a factor which is the proportion of volume delta over the bar's total volume.
That factor is then used to calculate the top or bottom size relative to a baseline of the average candle body size of the last 100 bars.
• An information box in the bottom right displaying intrabar and chart coverage information.
• A light red background when the intrabar volume differs from the chart's volume by more than 1%.
The script's inputs contain tooltips explaining most of the fields. I will not repeat them here. Following is a brief description of each section of the indicator's inputs which will give you an idea of what the indicator can do:
Normal Candles is where you configure the replacement candles plotted by the script. You can choose from different coloring schemes for their bodies and specify a unique color for bodies where a divergence calculated using the method you choose occurs.
Volume Tops & Botttoms is where you configure the display of tops and bottoms, and their EMAs. The EMAs are calculated from the high point of tops and the low point of bottoms. They can act as a channel to evaluate price, and you can choose to color the channel using a gradient reflecting the advances/declines in the balance of your choice.
Divergence Channel is where you set up the appearance and behavior of the divergence channel. These areas represent levels where price and volume delta information do not converge. They can be interpreted as regions with no clear direction from where one will look for breaches. You can configure the channel to take into account one or both types of divergences you have configured for candle bodies and tops/bottoms.
Background allows you to configure a gradient background color that reflects the advances/declines in the balance of your choice. You can use this to provide context to the volume delta values from bars. You can also control the background color displayed on volume discrepancies between the intrabar and the chart's timeframe.
Intrabars is where you choose the calculation mode determining the lower timeframe used to access intrabars. The indicator uses the chart's timeframe and the type of market you are on to calculate the lower timeframe. Your setting there should reflect which compromise you prefer between the precision of calculations and chart coverage. This is also where you control the display of the information box in the lower right corner of the chart.
Markers allows you to control the plotting of chart markers on different conditions. Their configuration determines when alerts generated from the indicator will fire. Note that in order to generate alerts from this script, they must be created from your chart. See this Help Center page to learn how. Only the last 500 markers will be visible on the chart, but this will not affect the generation of alerts.
Periods is where you configure the periods for the balances and the EMAs used in the indicator.
The raw values calculated by this script can be inspected using the Data Window.
█ INTERPRETATION
Rightly or wrongly, volume delta is considered by many a useful complement to the interpretation of price action. I use it extensively in an attempt to find convergence between my read of volume delta and price movement — not so much as a predictor of future price movement. No system or person can predict the future. Accordingly, I consider people who speak or act as if they know the future with certainty to be dangerous to themselves and others; they are charlatans, imprudent or blissfully ignorant.
I try to avoid elaborate volume delta interpretation schemes involving too many variables and prefer to keep things simple:
• Trends that have more chances of continuing should be accompanied by VD of the same polarity.
In trends, I am looking for "slow and steady". I work from the assumption that traders and systems often overreact, which translates into unproductive volatility.
Wild trends are more susceptible to overreactions.
• I prefer steady VD values over wildly increasing ones, as large VD increases often come with increased price volatility, which can backfire.
Large VD values caused by stopping volume will also often occur on trend reversals with abnormally high candles.
• Prices escaping divergence channels may be leading a trend in that direction, although there is no telling how long that trend will last; could be just a few bars or hundreds.
When price is in a channel, shifts in VD balances can sometimes give us an idea of the direction where price has the most chance of breaking.
• Dwindling VD will often indicate trend exhaustion and predate reversals by many bars, but the problem is that mere pauses in a trend will often produce the same behavior in VD.
I think it is too perilous to infer rigidly from VD decreases.
Divergence Channel
Here I have configured the divergence channels to be visible. First, I set the bodies to display divergences on the default Bar Balance. They are indicated by yellow bodies. Then I activated the divergence channels by choosing to draw levels on body divergences and checked the "Fill" checkbox to fill the channel with the same color as the levels. The divergence channel is best understood as a direction-less area from where a breach can be acted on if other variables converge with the breach's direction:
Tops and Bottoms EMAs
I find these EMAs rather interesting. They have no equivalent elsewhere, as they are calculated from the top and bottom values this indicator plots. The only similarity they have with volume-weighted MAs, including VWAP, is that they use price and volume. This indicator's Tops and Bottoms EMAs, however, use the price and volume delta. While the channel differs from other channels in how it is calculated, it can be used like others, as a baseline from which to evaluate price movement or, alternatively, as stop levels. Remember that you can change the period used for the EMAs in the "Periods" section of the inputs.
This chart shows the EMAs in action, filled with a gradient representing the advances/decline from the Momentum balance. Notice the anomaly in the chart's latest bars where the Momentum balance gradient has been indicating a bullish bias for some time, during which price was mostly below the EMAs. Price has just broken above the channel on positive VD. My interpretation of this situation would be that it is a risky opportunity for a long trade in the larger context where the market has been in a downtrend since the 5th. Intrepid traders choosing to enter here could do so with a "make or break" tight stop that will minimize their losses should the market continue its downtrend while hopefully preserving the potential upside of price continuing on the longer-term uptrend prevalent since the 28th:
█ NOTES
Volume
If you use indicators such as this one which depends on volume information, it is important to realize that the volume data they consume comes from data feeds, and that all data feeds are NOT created equally. Those who create the data feeds we use must make decisions concerning the nature of the transactions they tally and the way they are tallied in each feed, and these decisions affect the nature of our volume data. My Volume X-ray publication discusses some of the reasons why volume information from different timeframes, brokers/exchanges or sectors may vary considerably. I encourage you to read it. This indicator's display of a warning through a background color on volume discrepancies between the timeframe used to access intrabars and the chart's timeframe is an attempt to help you realize these variations in feeds. Don't take things for granted, and understand that the quality of a given feed's volume information affects the quality of the results this indicator calculates.
Markets as ecosystems
I believe it is perilous to think that behavioral patterns you discover in one market through the lens of this or any other indicator will necessarily port to other markets. While this may sometimes be the case, it will often not. Why is that? Because each market is its own ecosystem. As cities do, all markets share some common characteristics, but they also all have their idiosyncrasies. A proportion of a city's inhabitants is always composed of outsiders who come and go, but a core population of regulars and systems is usually the force that actually defines most of the city's observable characteristics. I believe markets work somewhat the same way; they may look the same, but if you live there for a while and pay attention, you will notice the idiosyncrasies. Some things that work in some markets will, accordingly, not work in others. Please keep that in mind when you draw conclusions.
On Up/Down or Buy/Sell Volume
Buying or selling volume are misnomers, as every unit of volume transacted is both bought and sold by two different traders. While this does not keep me from using the terms, there is no such thing as “buy only” or “sell only” volume. Trader lingo is riddled with peculiarities. Without access to order book information, traders work with the assumption that when price moves up during a bar, there was more buying pressure than selling pressure, just as when buy market orders take out limit ask orders in the order book at successively higher levels. The built-in volume indicator available on TradingView uses this logic to color the volume columns green or red. While this script’s calculations are more precise because it analyses intrabars to calculate its information, it uses pretty much the same imperfect logic. Until Pine scripts can have access to how much volume was transacted at the bid/ask prices, our volume delta calculations will remain a mere proxy.
Repainting
• The values calculated on the realtime bar will update as new information comes from the feed.
• Historical values may recalculate if the historical feed is updated or when calculations start from a new point in history.
• Markers and alerts will not repaint as they only occur on a bar's close. Keep this in mind when viewing markers on historical bars,
where one could understandably and incorrectly assume they appear at the bar's open.
To learn more about repainting, see the Pine Script™ User Manual's page on the subject .
Superfluity
In "The Bed of Procrustes", Nassim Nicholas Taleb writes: To bankrupt a fool, give him information . This indicator can display a lot of information. The inevitable adaptation period you will need to figure out how to use it should help you eliminate all the visuals you do not need. The more you eliminate, the easier it will be to focus on those that are the most useful to your trading practice. Don't be a fool.
█ THANKS
Thanks to alexgrover for his Dekidaka-Ashi indicator. His volume plots on candles were the inspiration for my top/bottom plots.
Kudos to PineCoders for their libraries. I use two of them in this script: Time and lower_tf .
The first versions of this script used functionality that I would not have known about were it not for these two guys:
— A guy called Kuan who commented on a Backtest Rookies presentation of their Volume Profile indicator.
— theheirophant , my partner in the exploration of the sometimes weird abysses of request.security() ’s behavior at lower timeframes.
