BUY & SELL PRICE TO VOLUME PRESSURE By Ricardo M Arjona @xel_arjona
DISCLAIMER:
The Following indicator/code IS NOT intended to be a formal investment advice or recommendation by the author, nor should be construed as such. Users will be fully responsible by their use regarding their own trading vehicles/assets.
The embedded code and ideas within this work are FREELY AND PUBLICLY available on the Web for NON LUCRATIVE ACTIVITIES and must remain as is.
Pine Script code MOD's and adaptations by @xel_arjona with special mention in regard of:
Buy (Bull) and Sell (Bear) "Power Balance Algorithm" by: Stocks & Commodities V. 21:10 (68-72): "Bull And Bear Balance Indicator by Vadim Gimelfarb"
Buy to Sell Convergence / Divergence and Volume Pressure Counterforce Histogram Ideas by: @xel_arjona
WHAT IS THIS? The following indicators try to acknowledge in a K-I-S-S approach to the eye (Keep-It-Simple-Stupid), the two most important aspects of nearly every trading vehicle: -- PRICE ACTION IN RELATION BY IT'S VOLUME --
Volume Pressure Histogram: Columns plotted in positive are considered the dominant Volume Force for the given period. All "negative" columns represents the counterforce Vol.Press against the dominant.
Buy to Sell Convergence / Divergence: It's a simple adaptation of the popular "Price Percentage Oscillator" or MACD but taking Buying Pressure against Selling Pressure Averages, so given a Positive oscillator reading (>0) represents Bullish dominant Trend and a Negative reading (<0) a Bearish dominant Trend. Histogram is the diff between RAW Volume Pressures Convergence/Divergence minus Normalised ones (Signal) which helps as a confirmation.
Volume bars are by default plotted from RAW Volume Pressure algorithms, but they can be as well filtered with Karthik Marar's approach against a "Total Volume Average" in favor to clean day to day noise like HFT.
ALL NEW IDEAS OR MODIFICATIONS to these indicators are Welcome in favor to deploy a better and more accurate readings. I will be very glad to be notified at Twitter: @xel_arjona
Any important addition to this work MUST REMAIN PUBLIC by means of CreativeCommons CC & TradingView. -- 2015
Is it possible to make Alerts in to this Study ? Would have been a great tool with alerts.
Nice Study..:-)
xrpxrp
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Thanks for this, is it possible to adapt to include multiple exchanges - im a complete pine novice, with no real experience in pine other than cut paste. Any help appreciated. cheers, Lee
This is really good markets run on volume n this one says it all
kenqazwsx
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Best indicator
siddiqs682
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Tyygf
joelrieck
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Like this indicator. Too bad TV doesn't have access to bid/ask data to make TRUE volume based indicators like this or delta.
SpinDown
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Brilliant. This has become one of my all-time favorite indicators. As someone who subscribes to the K.I.S.S. philosophy... It's the simplest tools that you find yourself using the most. Like a good knife.
Milesb85
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Love this, really do. i have a question as to how it is derived as it works on SPX which doesn't include volume data usually? Thanks in advance Xel!
xel_arjona
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@Milesb85, Thanks for the kind words, glad you like some of my indies. As for the non zero volumes, you use a little recursion/procedure to normalize values to 1 with: normilizedVolume = nz( volume 0, 1 ), This way, all algorithms that use sum of volumes to factorize or weight with it tend to make a sum of the form 1/N that equals a convolution to the form of the 'Simple Algebraic Average'. Cheers.
Nice Study..:-)