Vasyl Ivanov | Active Volumes

Sep 17

Volumes Indicator with Active Volume Detection

This indicator provides a more granular view of market volumes by combining data from a child timeframe. It introduces the concept of Active Volumes, highlighting periods of increasing market activity, giving traders a clearer understanding of volume dynamics.

Key Features:

• Active Volumes:
  
  Active volumes are calculated by summing up the volumes from the child timeframe bars where the volume was higher than the previous bar.
  This helps you quickly identify periods where buying or selling pressure is increasing, giving insight into stronger market participation.
  
• Total Volume and Active Volume per Bar:
  
  The indicator displays two key volume values for each bar on the chart: [] Total Volume: The combined volume for the bar, calculated by summing up all child timeframe volumes. [] Active Volume: The volume that only counts when there is an increase from the previous child timeframe bar's volume, making it useful to identify strong momentum shifts.
• Customizable Child Timeframe:
  
  Users can select any child timeframe in the indicator’s settings to aggregate the volume data. This flexibility allows traders to adjust the indicator based on their preferred timeframe for analysis.
  

How It Works:

The Volumes Indicator aggregates volumes from a specified child timeframe. Each bar on the chart is calculated by combining the volume data from the child bars. The indicator highlights two values:

• Total Volume, which represents the entire volume of trades within the bar.
  
• Active Volume, which focuses on periods where the volume increased from one bar to the next in the child timeframe.

This allows traders to pinpoint more active trading periods, improving volume-based decision-making.

Use Cases:

• Identifying Momentum: By focusing on active volumes, traders can spot periods of increasing market participation, which may signal trends or reversals.
  
• Scalping or Short-Term Trading: Use lower child timeframes to identify short-term volume spikes and adjust your entries/exits accordingly.
  
• Long-Term Volume Analysis: Apply higher child timeframes to get a broader perspective on market activity over time.

Why It’s Unique:
Unlike traditional volume indicators that show only the total volume, this indicator offers a detailed breakdown of market activity, highlighting periods of increasing volume through Active Volume. The ability to customize the child timeframe makes it highly adaptable to various trading strategies, offering deeper insights into volume analysis.

Oct 11

Release Notes

Added volumes EMA