OPEN-SOURCE SCRIPT
Relative Volume Standard Deviation
The Relative Volume Standard Deviation indicator is a powerful tool designed for traders seeking insights into volume dynamics. This indicator assesses the deviation of a security's trading volume from its moving average, shedding light on potential shifts in market sentiment.
Key Features:
-Length: Tailor the indicator's sensitivity by adjusting the length of the moving average.
-Number of Deviations: Customize the analysis by specifying the number of standard deviations to consider.
-Show Negative Values: Toggle the visibility of negative values in the plot for a comprehensive view.
How it Works:
-Moving Average Calculation: The script computes the simple moving average (SMA) of the trading volume over the specified length, providing a baseline for comparison.
-Standard Deviation Analysis: It calculates the standard deviation of the volume, identifying deviations from the average volume.
-Relative Volume Standard Deviation: The indicator then normalizes the difference between the volume and its moving average by the calculated standard deviation, producing a relative measure of volume deviation.
-Visual Representation: The result is visually represented on the chart using columns. Green columns signify relative volume standard deviation values greater than or equal to the specified number of deviations, while red columns represent values below this threshold.
-Enhancements:
Show Deviation Level: Optionally, a dashed horizontal line at the specified deviation level adds an extra layer of analysis, aiding in the identification of significant deviations.
Key Features:
-Length: Tailor the indicator's sensitivity by adjusting the length of the moving average.
-Number of Deviations: Customize the analysis by specifying the number of standard deviations to consider.
-Show Negative Values: Toggle the visibility of negative values in the plot for a comprehensive view.
How it Works:
-Moving Average Calculation: The script computes the simple moving average (SMA) of the trading volume over the specified length, providing a baseline for comparison.
-Standard Deviation Analysis: It calculates the standard deviation of the volume, identifying deviations from the average volume.
-Relative Volume Standard Deviation: The indicator then normalizes the difference between the volume and its moving average by the calculated standard deviation, producing a relative measure of volume deviation.
-Visual Representation: The result is visually represented on the chart using columns. Green columns signify relative volume standard deviation values greater than or equal to the specified number of deviations, while red columns represent values below this threshold.
-Enhancements:
Show Deviation Level: Optionally, a dashed horizontal line at the specified deviation level adds an extra layer of analysis, aiding in the identification of significant deviations.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.