The simplicity of this indicator is REALLY what has me gassed up. It's the smallest indicator I have coded but it is just so powerful. There are a million oscillators out there based on volume. My biggest problem with them is that they simply tell you whether you have volume to the upside or volume to the down side. It kind of tricks you with the lack of information into thinking you have a change in your trend or that you're going to be able to break out of a range across a moving average or through some trend line or support and resistance.
However many of these Oscillators are failing because they lack to tell you one key thing. They tell you that you have volume but they never tell you if it's enough volume. Even a popular indicator like the MACD can have its MACD Line crossing upwards over the signal, telling you that you have an uptrend but again it's still failing to give you the results of how much volume of trades you have and "is it enough" volume in that crossover. It boils down to the one key fact that without volume there is no momentum. This should be able to make trading crossovers a lot easier.
So in today's video I'm going to show you the newest addition to the trading View Community Scripts and it is called,
From my own testing, this oscillator can predict whether the next candle will get you the move you need or not. In the markets you cannot have anything good without volume. After you have volume you have momentum. You cannot have momentum without volume and this is the key thing that causes people to fail when they look for breakouts, trend reversals, or if they're wondering whether this move is a fake out.
This indicator is based on the study of volume spread analysis or VSA.
This indicator is designed to be paired perfectly with the Heiken Ashi Algo oscillator.
This indicator is strictly to be used as a confirmation indicator and not to be used by itself to tell you when to buy or sell.
What are its Parts?
The Colored Columns or Volume Bars RED Column - Indicates volume movie downward Light Red - indicates volume is pulling back from a downward move Green - indicates volume is moving upwards Light Green - indicates volume is moving down from an outboard move
The void Is Green for bullish and red for bearish. This is a Cloud that appears extending from the center upwards and downwards. This is the average range of volume. Anything volume closing inside of this void is ranging volume or very little volume and it is not enough to break the trend or break out.
The MACD and MACD Signal Line Just like using the macd these two lines indicate whether the trend is moving up or the trend is moving down. But in this oscillator it's been colorized to show you when profits are being taken versus new positions being opened in either direction.
Rules for a SELL CONFIRMATION TRADE The macd line must be underneath the signal line and the macd line must be below the midline. A bullish column must appear below the midline and it must extend outside of the red void. if you are using the heikin-ashi Aldo oscillator you must also have a red Heiken Ashi candle close below -10. The MACD trend line must be a solid color and NOT black.
To open a LONG position you simply reverse the rules.
Hey, i'm ana ! i checked your video, how can i have your indicator ? Also i was wondering if you can be my mentor and help me with my trades ? I lost more than 32 000€... i have 500€ left, i cried a lot because of this situation, and when i started to lost money i started using leverage and it get just worst and worst... I would be so grateful if you could help me.. i would understand if you dont have time, but im desesperate right now... i just need to recover my losses, i guess with 500€ left it will be hard no ?
CoffeeshopCrypto
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@Anabie, u can recover but you should stop leveraging send me a direct message.
The link to get this indicator is in the video description
Anabie
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@CoffeeshopCrypto, hi i followed you on twitter but i can not send any message and here its the same i can not send any private message because i didnt contribute to the community :'(
Thank you for providing this valuable indicator and for all of your effort in compiling it. When using it on UNIUSDt charts, it seems to lag by three days, causing traders to miss the first three days of the upward trend and to fail to close three days after the peak. Maybe not coincidentally, those who use MACD primarily to take action when the MACD and signal lines cross also are quite consistently three days behind my action. My use of MACD is to use the trough of the MACD histograms as long as both the MACD line and signal line are well below the lowest point of large curved histogram to buy (as long as RSI is also below 30) and to sell when the MACD line and signal line are well above the large MACD histogram curved peak (as long as RSI is also above 70). Of course, it seems that most indicators, other than RSI and the MACD histogram, seem to lag, at least on the 1-day charts. Chaikin’s lag seems to be only by about a day for buy signals but still the usual two or three days for sell signals. BB %B is just unreliable but acts as further confirmation after noticing RSI first, MACD histogram second, etc. I do appreciate that this indicator takes volume and price into consideration, confirming momentum. Because of the lag between MACD line and signal line crossing, I’ve never cared about their relative positions to each other. However, because I do buy when I do, I can end up waiting through several days or sometimes weeks of long sideways movement that happens after my entry point, which makes the more typical traders’ waiting for confirmation of upward movement quite understandable. Of course, my tendency for “contrarian investing” differs from the more common “trend-following investing,” and maybe it’ll catch up with me someday. This way, though, I don’t miss any good entry points or exit points. Maybe the settings in this indicator can be tweaked in a way to eliminate this lag if you can advise how to set them with that intention.
CoffeeshopCrypto
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@kenwedin I can guarantee u r using this the wrong way. macd moves only after volume has pushed the price. this is a volume indicator and proceeds momentum by a lot. it has nothing to dowith macd and I'd love to sit with u so u can show me where / how u r seeing the initiation of ur move because I think (I'm pretty sure) u r taking ur longs when there's a bullish volume cross or shorts and a bearish volume cross. this would be aptly incorrect
kenwedin
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@CoffeeshopCrypto, I assume you meant "precedes" rather than "proceeds." Actually, I was talking about MACD independently of this indicator. I added the indicator a couple of hours ago to see whether it lines up with the pivot prices, which MACD consistently helps me find before other indicators. Note, however, that I did specify that I use RSI as my first indicator in the sequence, so I wouldn’t use MACD primarily or independently. It’s just a confirmation of RSI (-30 and +70), as are the series of other indicators. I guess I associated your indicator with MACD because it is in the MACD category, which you may wish to change if you feel it’s misplaced and belongs in a volume category. I can take a screenshot if you wish to see how there is a lag for your indicator if you wish.
CoffeeshopCrypto
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@kenwedin message me on here directly. I have a private voice chatroom we can sit in and discuss. this sounds very interesting
kenwedin
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@CoffeeshopCrypto, Okay, thanks. I have to teach a lesson now, followed by two others this evening, but I hope to chat with you there when he time works out. Thanks again.
i checked your video, how can i have your indicator ?
Also i was wondering if you can be my mentor and help me with my trades ?
I lost more than 32 000€... i have 500€ left, i cried a lot because of this situation, and when i started to lost money i started using leverage and it get just worst and worst...
I would be so grateful if you could help me.. i would understand if you dont have time, but im desesperate right now... i just need to recover my losses, i guess with 500€ left it will be hard no ?