umur.ozkul

Volume Impact

Volume Impact (The area)
Average Volume (The thick line, xTrigger)

Volume Impact = Volume Chance - Average Volume

It provides very reliable buy sell signals. Buy(green) when increasing, sell(red) when decreasing. Volume Impact might drop before the actual price so it has an early warning potential.

Before trend changes volume average diverges from the prices. It moves reverse to the prices.
Also before trend changes, volume impact peaks diverges from price peaks. So you know a big drop is coming.

Klinger Volume Oscillator inspired this indicator... This data is there but it is more difficult to interpret.

In summary, you can foresee trend changes.
Release Notes: Colors the price bars according to Volume Impact. This emphasizes the future price direction.

You can revert to the default bar colors in the options. Or select other coloring criteria
Release Notes: Bugfix
Release Notes: Changed the default bar color strategy
Release Notes: Default TrigLen is now 7. Trigger is now a more reliable trend predictor
Release Notes: Bugfix
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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Comments

Here is a demonstration of the new bar-color option. It is powerful especially with Renko bars:
+3 Reply