Volume Spike, Price Move >3% Spike with Vol & Gap Up Identifier
Title: Identifying Volume Spikes, Price Movements and Gap Ups: A TradingView Script
Introduction:
In the world of trading, identifying volume spikes and price movements can provide valuable insights into market trends and potential trading opportunities. In this article, we'll explore a TradingView script that helps traders visualize volume spikes, price up moves with volume spikes, and gap-up days on their charts.
Detecting Price Up Moves:
The script starts by calculating price up moves. It compares the current day's closing price with the previous day's closing price and checks if it has increased by 3% or more. This helps traders spot significant upward price movements.
Detecting Volume Spurts:
Next, the script focuses on detecting volume spikes, which are often associated with increased market activity and potential trading opportunities. It compares the current day's volume with the highest volume of the previous nine sessions. If the current volume exceeds all the volumes of the previous nine sessions, it is considered a volume spurt.
Example:
Let's consider a hypothetical scenario where we have the following volume data for a stock:
Day 1: 100,000
Day 2: 80,000
Day 3: 120,000
Day 4: 150,000
Day 5: 200,000
Day 6: 90,000
Day 7: 110,000
Day 8: 130,000
Day 9: 140,000
Day 10: 250,000 (current day)
To determine if there is a volume spurt on Day 10, the script compares the current day's volume (250,000) with the highest volume of the previous nine sessions. In this case, the highest volume among the previous nine sessions is 200,000 (on Day 5). Since the current day's volume (250,000) exceeds the highest volume of the previous nine sessions (200,000), it is considered a volume spurt.
Identifying Gap-Up Days:
Gap-up days occur when the market opens significantly higher than the previous day's close. To identify these days, the script compares the current day's low price with the previous day's high price. If the low price is greater than the previous day's high, it is marked as a gap-up day.
Visualizing the Findings:
To provide a clear visual representation of the identified patterns, the script uses different shapes and colors. First, it plots small red dots above the candles whenever a volume spurt is detected. These dots help traders quickly identify periods of increased volume activity.
For price up moves with volume spikes, the script utilizes blue triangular shapes below the candles. This allows traders to pinpoint instances where both price and volume are showing positive signs, indicating potential bullish movements.
Additionally, the script incorporates green candles to represent gap-up days. These candles help traders recognize days when the market opens with a significant upward gap, suggesting a potential shift in market sentiment.
Conclusion:
The TradingView script discussed in this article provides traders with a visual representation of volume spikes, price up moves with volume spikes, and gap-up days. By incorporating these visual cues into their analysis, traders can gain valuable insights into market trends and potential trading opportunities.
Remember, this script should be used for educational and informational purposes only and does not serve as financial advice or recommendations. Traders are encouraged to customize and modify the script according to their specific trading strategies and risk tolerance.
Share this script with other traders on TradingView to enhance their chart analysis and trading decisions.
PS: This TradingView script is designed to work specifically on the daily timeframe (daily candles). It calculates and identifies volume spurts based on the volume data of the daily timeframe. Since it is designed for the daily timeframe, it may not produce accurate results or work as intended on other timeframes.
Introduction:
In the world of trading, identifying volume spikes and price movements can provide valuable insights into market trends and potential trading opportunities. In this article, we'll explore a TradingView script that helps traders visualize volume spikes, price up moves with volume spikes, and gap-up days on their charts.
Detecting Price Up Moves:
The script starts by calculating price up moves. It compares the current day's closing price with the previous day's closing price and checks if it has increased by 3% or more. This helps traders spot significant upward price movements.
Detecting Volume Spurts:
Next, the script focuses on detecting volume spikes, which are often associated with increased market activity and potential trading opportunities. It compares the current day's volume with the highest volume of the previous nine sessions. If the current volume exceeds all the volumes of the previous nine sessions, it is considered a volume spurt.
Example:
Let's consider a hypothetical scenario where we have the following volume data for a stock:
Day 1: 100,000
Day 2: 80,000
Day 3: 120,000
Day 4: 150,000
Day 5: 200,000
Day 6: 90,000
Day 7: 110,000
Day 8: 130,000
Day 9: 140,000
Day 10: 250,000 (current day)
To determine if there is a volume spurt on Day 10, the script compares the current day's volume (250,000) with the highest volume of the previous nine sessions. In this case, the highest volume among the previous nine sessions is 200,000 (on Day 5). Since the current day's volume (250,000) exceeds the highest volume of the previous nine sessions (200,000), it is considered a volume spurt.
Identifying Gap-Up Days:
Gap-up days occur when the market opens significantly higher than the previous day's close. To identify these days, the script compares the current day's low price with the previous day's high price. If the low price is greater than the previous day's high, it is marked as a gap-up day.
Visualizing the Findings:
To provide a clear visual representation of the identified patterns, the script uses different shapes and colors. First, it plots small red dots above the candles whenever a volume spurt is detected. These dots help traders quickly identify periods of increased volume activity.
For price up moves with volume spikes, the script utilizes blue triangular shapes below the candles. This allows traders to pinpoint instances where both price and volume are showing positive signs, indicating potential bullish movements.
Additionally, the script incorporates green candles to represent gap-up days. These candles help traders recognize days when the market opens with a significant upward gap, suggesting a potential shift in market sentiment.
Conclusion:
The TradingView script discussed in this article provides traders with a visual representation of volume spikes, price up moves with volume spikes, and gap-up days. By incorporating these visual cues into their analysis, traders can gain valuable insights into market trends and potential trading opportunities.
Remember, this script should be used for educational and informational purposes only and does not serve as financial advice or recommendations. Traders are encouraged to customize and modify the script according to their specific trading strategies and risk tolerance.
Share this script with other traders on TradingView to enhance their chart analysis and trading decisions.
PS: This TradingView script is designed to work specifically on the daily timeframe (daily candles). It calculates and identifies volume spurts based on the volume data of the daily timeframe. Since it is designed for the daily timeframe, it may not produce accurate results or work as intended on other timeframes.
Release Notes:
VPSG Identifier With Sector & Industry Info
Description:
Hello, traders! I'm excited to share an enhanced update to our popular TradingView script. We've made significant improvements to provide you with a more versatile and informative tool for analyzing price movements. Your feedback is invaluable, and we encourage you to share your thoughts to help us continue refining this script.
What's New:
1. Minimum Volume Condition: We've now incorporated an additional condition for calculating the volume spurt. The script considers the volume on the day, and it must be above a minimum volume level, set to 1 million by default. This ensures that you identify significant volume spikes for potential trading opportunities.
2. Auto Shape Sizing: To enhance the adaptability of the indicator to various screen sizes and backgrounds, we've resized the visual elements (Circles and Triangles) to "Auto Shape." This means the shapes will automatically adjust to your screen, providing better clarity and user experience.
3. Dark Background Optimization: While we've made changes with a dark background in mind, please note that you may need to adjust the colors if you're using a white background. Customization is key to make the indicator work seamlessly for your preferences.
4. Sector and Industry Information: We've added a sector and industry information feature, inspired by @SelfUnmade 's script. This addition offers more context for your analysis, helping you make more informed trading decisions.
Your Feedback Matters:
We're committed to refining this script based on your feedback. If you have suggestions, encounter any issues, or want to share your experiences, please do so in the comments. Your input helps us continuously improve this tool.
Description:
Hello, traders! I'm excited to share an enhanced update to our popular TradingView script. We've made significant improvements to provide you with a more versatile and informative tool for analyzing price movements. Your feedback is invaluable, and we encourage you to share your thoughts to help us continue refining this script.
What's New:
1. Minimum Volume Condition: We've now incorporated an additional condition for calculating the volume spurt. The script considers the volume on the day, and it must be above a minimum volume level, set to 1 million by default. This ensures that you identify significant volume spikes for potential trading opportunities.
2. Auto Shape Sizing: To enhance the adaptability of the indicator to various screen sizes and backgrounds, we've resized the visual elements (Circles and Triangles) to "Auto Shape." This means the shapes will automatically adjust to your screen, providing better clarity and user experience.
3. Dark Background Optimization: While we've made changes with a dark background in mind, please note that you may need to adjust the colors if you're using a white background. Customization is key to make the indicator work seamlessly for your preferences.
4. Sector and Industry Information: We've added a sector and industry information feature, inspired by @SelfUnmade 's script. This addition offers more context for your analysis, helping you make more informed trading decisions.
Your Feedback Matters:
We're committed to refining this script based on your feedback. If you have suggestions, encounter any issues, or want to share your experiences, please do so in the comments. Your input helps us continuously improve this tool.