OPEN-SOURCE SCRIPT
Weighted Volume ROC Oscillator
The Weighted Volume ROC Oscillator is an advanced trend following oscillator that uses Volume Weighted ROC to determine trend direction, trend strength & potential reversal points.
Benefits:
- High
ETHUSD performance
- High speed
- Low noise
- Plotting that eases interpretation and shows potential reversal points
The Idea
The idea is to get a high speed oscillator that can follow trends smoothly, but also quickly. A great fit for this seemed to be the ROC, but alone it was not that good. So, I added a WMA source smoothing, to make the ROC oscillator operate on a smoother source. To add responsivness, I made it weighted towards volume, weighting higher volume trades more against lower volume trades.
How it works
1. Calculate Double-WMA smoothed source
First uses a WMA of √length on the source, to filter excess noise and keep it responsive.
Then adds another WMA on top of this WMA with the same length, smoothing the source even more.
2. Calculate Volume Weighted ROC
Simple =>
Volume Weighted ROC = (WMA source - WMA source[1 bar ago])*Volume
3. Average it out
WVRO = Volume Weighted ROC/∑Volume
This provides users with high speed & low noise indicator, that can help users catch trends and profit during trending environments.
Enjoy Gs!
Benefits:
- High
ETHUSD performance- High speed
- Low noise
- Plotting that eases interpretation and shows potential reversal points
The Idea
The idea is to get a high speed oscillator that can follow trends smoothly, but also quickly. A great fit for this seemed to be the ROC, but alone it was not that good. So, I added a WMA source smoothing, to make the ROC oscillator operate on a smoother source. To add responsivness, I made it weighted towards volume, weighting higher volume trades more against lower volume trades.
How it works
1. Calculate Double-WMA smoothed source
First uses a WMA of √length on the source, to filter excess noise and keep it responsive.
Then adds another WMA on top of this WMA with the same length, smoothing the source even more.
2. Calculate Volume Weighted ROC
Simple =>
Volume Weighted ROC = (WMA source - WMA source[1 bar ago])*Volume
3. Average it out
WVRO = Volume Weighted ROC/∑Volume
This provides users with high speed & low noise indicator, that can help users catch trends and profit during trending environments.
Enjoy Gs!
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.
"Better to take a step back, than to stand stuck forever."
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.
"Better to take a step back, than to stand stuck forever."
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.