marketsurvivalist

Volume Spike Analysis [marketsurvivalist]

This indicator is based on the ideas about Volume Spike Analysis written about by Vincent Kott in his book Volume Spike Analysis. Formulas are presented in the book for another platform, but I wrote the script based on the charts he provided.

The indicator basically takes out the noise and colors bars based on factors of time and volume for day. There are three different time periods you can set: Short, Medium, Long. Each period can be set with a different color. The period value looks for highest volume bar within that period. If today's volume bar is the hightest value, it colors the volume bar based on the formatted color. It does not matter if the price bar is up or down. The defaults are 4 days, 20 days, 100 days. There is also a volume moving average available to show or hide based on you trading style.

The purpose is to easily see changes in volume . Typically, you would like to see volume rising as a new trend begins. This will show up quickly as you will see a cluster of rising red and / or purple bars.
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.

Want to use this script on a chart?
//
// @author MarketSurvivalist
// This indicator is based on the ideas written about by Vincent Kott in his book Volume Spike Analysis 
// (http://www.amazon.com/Volume-Spike-Analysis-Includes-indicators-ebook/dp/B00F87ZMK8)
//

study("Volume Spike Analysis [marketsurvivalist]", shorttitle="VSA_MS")

shortLookback=input(4)
mediumLookback=input(20)
longLookback=input(100)
showMA=input(true)
lengthMA=input(60)

v2 = volume

highestShort = highest(volume, shortLookback)
highestMedium = highest(volume, mediumLookback)
highestLong = highest(volume, longLookback)

c = iff(highestLong == v2, blue, iff(highestMedium == v2, purple, iff(highestShort == v2, red, white)))
    
plot(v2, style=columns, color=c)
plot(showMA?sma(v2, lengthMA):na, color=aqua)

Comments

What are the default color values?
Reply
This is great, thanks!
Reply
Sir ts really good indicator buy when implementing it how to use the strategy how to use it for exact entry exits pls and suggestions pls
Reply
SheldonPatnett Bornleader
@Bornleader, that's really for you to decide. Have you read the book? :)
Reply
aka Better Volume ???
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Private Messages Chat Sign Out