OPEN-SOURCE SCRIPT

Volume Based Price Prediction [EdgeTerminal]

This indicator combines price action, volume analysis, and trend prediction to forecast potential future price movements. The indicator creates a dynamic prediction zone with confidence bands, helping you visualize possible price trajectories based on current market conditions.

Key Features
  • Dynamic price prediction based on volume-weighted trend analysis
  • Confidence bands showing potential price ranges
  • Volume-based candle coloring for enhanced market insight
  • VWAP and Moving Average overlay
  • Customizable prediction parameters
  • Real-time updates with each new bar



Technical Components:

Volume-Price Correlation: The indicator analyzes the relationship between price movements and volume, Identifies stronger trends through volume confirmation and uses Volume-Weighted Average Price (VWAP) for price equilibrium

Trend Strength Analysis: Calculates trend direction using exponential moving averages, weights trend strength by relative volume and incorporates momentum for improved accuracy

Prediction Algorithm: combines current price, trend, and volume metrics, projects future price levels using weighted factors and generates confidence bands based on price volatility


Customizable Parameters:
Moving Average Length: Controls the smoothing period for calculations
Volume Weight Factor: Adjusts how much volume influences predictions
Prediction Periods: Number of bars to project into the future
Confidence Band Width: Controls the width of prediction bands

How to use it:
Look for strong volume confirmation with green candles, watch for prediction line slope changes, use confidence bands to gauge potential volatility and compare predictions with key support/resistance levels

Some useful tips:
Start with default settings and adjust gradually
Use wider confidence bands in volatile markets
Consider prediction lines as zones rather than exact levels

Best applications of this indicator:
  • Trend continuation probability assessment
  • Potential reversal point identification
  • Risk management through confidence bands
  • Volume-based trend confirmation

predictionPrice Volume Trend (PVT)Volume IndicatorvolumeanalysisVolume Profilevolumes

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 publication is governed by House rules. You can favorite it to use it on a chart.

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