Trend Volume Accumulations

Deeply inspired by the Weiss wave indicator, the following indicator aims to return the accumulations of rising and declining volume of a specific trend. Positive waves are constructed using rising volume while negative waves are using declining volume .

The trend is determined by the sign of the rise of a rolling linear regression .

Settings

• Length : Period of the indicator.
  
• Src : Source of the indicator.
  
• Linearity : Allows the output of the indicator to look more linear.
  
• Mult : the multiplicative factor of both the upper and lower levels
  
• Gradient : Use a gradient as color for the waves, true by default.
  

Usages

The trend volume accumulations (TVA) indicator allows determining the current price trend while taking into account volume , with blue colors representing an uptrend and red colors representing a downtrend.

The first motivation behind this indicator was to see if movements mostly made of declining volume were different from ones made of rising volume .

Waves of low amplitude represent movements with low trading activity.

Using higher values of Linearity allows giving less importance to individual volumes values, thus returning more linear waves as a result.

The indicator includes two levels, the upper one is derived from the cumulative mean of the waves based on rising volume , while the lower one is based on the cumulative mean of the waves based on declining volume , when a wave reaches a level we can expect the current trend to reverse. You can use different values of mult to control the distance from 0 of each level.

Release Notes: Minor Changes.