The trend is determined by the sign of the rise of a rolling .
- 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.
The trend accumulations (TVA) indicator allows determining the current price trend while taking into account , 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 were different from ones made of rising .
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 , while the lower one is based on the cumulative mean of the waves based on declining , 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.
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.
Could you explain this a bit more? If the levels denote rising/declining volume, how can a wave reach both at the same time?