easycators

Relative Volume - VPA / VSA / Better Volume

Volume is important.

Volume is VERY important.

But all the existing methods of volume analysis and order flow analysis fall into the same trap: they're all extremely complicated, hard to learn, and difficult for the human brain to distill down to an actual, tradable signal.

The Relative Volume Gradient Paintbars indicator seeks to address this issue by reducing and simplifying concepts from Volume Price Analaysis (VPA), Volume Spread Analysis ( VSA ), and Market Profile / Volume Profile into a single indication with varying levels of intensity. Rather than adding more complex symbology and cluttering up your charts with arrows and signals and lines as many volume indicators do, relative volume intuitively takes advantage of the dimension of color, and plays to your brain's automatic recognition of color intensity to highlight areas of interest on a chart where large volumes are being traded. These areas can in turn point out levels of support and resistance , or show strength in a move, exposing the actions of larger market participants that are behind a move.

The Relative Volume indicator can calculate based on a time-segmented / time-based / bar-specific average of volume , adjusting for some of the typical spikes in volume that happen at the beginning and end of a trading day; Or it can be calculated based on any length and type of moving average of volume that is desired: simple, exponential, weighted, Wilders, price-weighted, Hull, or TEMA .

This indicator does more than just normal relative share volume . It can also do relative volume-per-range. The idea behind this setting is that when more volume is being traded but very little movement is happening, this can indicate substantial support or resistance, where a lot of trades are likely being absorbed by larger operators. You can choose your own range calculation for this setting, whether you prefer True Range, high-low range, candle body range, close to close range, or any of several other custom settings.

Moreover, the levels or thresholds at which the color intensity changes are completely user-controlled, so you can adjust them upward to tune out more noise, or downward to increase the level of sensitivity. In addition, all of the colors for each of the thresholds are completely user-controlled.

We hope to see TradingView add support for Richard Arms' CandleVolume or Equivolume before too long, as well as Tick Volume or Trade Count Volume data, all of which can add a lot of power to this method of trading.

To see a full playlist of trades taken using the relative volume indicator on other platforms like Thinkorswim, check out this Youtube playlist:
https://www.youtube.com/playlist?list=PLmUosjr6BtGANzXz-25_G6TJcRvGv3qSi

Get the Thinkorswim version here, which includes access to the TradingView version:
https://easycators.com/thinkscript/relative-volume-trades-indicators-for-thinkorswim/

BTCUSD Example
GC Example
ES Example
BAX Example
ATVI Example
Settings - General
Settings - Volume Types
Settings - MA Types
Settings - Range Types
Release Notes: Added options for dollar-based volume which can be good on longer term charts and cryptocurrency charts like BTCUSD:
  • $ Volume
  • $ Volume/Range
  • $ Volume / Range %
Release Notes: Added Candle Range + Wicks, ignoring gaps, as an option for the range calculation.
Release Notes: Fixed a negative value issue on HULL ma type.
Release Notes: Updated defaults.
Release Notes: Updated documentation and comments.
Release Notes: Updated to be more robust and to provide more of the features available in the full version on Thinkorswim available at https://easycators.com/relvol:
1. Take volume from any secondary symbol, or the currently-charted symbol.
2. Take range or spread from any secondary symbol, or the currently-charted symbol.
3. Automatically choose the number of bars per period for the time based average on long term charts (I haven't yet found a way to automatically count the number of bars per day for intraday charts, if anyone has suggestions let me know).
4. New, novel range types.
5. Additional percentage thresholds.
6. New, separate color gradient for doji candles.
7. Show volume in relative % terms or in absolute share terms.
8. Use % range or $ range mode.
9. Use share volume or $ volume mode.
10. Tooltips for every setting.
11. Settings organized into sections.
Release Notes: Fixed a small bug related to the threshold5 coloration.
Invite-only script

Access to this script is restricted to users authorized by the author and usually requires payment. You can add it to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author. Contact easycators for more information, or follow the author's instructions below.

TradingView does not suggest paying for a script and using it until you 100% trust its author and understand how the script works. In many cases you can find a good open-source alternative for free in our Public Library.

Author's instructions

To get access, please purchase the Thinkorswim version here [url=https://easycators.com/relvol]https://easycators.com/relvol[/url] and then reply to your order confirmation with your TradingView username. I will then add your username to the access list.

Want to use this script on a chart?

Warning: please read before requesting access.

Comments

I bought Relative Volume and Relative Strength indicators, both are strongly recommended.
+2 Reply
Just gotta say ... called this current move on BTCUSD live on video on my Youtube channel using the 4/29/19 Relative Volume signal, as documented on my April 30th Youtube video on my Easycators channel. This stuff really works if you know what you're looking for.
+1 Reply
Most large scale / institutional traders utilize the Zanger (cumulative) ratio and not RVOL. Many go further and use a Specific Bar Ratio that compares a specific 5m bar to the 20 day average of that exact bar/time. For these reasons, RVOL is not vastly relied on by big money.
Reply
Hi intradayvalue, I am looking for a good RVOL indicator. Can I please try the indicator you've created? It looks good, thank you.
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easycators FaisalMahboobe3
@FaisalMahboobe3, I'm new to this whole premium indicator thing on TradingView, but I have the Thinkorswim version for sale on my website, and anyone who purchases it there and shoots me an email with their TV username, I can go in an manually add them to access on TradingView as well, so you'll get both versions.
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