is VERY important.
But all the existing methods of 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 Gradient Paintbars indicator seeks to address this issue by reducing and simplifying concepts from Price Analaysis (VPA), Spread Analysis ( VSA ), and Market 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 indicators do, relative 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 , or show strength in a move, exposing the actions of larger market participants that are behind a move.
The Relative indicator can calculate based on a time-segmented / time-based / bar-specific average of , adjusting for some of the typical spikes in 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 that is desired: simple, exponential, weighted, Wilders, price-weighted, Hull, or .
This indicator does more than just normal relative share . It can also do relative volume-per-range. The idea behind this setting is that when more 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 or Trade Count 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 indicator on other platforms like Thinkorswim, check out this Youtube playlist:
Get the Thinkorswim version here, which includes access to the TradingView version:
Settings - General
Settings - Types
Settings - MA Types
Settings - Range Types
- $ Volume
- $ Volume/Range
- $ Volume / Range %