Another helpful indicator is here! VOLD Ratio is calculated by the net volume of a buying candle, divided by the net volume of a sell candle.
Formula: buying net volume/selling net volume
It's a simple indicator, but don't underestimate this simplicity. It's a powerful indicator that would help you to decide whether the volume is getting interested in the direction that the market would take. So assume when the market is above the Bollinger Bands, it means that the volume is at a buying extreme, by that, we could expect the market to get back towards the mean, as there is a lot of buying demand that entered the market. How about below the Bollinger Bands? it means that the volume is at a selling extreme, we could expect that there is a lot of volume getting in toward the sellers, so we could take advantage of the opportunity to go for a long. Lastly, the Bollinger Bands would help you guys to determine the liquidity of the market, if the Bollinger Bands get smaller over time, it means there is no interest for the market to enter yet, and if the Bollinger Bands get bigger over time, it means there is interest for the market to enter in the session.
Tips & Reminder: - We shouldn't use this indicator by itself, make sure to use an Indicator that would help you guys to determine the momentum and the liquidity of the market. - The higher the timeframe, the slower this indicator would signal an entry, by that use a smaller timeframe... I suggest using a 15M chart for the execution. - Always trade in the medium-longterm direction if you want to have a high probability trade. - Be patient in your execution, it's more likely the market would go higher or lower after going in the extreme of the Bollinger Bands.
Well, that's it! Hope you guys enjoy using this indicator, let me know if there is any question or suggestion. Ciao...
Btw you guys could use this indicator as a momentum signal too, so when majority of the volume is going long, the market should be above the 50 MA line, vice versa... So use the strats base on the current market condition.
twocowz
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I really like what I am seeing here! this is great! kinda wish there was an option for smoothed line but being able to change it to 'steps' really makes it clear on the castle top and when to go long/short. This is dope !