Seven Color Schemes
- Plain gray.
- Different color for columns above average MA.
- Standard green and red.
- Color gradient using the relative position of MA (default mode).
A gray column in an otherwise colored scheme indicates no change in price.
- Column Mode: In this mode you can show the volume MA and mask the columns under it. The standard is an EMA because I think it better suits volume’s quick changes, but you can change it to the usual simple MA, as well as define its length.
- Relative Volume: Calculations have been kept rudimentary. Current volume is simply compared to the previous bar’s volume. In order to compensate for this, a multiple area mode also compares current volume to 5, 15, 50 and 200 periods MAs. You can choose to view only the main relative volume value. Relative volume is capped in order to prevent the loss of detail caused by wild increases. The default cap is 10, but you can define your own. Spikes that are capped show a dot at their top. A separate threshold (its default value is the standard 2) is included for relative volume; it is used to generate relative volume markers.
- Bumps (marker 1): A bump occurs when an increasing volume column is above its MA and the candle’s close is above/below the previous close.
- Double Bumps (marker 2): A double bump occurs when 2 bumps are present in the last 3 bars.
- Volume Over MA (marker 3): Triggers whenever volume is above MA. This is the noisiest of the markers.
- Relative Volume (marker 4): This event occurs when relative volume crosses the pre-defined threshold.
- You can choose to highlight the background on bumps and double bumps.
- You can define alerts on any combination of markers you configure. After defining the markers you want the alert to trigger on, make sure you are on the interval you want the alert to be monitoring at, then create the alert, select V, use the default “Configured Markers” alert condition and choose your triggering window (usually “Once Per Bar Close”). Once the alert is created, you can change the indicator's inputs with no effect on the alert.
No worthwhile price movement exists without volume. It thus makes sense to define alerts on volume if you want to monitor markets. I use the markers to define two types of alerts. For general market scanning, I use markers 2 and 4 on high time frames. When I have identified a good opportunity for entry and am waiting for confirmation, I will often setup a custom alert for that market at a shorter time interval using markers 1 and 4.
- Until we have access to delta volume information on TradingView, this indicator tries to get the most out of volume columns without using security calls at inside intervals to get more resolution on volume, because it slows things down considerably.
- The chart shows different combinations of color schemes and markers, along with my TLD indicator on the chart.
Changed the short title so it corresponds to the long name.
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.