LazyBear

Colored Volume Bars [LazyBear]

Edgar Kraut proposed this simple colored volume bars strategy for swing trading.

This is how the colors are determined:
- If today’s closing price and volume are greater than 'n' days ago, color today’s volume bar green.
- If today’s closing price is greater than 'n' days ago but volume is not, color today’s volume bar blue.
- Similarly, if today’s closing price and volume is less than 'n' days ago, color today’s volume bar orange.
- If today’s closing price is less than 'n' days ago but volume is not, color today’s volume bar red.

Buy the green or blue volume bars, use a 1% trailing stop, and stand aside on red or orange bars.

As you see, this is more for entry confirmation. I have not tested this on any instrument.

You may have to tune the lookback period for your instrument. Default is 10.

More info:
"A color-based system for short-term trading" - http://www.traders.com/Documentation/FEEDbk_Docs/2011/07/kraut.html

List of all my indicators:
Master Index: List of all my indicators

Remove from Favorite Scripts Add to Favorite Scripts
//
// @author LazyBear 
// List of all my indicators: https://www.tradingview.com/v/4IneGo8h/
//
study("Colored Volume Bars [LazyBear]", shorttitle="CVOLB_LB")
lookback=input(10)
showMA=input(false)
lengthMA=input(20)
p2=close
v2=volume
p1=p2[lookback] 
v1=v2[lookback] 
c=	iff(p2>p1 and v2>v1, green, 
	iff(p2>p1 and v2<v1, blue,
	iff(p2<p1 and v2<v1, orange,
	iff(p2<p1 and v2>v1, red, gray))))
plot(v2, style=columns, color=c)
plot(showMA?sma(v2, lengthMA):na, color=maroon)
I need this indicator on mt4 forma i really like it please help me !!
Reply
Great! So simple and easy to visualize! I love it!
Reply
How about Colored Candles with Colored Bars?
+1 Reply
LazyBear PRO QuantitativeExhaustion
Add the following 2 lines to the end of the script.

ebc=input(true, title="Enable bar colors")
barcolor(ebc?c:na)
+4 Reply
IbrahimFX LazyBear
@LazyBear, I need this indicator on mt4 forma i really like it please help me !!
+1 Reply
Yeah, this is actually extra awesome because I've been meaning to find a way to detach volume from the main chart. Saved me some time.
Reply
LazyBear PRO MarvinMartian
Thanks.

Just FYR: you can right click on any indicator name and select "Unmerge down/up" to get it on its own separate pane.
+2 Reply
Oh that's supercool and useful =) thanks.

I think I'm going to make some frankenstein charts now!
Reply
This is very useful. Thanks!

I usually hide the volume, but these colors - which are different with each scenario - add real value to the volume indicator.
Reply
Why in the world would you hide volume? I presume you mean, typically hide volume on anything EXCEPT BTC, because you can't trade an cryptocoin without knowing volume.

I do appreciate the colored volume code tho. I use volume =)
Reply
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