This indicator should be more accurate than other indicators in its class (including MFI, CMF, ADL, and OBV) for measuring buy/sell pressure, identifying trend change through divergence and calculating Accumulation/Distribution (A/D) level (I will explain why in a separate TA).
This indicator is based on my previous indicator "Accumulation/Distribution Volume". It does not include the volume bars. The volume effect is adjustable as well.
Application: - Buy/sell pressure: above 0 shows buy pressure, below 0 shows sell pressure. - Divergence: as shown in the chart above, this indicator diverged from BTC price during swing lows and highs in the shown period. - Accumulation/distribution: set Aggregation=Sum, Volume Exponent=10 and uncheck Price Factor.
Recommendations: - Never use SMA - Use larger length EMA for confirmation of divergence or buy/sell pressure (EMA 27 is equal to RMA 14 which is used in RSI). . A/D mode is not recommended for hidden divergence.
My Setup: - I use one instances of this indicator with default settings for buy/sell pressure - A second instance for A/D level overlaid on the main chart - One instance of "Accumulation/Distribution Volume" as a replacement for volume indicator
This indicator can also replicate Accumulation/Distribution Line (improved by True Range), On Balance Volume, and Price Volume Trend. Read more details on the description of the previous indicator:
I will publish a TA about correctly measuring divergence and using these indicators.
Please report any problems you find in the comments.
Release Notes
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Volume exponent is replaced by a binary enable/disable option. The reason was that for some instruments that have volume below 1 unit, it has a heightening effect which could lead to confusion. I personally am using the older version with adjustable volume exponent. Previous version is available at pastebin.com/JPWvDKCU
- Simplified the indicator by removing replication of other indicators. Use ADV indicator if you want all the geeky features - Using Smoothed MA (same as the MA used in RSI)
You got talent mate, thanks for sharing with the world (Y)
cI8DH
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@cryptogast33, your welcome my friend. I hope you find it useful :)
CryptoSwindle
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@hkh222, I haven't had time yet, but will have certainly in the vacation I'm taking, so will have take a look at the source code and backtesting when I'm in the pool :P
Looking very promising so far!
cI8DH
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@cryptogast33, Great. Have fun in your vacation. I will hopefully publish a TA about these indicators sets explaining why they should work better.
CryptoSwindle
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@hkh222, Thanks mate, you too! Nice, looking forward for your thesis (Y)
johnsonhello
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Thank you for making and sharing this indicator. It has been a blessing and instrumental in my chart analysis. Truly appreciated!
Heroturk
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👏👏👏
jdelcu07
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I love this indicator, thank you!!
MuanSimte
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this is very good. I used is in weekly chart and its very reliable. thank you for the share.
rngpmx
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Is this possible to have this indicator for ninjatrader?