Most of the time traders are confused about if the price movements were supported by VOLUME . This indicator colors the bars into volume weighted signals...
When prices go down bars are red and contraversely when up, bars are green. Additionally we have two more colors for each situation:
PRICE BARS ARE:
DARK RED when prices go down and VOLUME is bigger than 150% of its (default 21 day) average, that indicates us price action is supported by a strong BEARISH VOLUME
RED when prices go down and VOLUME is BETWEEN 50% AND 150% of its (default 21 day) average, at this situation we can think that volume is neither strong nor weak
ORANGE when prices go down and VOLUME is just less than 50% of its (default 21 day) average, so the volume is weak and doesn't support the price action much
DARK GREEN when prices go UP and VOLUME bigger than 150% of its (default 21 day) average, that indicates us price action is supported by a strong BULLISH VOLUME
GREEN when prices go UP and VOLUME is BETWEEN 50% AND 150% of its (default 21 day) average, at this situation we can think that volume is neither strong nor weak
LIGHT GREEN when prices go UP and VOLUME is just less than 50% of its (default 21 day) average, so the volume is weak and doesn't support the price action much
21 day Simple Moving Average used as default value which can be changed in the settings menu,
21 day is considered as a month for STOCK Markets, it would be more accurate to set the value to 30 for CRYPTO CURRENCIES
Great script, trading crypto would you think 15 mins or 10 mins is more accurate?
langki05
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Awesome
Cashtagpat
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Hello thank you so much for this script it is the most amazing one! So accurate in determining bull bear pressure with volume easy to read and understand. I love you.
Is there anyway to modify the script in order to include alerts for when the candle changes color? For instance an alert To when the candle turns dark Red or dark green?
saolof
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Quick modification I made to be able to color red/green based on last close instead:
study("Volume Based Coloured Bars", title="VCB", overlay=true)
length=input(21, "length", minval=1)
avrg=sma(volume,length)
style = input(title="color based on:", defval="Open" ,options =["Last close","Open"])
isred = style == "Last close" ? change(close) < 0 : close < open
isgreen = not isred
highvolume = volume > avrg*1.5
lowvolume = volume < avrg/1.5
mediumvolume = not (highvolume or lowvolume)
vold1 = highvolume and isred
vold2 = mediumvolume and isred
vold3 = lowvolume and isred
volu1 = highvolume and isgreen
volu2 = mediumvolume and isgreen
volu3 = lowvolume and isgreen
@saolof, Can you please check the line style=input(....). Getting syntax error. Can you please also explain, what is the modification you are trying to make, so that I can understand the concept. [ I am a beginner level trader.]
saolof
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@lapoghsrik, Should have ["Last close", "Open"] as the options in the input. It's just so you can choose between having red or green depending on Close > Open or depending on Close > Close[1]