fract

Buying & Selling Pressure

fract Aktualisiert   
Buying and selling pressure is a volatility indicator which denotes the balance between buyers and sellers inside candlestick.
You set the length to average it just like ATR. But This offers further break down of participants of the market.
Pretty much at any condition of the market the indicator can filter out interesting details to make trading decisions faster or confirm them.

So keep it simple we have two lines
🟢 Green → buying pressure
🔴 Red → selling pressure

If green is rising → Price most likely will grow
If green is rising and red is falling → Price will grow at higher probability
If red is rising → Price most likely will fall
If red is rising and green is falling → Price will fall at higher probability

When they both grow or fall → wait till one of them goes opposite way.

╳ Crossings can indicate turning points for bigger price swings.
Technically by very act of intersecting means that Buying and Selling Pressure are equal.

Can be used for Demand/Supply analysis and evaluate the support/resistance levels.
Versionshinweise:
Fixed
Versionshinweise:
Added background colors depending on relationship between average BP and SP
Versionshinweise:
UPDATE:
Now when Buying Pressure falls, it turns 🔵 blue.
Selling Pressure turns 🟠 orange once it falls accordingly.
It is important to document these crucial changes of bullish and bearish incentive of the market.
Versionshinweise:
Now BSP is based on candle's actual body without excluding wick measurement out of formula.
It was very sensitive to market noises, giving us confusing signals. Eliminating wicks metrics contributed to more accurate capture of bullish and bearish market and their timing.
For example capture of covid19 lockdown 📉 bearish wave.
Versionshinweise:
Thanks to @bipinkaswala for noticing bug.
Versionshinweise:
Summarized formula of BP and SP. Also enabled consideration of wicks. Was a bad idea taking them down out of formula. Added tracking by def.
Versionshinweise:
Added switch for considering wicks in the formula. Some people thought it was a good idea using the indicator without wicks to eliminate noises in certain conditions of the market.
Versionshinweise:
Added:
  • Ability to change the type of MA
  • Removed maxval limits
  • Separate fills coloring different stages of the market
Versionshinweise:
Added:
  • ATR for a better visualization of candle proportions
  • Ability to change ATR Length

For example, default settings of BSP together with ATR changed to 200 would look like:
Versionshinweise:
Minor bug fix
Versionshinweise:
Added averaging of Upper Wick and Lower Wick (UW & LW)
With SAME arguments for all:
  • Value of ATR will always be more than BP OR SP because buying and selling pressure are parts of a bar
  • Upper and Lower Wicks (LW and UW) will always be smaller their correspondent BP and SP

Meaning that if ATR (twice the default argument of BSP averaging) can represent mathematical max of given Volatility.
Meanwhile darkened Lower & Upper Wicks zone
suppose to represent Volatility floor.
Made them all black because their crossings aren't as significant as their levels. However, we would still consider that in this instance the measurement of Lower Wick is above Higher Wick
Therefore, we can observe how Buying & Selling Pressure emerge from Upper & Lower Wicks to ATR levels
BSP & ULW are averaged equally. Ability to change ATR is also present.

Also added another averaging type called "SWMA"
Versionshinweise:
Update:
Added other components of Candle Metrics to complete Volatility picture.

1. Average Wick Range (grey step line):
2. Total Wicks Range (black step line)
3. Average Body Range (black line)
4. Dots indicate metrics of Higher Wick
5. Crosses (+) indicate metrics of Lower Wick
Open-source Skript

Ganz im Spirit von TradingView hat der Autor dieses Skripts es als Open-Source veröffentlicht, damit Trader es besser verstehen und überprüfen können. Herzlichen Glückwunsch an den Autor! Sie können es kostenlos verwenden, aber die Wiederverwendung dieses Codes in einer Veröffentlichung unterliegt den Hausregeln. Sie können es als Favoriten auswählen, um es in einem Chart zu verwenden.

Haftungsausschluss

Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.

Möchten Sie dieses Skript auf einem Chart verwenden?