Relative Volume Bollinger Band %

13. Dez. 2025

The Relative Volume Bollinger Band % indicator is a powerful tool designed for traders seeking insights into volume, Bollinger band and relative strength dynamics. This indicator assesses the deviation of a security's trading volume relative to the Bollinger band % indicator and the RSI moving average. Together, these shed light on potential zones of interests where market shifts have a high probability of occurring.

Key Features:

Period: Tailor the indicator's sensitivity by adjusting the period of the smooth moving average and/or the period of the Bollinger band.

How it Works:

Moving Average Calculation: The script computes the simple moving average (SMA) of the relative strength over a defined period. When the higher SMA (orange line) is in the top grey zone, the security is in a zone where it has a high probability of becoming bullish. When the higher SMA is in the lower grey zone, the security is in a zone where it has a high probability of becoming bearish.
-Bollinger Band %: The script also computes the BB% which is primarily used to confirm overbought and oversold areas. When overbought, it turns white and remains white until the overbuying pressure is released indicating that the security is about to become bearish. The script indicates a bearish reversal when the BB% and RVOL bars are both red or when there are no more yellow RVOL bars, if present. When the BB% is<0 and rising, it will also appear white with yellow RVOL bars above. This is a good indication that bulls are beginning to enter buying positions. Confirmation here is indicated when the yellow RVOL bars change to green.

Relative Volume: The indicator then also normalizes the difference volume to indicate areas of high and low volatility. This shows where higher than normal volumes are being traded and can be used as a good indication of when to enter or exit a trade when the above criterions are met.

Visual Representation: The result is visually represented on the chart using columns. Bright green columns signify bullish relative volume values that are much greater than normal. Green columns signify bullish relative volume values that are significant. Red columns represent bearish values that are significant. Blue columns on the BB% indicator represent significant bullish buying in overbought areas. Red columns on the BB% indicator that are < 0 represent a bearish trend that is in an oversold area. This is there to prevent early entry into the market.

Enhancements:
Areas of Interest: Optionally, Areas of interest are represented by red, yellow and green circles on the higher SMA line, aiding in the identification of significant deviations.

12. Jan.

Versionshinweise

Relative Volume Bollinger Band % with Confidence V2
📊 Multi-Dimensional Market Analysis Tool
This advanced indicator combines volume strength, Bollinger Band statistics, RSI momentum, and DMI trend confirmation with real-time performance metrics to identify high-probability trading opportunities.

🎯 Core Features
Triple-Signal Verification
Every signal validated across three dimensions:

Volume Strength (RVOL): Bullish/Bearish volume intensity
Bollinger Band %: Statistical position within bands
RSI Momentum: Trend strength and reversals

Dynamic Confidence System
Real-time scoring based on historical performance:
Sensitivity: Buy signal accuracy
PPV: Sell signal precision
Overall Confidence: Combined reliability score

Visual Dashboard
Top-right table displays:
Performance metrics
Signal strength
Trend classification
Risk assessment color coding

📈 Key Components
Volume Analysis
Green columns: Above-average bullish volume
Red columns: Above-average bearish volume
Bright green: Exceptional volume spikes
Bollinger Band %
0-1: Normal range within bands

<0: Extreme oversold (bars below 0 line)

>1: Extreme overbought (white bars)

White columns: Critical reversal zones

Signal Zones
Upper grey zone (1.7065-2.0): Bearish reversal potential
Lower grey zone (-0.34135-0): Bullish reversal potential
Circles on SMA: High-probability interest areas

🚀 Trading Strategy
Bullish Conditions
RVOL columns turn bright green
BB% rises from oversold (<0) levels (often yellow bars)
RSI/BB% crosses above SMA
DMI shows weakening bearish momentum
Confidence score > 70%
Bearish Conditions
RVOL shows red distribution
BB% white columns at >0.85 (wait for disappearance)
RSI fails to confirm price highs
BB% crosses below DMI line
Confidence validates setup

Entry Rules
Primary: All three components align
Secondary: Two components with strong confidence
Conservative: Wait for 'B'/'S' labels
Risk: Scale positions with confidence scores

⚙️ Customization
Adjust RSI/SMA periods
Modify Bollinger Band range
Configure confidence lookback
Customize DMI smoothing
Personalize visual elements

⚠️ Risk Management
Use confidence scores to filter signals
Avoid trading against primary trend
Ensure lower RSI SMA > 0 for buys
Avoid when confidence < 60% or conflicting signals

📊 Performance Tracking
Real-time sensitivity/PPV metrics
Historical accuracy monitoring
Signal strength visualization
Trend classification system

💡 Key Advantages
Quantified Confidence: Know your statistical edge
Multi-Indicator Alignment: Triple verification system
Real-Time Metrics: Performance-based scoring
Clear Visualization: Easy signal interpretation
Risk-Aware Design: Built-in safety checks
Optimized for traders seeking statistically-validated setups with clear risk assessment.

Disclaimer: For educational purposes only. Trading involves risk. Conduct your own research before investing.