Volumatic Variable Index Dynamic Average [BigBeluga]

4. Okt.

The Volumatic VIDYA (Variable Index Dynamic Average) indicator is a trend-following tool that calculates and visualizes both the current trend and the corresponding buy and sell pressure within each trend phase. Using the Variable Index Dynamic Average as the core smoothing technique, this indicator also plots volume levels of lows and highs based on market structure pivot points, providing traders with key insights into price and volume dynamics.

Additionally, it generates delta volume values to help traders evaluate buy-sell pressure balance during each trend, making it a powerful tool for understanding market sentiment shifts.

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🔵 IDEA

The Volumatic VIDYA indicator's core idea is to provide a dynamic, adaptive smoothing tool that identifies trends while simultaneously calculating the volume pressure behind them. The VIDYA line, based on the Variable Index Dynamic Average, adjusts according to the strength of the price movements, offering a more adaptive response to the market compared to standard moving averages.

By calculating and displaying the buy and sell volume pressure throughout each trend, the indicator provides traders with key insights into market participation. The horizontal lines drawn from the highs and lows of market structure pivots give additional clarity on support and resistance levels, backed by average volume at these points. This dual analysis of trend and volume allows traders to evaluate the strength and potential of market movements more effectively.


🔵 KEY FEATURES & USAGE

• • VIDYA Calculation:
    The Variable Index Dynamic Average (VIDYA) is a special type of moving average that adjusts dynamically to the market’s volatility and momentum. Unlike traditional moving averages that use fixed periods, VIDYA adjusts its smoothing factor based on the relative strength of the price movements, using the Chande Momentum Oscillator (CMO) to capture the magnitude of price changes. When momentum is strong, VIDYA adapts and smooths out price movements quicker, making it more responsive to rapid price changes. This makes VIDYA more adaptable to volatile markets compared to traditional moving averages such as the Simple Moving Average (SMA) or the Exponential Moving Average (EMA), which are less flexible.
    
    
    Pine Script®
    When momentum is strong, VIDYA adapts and smooths out price movements quicker, making it more responsive to rapid price changes. This makes VIDYA more adaptable to volatile markets compared to traditional moving averages
  • Triangle Trend Shift Signals:
    The indicator marks trend shifts with up and down triangles, signaling a potential change in direction. These signals appear when the price crosses above a VIDYA during an uptrend or crosses below during a downtrend.
    
  • Volume Pressure Calculation:
    The Volumatic VIDYA tracks the buy and sell pressure during each trend, calculating the cumulative volume for up and down bars. Positive delta volume occurs during uptrends due to higher buy pressure, while negative delta volume reflects higher sell pressure during downtrends. The delta is displayed in real-time on the chart, offering a quick view of volume imbalances.
    
  • Market Structure Pivot Lines with Volume Labels:
    The indicator draws horizontal lines based on market structure pivots, which are calculated using the highs and lows of price action. These lines are extended on the chart until price crosses them. The indicator also plots the average volume over a 6-bar range to provide a clearer understanding of volume dynamics at critical points.
    
  🔵 CUSTOMIZATION
  • VIDYA Length & Momentum: Control the sensitivity of the VIDYA line by adjusting the length and momentum settings, allowing traders to customize the smoothing effect to match their trading style.
    
  • Volume Pivot Detection: Set the number of bars to consider for identifying pivots, which influences the calculation of the average volume at key levels.
    
  • Band Distance: Adjust the band distance multiplier for controlling how far the upper and lower bands extend from the VIDYA line, based on the ATR (Average True Range).
    

5. Okt.

Versionshinweise

-Added color option and toggle for shadow