A volume-based trading signal that analyzes buying and selling pressure across multiple timeframes to determine market sentiment and potential trend directions.
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The signal calculates buying and selling volume by analyzing price candle positions and volume. It uses specific formulas to assign volume to bullish or bearish sides, with buying volume higher when the close is near the high and selling volume higher when the close is near the low.
The script then applies exponential moving averages (EMA) to smooth these volume calculations across three different lookback periods. By comparing the cumulative buying and selling volumes, it determines market pressure and sentiment, providing a dynamic view of market momentum.
Why it may be useful
Volume is a critical indicator of market strength and potential price movements. This signal helps traders understand the underlying market dynamics by revealing whether buying or selling pressure is dominant at different timeframes.
By providing clear visual cues like background and bar color changes, the indicator makes it easier for traders to quickly interpret market sentiment. It offers insights into potential trend confirmations, reversals, and periods of market indecision.
When to explore it
This signal works best in markets with consistent volume and clear price movements. It is particularly useful during trending markets where volume can confirm the strength of a price trend. Traders can apply it across various timeframes and financial instruments to gain insights into market dynamics.
The signal is most effective when combined with other technical analysis tools, helping traders make more informed decisions about entry and exit points. It provides valuable context about market pressure that can complement other trading strategies and risk management approaches.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
