A chart analysis tool that identifies market harmony and divergence by comparing current candle sizes and volumes against their moving averages, providing visual insights into price action dynamics.
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The script calculates simple moving averages (SMAs) for both candle sizes and trading volumes over a specified lookback period. It then compares the current candle's characteristics against these averages to determine states of market harmony or divergence.
By analyzing whether candle sizes and volumes are simultaneously above or below their respective averages, the script generates visual indicators on the price chart. Traders can customize parameters like lookback period and whether to include candle wicks, allowing for flexible and personalized market analysis.
Why it may be useful
This signal provides traders with a nuanced method of understanding market sentiment beyond traditional price analysis. By highlighting periods of consensus and potential uncertainty in price action, it offers insights into market psychology and potential trend movements.
The visual approach allows traders to quickly interpret complex market dynamics, identifying potential continuation patterns or early signs of trend reversals. By integrating both volume and price size metrics, the script offers a more comprehensive view of market behavior than single-dimensional indicators.
When to explore it
The script is most effective in markets with clear directional movements and consistent trading volumes. It works best for traders seeking to understand the underlying strength of price trends and potential momentum shifts.
Ideal for active traders who want to quickly assess market sentiment, the tool is particularly useful during periods of market volatility or when evaluating potential entry and exit points. It provides valuable insights across various timeframes, especially for scalpers and day traders monitoring short-term price action.
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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.
