True Volume

How it works

The True Volume indicator integrates multiple asset sources to calculate a comprehensive volume representation. It uses a unique sigmoid function to normalize volume-to-price movement, creating a volume density metric that reveals market dynamics beyond traditional volume measurements.

By analyzing volume concentration and density, the indicator helps traders understand the underlying market maker activities. It can track volume across up to four different assets or exchanges, providing a more nuanced view of market liquidity and potential price manipulation.

Why it may be useful

Understanding volume density is crucial for traders seeking to interpret market movements beyond simple price action. This indicator offers deeper insights into market maker strategies, helping traders identify potential liquidity events and strategic market positioning.

By revealing the subtle dynamics of volume concentration, traders can better anticipate potential price movements, liquidation events, and market manipulation attempts. The tool provides a more sophisticated approach to volume analysis, bridging the gap between price action and underlying market structure.

When to explore it

This indicator is most effective in volatile markets like cryptocurrencies, where volume is dispersed across multiple exchanges. It works best during key market sessions, such as market openings, closings, and periods of potential market maker activity.

Traders should pay special attention to high-density volume candles during market gaps, weekends, and periods of significant price movement. The indicator is particularly useful for identifying potential stop-loss triggers, liquidation events, and strategic market maker inventory adjustments.

Keep exploring