A custom indicator tracking the total value-weighted volume of WIG20 stocks, highlighting significant trading activity with color-coded visualization based on statistical thresholds.
Explore complementary indicator rolesHow it works
The indicator calculates value-weighted volume by multiplying each stock's trading volume with its average price across the WIG20 index. It aggregates these values to create a total monetary trading volume that provides a more comprehensive view of market activity beyond raw share numbers.
Using a statistical approach, the script computes a rolling mean and standard deviation of the total value-weighted volume. It then establishes a 3-sigma threshold to identify statistically significant trading volume spikes, allowing traders to recognize unusual market movements.
Why it may be useful
This indicator transforms raw volume data into a more meaningful metric by incorporating price information, giving traders deeper insights into market dynamics. By converting volume into monetary terms, it provides a weighted representation of trading activity that gives more significance to higher-priced stocks.
The color-coded visualization makes it easy to quickly identify periods of exceptional trading volume and understand their market context. Traders can rapidly distinguish between normal and extraordinary trading events, with green and red colors signaling bullish or bearish volume spikes.
When to explore it
The value-weighted volume indicator is most effective during periods of market uncertainty or potential trend changes. It can help traders identify significant market events, such as news-driven moves or potential trend reversals, by highlighting unusual trading activity across the WIG20 index.
Traders should pay special attention to the color-coded signals, particularly when the volume exceeds the 3-sigma threshold. These moments can indicate important market sentiment shifts, potential entry or exit points, and periods of heightened market interest that might warrant closer investigation.
Keep exploring
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.
