VSA Volume Indicator

29 Tem 2020

This indicator is build around volume (Ticks) and abnormalities:

The indicator consists of a
- Histogram
- A wave above the histogram
- Colored circles in the top of the indicator pane
- Colored squares below the histogram
- Colored Background

The volume histogram:
Black volume : difference between open and close is less then 0.1 pip
Blue : price movement is bullish
Red : price movement is bearish
Pink : volume is less then previous 2 bars

The Wave above the histogram
Based upon the settings:
Lookback period - standard at 10
Period for the SMA - standard at 14
Factor bottom Wave - standard at 2.2
Factor top Wave - standard at 3.5
A pink wave is plotted above the volume bars, the main driver of this wave is a relation/calculation between the factors, the lookback period and the SMA to the volume
Additional 2 black lines are plotted using the standard deviation as a basis

Colored circles in the top of the indicator pane
In the top of the indicator pane circles are plotted with the following rational
For each 1min the indicator calculates if the volume belongs to a bullish or bearish price movement and sums this for the selected time frame.
as example if the time frame is set to 60min :
for the 60x 1min candles the volume is added to bears or bulls
if of the total volume 53% or more belongs to bears or bulls a circle is plotted. The 53% can be adjusted in the settings
Red for Bears
Green for Bulls
If their is a contradiction the price candles body becomes hollow
Contradiction :
Volume for the selected timeframe is concluded to be Bullish but the price is Bearish => price candle will be hollow
Volume for the selected timeframe is concluded to be Bearish but the price is Bullish => price candle will be hollow

Colored squares below the histogram
the average volume is calculated of the 5 previous candles of that time. If this volume is higher then the actual volume and the actual volume is labelled UHV a blue square is plotted
as example on a 1hr time frame
- 17:00 volume 1.000
- the average of the last 5 times at 17:00 the volume is 1.200
- the current volume crosses the bottom of the wave => UHV
An orange square is plotted as an indication of an abnormality being UHV but the volume is below the average volume of the last 5x volume bars at that time
A red line is plotted to indicate the average of the '5 day - specific time' volume

A black square is plotted when:
- UHV condition is met : volume crosses the bottom of the wave
- 3x consecutive volume increase with 3x consecutive bullish or bearish price movement.
This as an indication that the background color as explained below is 'special'

Colored Background
If volume crosses the bottom wave, Ultra High Volume (UHV) has been detected and the background is colored.
Light red : UHV on bearish price movement
Light blue : UHV on bullish price movement

If volume increases 3 times consecutive and price is bearish 3 x consecutive then the background is colored Orange
If volume increases 3 times consecutive and price is bullish 3 x consecutive then the background is colored Dark Blue

Any feedback is welcome