Volume Storm Trend [ChartPrime]

20 May

The Volume Storm Trend (VST) indicator is a robust tool for traders looking to analyze volume momentum and trend strength in the market. By incorporating key volume-based calculations and dynamic visualizations, VST provides clear insights into market conditions.

Components:

• Calculating the median of the source data.
  
• Volume Power Calculation: The indicator calculates the "heat power" and "cold power" by applying an Exponential Moving Average (EMA) to the median of volume data arrays.
  
  
  Pine Script®
  Visualization:
  • Gradient Colors: The indicator uses gradient colors to visualize bullish volume and bearish volume powers, providing a clear contrast between rising and falling trends.
    
  • Bars Fill Color: The color fill between high and low prices changes based on whether the heat power is greater than the cold power.
    
  • Bottom Line: A zero line with changing colors based on the dominance of heat or cold power.
    
  • Weather Symbols: Visual indicators ("☀" for hot weather and "❄" for cold weather) appear on the chart when the heat and cold powers crossover, helping traders quickly identify trend changes.
    
  Inputs:
  • Source: The input data source, typically the closing price.
    
  • Median Length: The period length for calculating the median of the source. Default is 40.
    
  • Volume Length: The period length for calculating the average volume. Default is 3.
    
  • Show Weather: A toggle to display weather symbols on the chart. Default is false.
    
  • Temperature Type: Allows users to choose between Celsius (°C) and Fahrenheit (°F) for temperature display.
    
  Show Weather Function:
  The `Show Weather?` function enhances the VST indicator by displaying weather symbols ("☀" for hot and "❄" for cold) when there are significant crossovers between heat power and cold power. This feature adds a visual cue for potential market tops and bottoms. When the market heats to a high temperature, it often indicates a potential top, signaling traders to consider exiting long positions or preparing for a reversal.
  Additional Features:
  • Dynamic Table Display: A table displays the current "temperature" on the chart, indicating market heat based on the calculated heat and cold powers.
    
  The Volume Storm Trend indicator is a powerful tool for traders
  looking to enhance their market analysis with volume and momentum insights, providing a clear and visually appealing representation of key market dynamics.