Averagevolume — Indicators and Strategies

Volume Metrics & Market Capitalization This Pine Script indicator provides a comparative view of volume metrics and market capitalization to help traders analyze relative volume strength in the context of a stock’s overall size. Key Features: Volume Formatting: Converts numerical values into readable units (K for thousand, M for million, B for billion, T for trillion). Volume Metrics: Displays current bar volume, cumulative daily volume, and 30-day average volume. Market Capitalization Calculation: Uses the outstanding shares multiplied by closing price to estimate market cap. Table Display: Shows all these values in an easy-to-read table in the bottom-right of the chart. How It Helps Compare Relative Volume to Market Cap Relative Volume Strength By comparing current volume and 30-day average volume, traders can quickly gauge if today’s volume is unusually high or low. If daily volume exceeds the 30-day average, it suggests increased market interest in the stock. Market Cap Context Market cap provides a reference for whether a stock is large-cap, mid-cap, or small-cap, influencing how volume should be interpreted. A high volume surge in a low market cap stock may indicate stronger momentum compared to the same volume change in a large-cap stock. Liquidity and Volatility Signals Comparing volume to market cap helps determine liquidity—stocks with low market cap but high volume may be more volatile. Example: A small-cap stock with $50M market cap trading $20M daily volume is seeing 40% turnover, a significant indicator of strong movement. Practical Use Case Day Traders: Spot stocks experiencing unusual volume surges relative to their market cap, identifying potential breakout or momentum plays. Swing Traders: Assess if a stock is trading at above-average volume levels, confirming strength in trends. Investors: Understand liquidity and potential institutional interest in stocks, as larger players typically trade in high market-cap names with sustained volume. This indicator is a quick-glance tool for identifying high-volume stocks relative to their size, helping traders make more informed decisions on potential opportunities. 🚀

Split Volume The Split Volume indicator displays 'Upwards' and 'Downwards' volume with an additional method for distributing 'split' candle volume. A 'split' candle is a candle whose direction is...'Split'...since the open and close are equal. (Ex. Doji) Upwards and Downwards Volume is tracked by comparing the Open and Closes of the Lower Timeframes. If the Close is Greater-than the Open, we track the Volume as 'Upwards' Volume. If the Close is Less-than the Open, we track the Volume as 'Downwards' Volume. If the Close and Open are Equal, we assume that the Volume is an even split 50/50, and track it as such. The indicator pulls data from lower timeframes to achieve more granular Open,Close,& Volume Data Specifically: <5m Timeframe: 1 Second LTF <60m Timeframe: 5 Second LTF <1D Timeframe: 1 Minute LTF >1D Timeframe: 60m LTF We have also included some nice-to-have features 50% Volume Line: This line splits each columns in half, this is used as quick reference to see exactly which side the volume is on. High Volume Candle Identification: We are detecting bars with high relative volume and coloring them on the upper chart for use as important zones. Status Line Readouts: The Status line for this indicator is formatted for simple reading. It Reads(Left-to-Right):Total Volume, Downwards Volume, 50% Value, Upwards Volume

Average Volume Profile Average Volume Profile is an abstract based on a user suggestion. The information displayed could be summed up as a volume profile divided by a market profile. This indicator is a profile which displays the average volume of an area (of price). It also calculates and displays the highest average volume point (HAV) and the relating value zones (calculated in the similar fashion to a volume profile). Most of the code is directly from my "Volume/Market Profile" Indicator I am not entirely sure of how to make use of the information displayed in this indicator or how useful it is. However, I have added some things I figured would be useful to comprehend this information, such as: - Read-out for highest average volume - Read-out for current price average volume - Read-out for current candle distributed volume (labeled as: "Vol") - Floating line to visualize the current distributed volume in relation to the rest of the profile. - Color changing labels for when the current distributed volume is higher than the current price avg volume. Enjoy!

Relative Volume (rVol), Better Volume, Average Volume Comparison This is the best version of relative volume you can find a claim which is based on the logical soundness of its calculation. I have amalgamated various volume analysis into one synergistic script. I wasn't going to opensource it. But, as one of the lucky few winners of TradingClue 2. I felt obligated to give something back to the community. Relative volume traditionally compares current volume to prior bar volume or SMA of volume. This has drawbacks. The question of relative volume is "Volume relative to what?" In the traditional scripts you'll find it displays current volume relative to the last number of bars. But, is that the best way to compare volume. On a daily chart, possibly. On a daily chart this can work because your units of time are uniform. Each day represents a full cycle of volume. However, on an intraday chart? Not so much. Example: If you have a lookback of 9 on an hourly chart in a 24 hour market, you are then comparing the average volume from Midnight - 9 AM to the 9 AM volume. What do you think you'll find? Well at 9:30 when NY exchanges open the volume should be consistently and predictably higher. But though rVol is high relative to the lookback period, its actually just average or maybe even below average compared to prior NY session opens. But prior NY session opens are not included in the lookback and thus ignored. This problem is the most visibly noticed when looking at the volume on a CME futures chart or some equivalent. In a 24 hour market, such as crypto, there are website's like skew can show you the volume disparity from time of day. This led me to believe that the traditional rVol calculation was insufficient. A better way to calculate it would be to compare the 9:30 am 30m bar today to the last week's worth of 9:30 am 30m bars. Then I could know whether today's volume at 9:30 am today is high or low based on prior 9:30 am bars. This seems to be a superior method on an intraday basis and is clearly superior in markets with irregular volume This led me to other problems, such as markets that are open for less than 24 hours and holiday hours on traditional market exchanges. How can I know that the script is accurately looking at the correct prior relevant bars. I've created and/or adapted solutions to all those problems and these calculations and code snippets thus have value that extend beyond this rVol script for other pinecoders. The Script This rVol script looks back at the bars of the same time period on the viewing timeframe. So, as we said, the last 9:30 bars. Averages those, then divides the: . The result is a percentage expressed as x.xxx. Thus 1.0 mean current volume is equal to average volume. Below 1.0 is below the average and above 1.0 is above the average. This information can be viewed on its own. But there are more levels of analysis added to it. Above the bars are signals that correlate to the "Better Volume Indicator" developed by, I believe, the folks at emini-watch and originally adapted to pinescript by LazyBear. The interpretation of these symbols are in a table on the right of the indicator. The volume bars can also be colored. The color is defined by the relationship between the average of the rVol outputs and the current volume. The "Average rVol" so to speak. The color coding is also defined by a legend in the table on the right. These can be researched by you to determine how to best interpret these signals. I originally got these ideas and solid details on how to use the analysis from a fellow out there, PlanTheTrade. I hope you find some value in the code and in the information that the indicator presents. And I'd like to thank the TradingView team for producing the most innovative and user friendly charting package on the market. (p.s. Better Volume is provides better information with a longer lookback value than the default imo) Credit for certain code sections and ideas is due to: LazyBear - Better Volume Grimmolf (From GitHub) - Logic for Loop rVol R4Rocket - The idea for my rVol 1 calculation And I can't find the guy who had the idea for the multiples of volume to the average. Tag him if you know him Final Note: I'd like to leave a couple of clues of my own for fellow seekers of trading infamy. Indicators: indicators are like anemometers (The things that measure windspeed). People talk bad about them all the time because they're "lagging." Well, you can't tell what the windspeed is unless the wind is blowing. anemometers are lagging indicators of wind. But forecasters still rely on them. You would use an indicator, which I would define as a instrument of measure, to tell you the windspeed of the markets. Conversely, when people talk positively about indicators they say "This one is great and this one is terrible." This is like a farmer saying "Shovels are great, but rakes are horrible." There are certain tools that have certain functions and every good tool has a purpose for a specific job. So the next time someone shares their opinion with you about indicators. Just smile and nod, realizing one day they'll learn... hopefully before they go broke. How to forecast: Prediction is accomplished by analyzing the behavior of instruments of measure to aggregate data (using your anemometer). The data is then assembled into a predictive model based on the measurements observed (a trading system). That predictive model is tested against reality for it's veracity (backtesting). If the model is predictive, you can optimize your decision making by creating parameter sets around the prediction that are synergistic with the implications of the prediction (risk, stop loss, target, scaling, pyramiding etc). <3

Volume Average Cross - VAC Chart Volume Average Cross Chart Indicator This indicator plots signals from two different volume averages when they cross on the chart. It does not show the default volume bars, to see them please go to my VAC Default Indicator. This is VAC Chart. If you want to see the crosses on your volume bars and not on the chart please go to my VAC Default Indicator. Rules: Fast Volume Period always has to be lower than the Slow Volume Period to trigger correct signals. Inputs: -> Fast Volume Average Period -> Slow Volume Average Period -> Option to enable/disable the cross-signals