Paradigm Trades_VPA Swing Indicator

2023년 3월 15일

The indicator is designed to identify specific patterns in price and volume movements that can signal potential trading opportunities. It does this by calculating several conditions based on the current bar's price and volume movements.

The code defines five conditions: Narrow Spread Up Bar, Wide Spread Down Bar, No Demand Bar, No Selling Bar, and Churning. These conditions are then plotted on the chart using specific shapes and colors. The code also includes alert conditions for each of the signals, which can be used to generate alerts for traders when a particular pattern is identified.

The VPA Swing Indicator can be used as part of a swing trading strategy to identify potential buy or sell signals. For example, a Narrow Spread Up Bar may indicate bullish momentum, while a Wide Spread Down Bar may indicate bearish momentum. Traders can use these signals to make informed trading decisions and manage their risk accordingly.

Legend:
Spread Up Bar: This is a bullish bar with a small spread, indicating a lack of selling pressure and strong buying activity.

Wide Spread Down Bar: This is a bearish bar with a large spread, indicating strong selling pressure and weak buying activity.

No Demand Bar: This is a bearish bar with a small spread and low volume, indicating a lack of buying interest and the smart money selling off their positions.

No Selling Bar: This is a bullish bar with a small spread and low volume, indicating a lack of selling interest and the smart money buying up positions.

Churning: This is a sideways market with narrow spread bars and low volume, indicating the smart money is distributing shares to the retail traders.

2023년 3월 29일

릴리즈 노트

The updated code is a Volume Price Analysis (VPA) Swing Indicator. It aims to identify Volume Climax Up and Volume Climax Down bars by using a simple moving average of volume over a 20-bar period.

The script has been updated to use only two signals, which are Volume Climax Up and Volume Climax Down. This is a significant difference from the initial code, which had five signals for identifying different types of bars based on their spread, volume, and open/close relationship.

The new code uses volume as the primary indicator to determine the strength of the buying and selling pressure in the market. A Volume Climax Up bar occurs when the volume is greater than the 20-bar simple moving average, and the closing price is above the opening price. Similarly, a Volume Climax Down bar occurs when the volume is greater than the 20-bar simple moving average, and the closing price is below the opening price.

The script plots signals on the chart in the form of upward and downward triangles below and above the bars, respectively. The script also sets up alert conditions to notify the user when a Volume Climax Up or Volume Climax Down bar has occurred.

Overall, the updated code provides a simple and effective way to identify the most significant buying and selling pressure in the market, allowing traders to make informed decisions about their trading strategies.