Volume Difference Delta Cycle Oscillator

2021년 10월 27일

Volume Difference Delta Cycle Oscillator indicator:

Using the power of my Volume Difference Indicator and standard deviations based on Bollinger Bands and more, we present this wonderful indicator with the following features:

Price Action Histogram: This is the bread and butter of this graph, if the PAH is above 0, this is considered a BULL cycle, and if below 0, this is considered a BEAR cycle. The histogram will move up and down based on the Histagram settings you set in the properties field. Be careful, we advise using default settings.

Custom Overbought & Oversold Lines:mean
These lines can be used to identify when to buy and sell the security, and help you make sense of the action of the histogram. Change the color, size, and linewidth!
These lines are what are used to perform the trades with the strategy as well, so if you change them, they will make an impact on the strategy itself.

EzSpot Background:
Do you want to turn your brain off and just trade when you you're inside an Overbought or Oversold line? Awesome! Turn on EzSpot backgrounds, and when it's green, go long, when it's red go short! Simple as that!

How it works:

By taking the Delta of the Volume Difference Indicator we're able to find the rate of change of the amount of change of volume, allowing us to see changes in volume before price changes. To add onto these, we supercharge it by taking the output of this line as the input source of bollinger bands which we use to output the %B of the Delta of the Volume Difference Indicator.

Separately, we calculate the %B of the current close to use later.

The final step is taking the second %B (which is an indication of where price lies on the curve of historical price data), and from it subtract the first %B, which allows us to visualize the standard deviation of the closing price, minus the standard deviation of Delta of the Volume Difference , which in essence allows us to see when volume changes but price does not and vice versa.

This final output is then plotted along with an over bought and over sold line, which we use to perform our trades on.

Simplified: This indicator shows the cycles of price action - volume based on the rate of the rate of volume changes based on price and the closing price.

Super Simple: Notice when volume increases but price hasn't, and vice versa with this indicator.