Volume Flow Ratio

4월 15일

Volume Flow Ratio (VFR) Indicator

Overview
The Volume Flow Ratio (VFR) is a sophisticated volume analysis tool that measures current trading volume relative to the maximum volume of the previous period. Unlike traditional volume indicators that show raw volume or simple moving averages, VFR provides context by comparing current activity to recent maximum activity levels.

Core Features

1. Split Period Analysis
- Multiple Timeframe Options:
- Daily: Compares to previous day's maximum
- Weekly: Week-to-week comparison
- NYSE Weekly: Specialized for stock market trading (Monday-Friday only)
- Monthly: Month-to-month analysis
- Quarterly: Quarter-to-quarter perspective
- Yearly: Year-over-year volume comparison

2. Ratio-Based Measurement
- Displays volume as a ratio (0 to 1+) rather than raw numbers
- 1.0 represents volume equal to previous period's maximum
- Example: If previous max was 50,000 contracts:
- Current volume of 25,000 shows as 0.5
- Current volume of 75,000 shows as 1.5

3. Triple Coloring Modes
- Moving Average Based:
- Compares current ratio to its moving average
- Customizable MA period
- Green: Above MA (higher than average activity)
- Red: Below MA (lower than average activity)
- Previous Candle Comparison:
- Simple increase/decrease from previous bar
- Green: Higher than previous bar
- Red: Lower than previous bar
- Candle Color Based:
- Syncs with price action
- Green: Bullish candles (close > open)
- Red: Bearish candles (close < open)

Primary Use Cases

1. Volume Profile Analysis
- Perfect for traders who need to understand when markets are most active
- Helps identify unusual volume spikes relative to recent history
- Useful for timing entries and exits based on market participation

2. Market Activity Traders
Ideal for traders who:
- Need to identify high-liquidity periods
- Want to avoid low-volume periods
- Look for volume breakouts or divergences
- Trade based on institutional participation levels

3. Mean Reversion Traders
Helps identify:
- Overextended volume conditions (potential reversals)
- Volume exhaustion points
- Return to normal volume levels after spikes

4. Momentum Traders
Useful for:
- Confirming trend strength through volume
- Identifying potential trend exhaustion
- Validating breakouts with volume confirmation

Advantages Over Traditional Volume Indicators

1. Contextual Analysis
- Shows relative strength rather than raw numbers
- Easier to compare across different time periods
- Automatically adjusts to changing market conditions

2. Period-Specific Insights
- Respects natural market cycles (daily, weekly, monthly)
- Special handling for NYSE trading days
- Eliminates weekend noise in stock market analysis

3. Flexible Visualization
- Three distinct coloring methods for different trading styles
- Clear reference line at 1.0 for quick analysis
- Histogram style for easy pattern recognition

Best Practices

For Day Traders
- Use Daily split for intraday volume patterns
- MA coloring mode with shorter periods (5-10)
- Focus on ratios during market hours

For Swing Traders
- Weekly or NYSE Weekly splits
- Longer MA periods (15-20)
- Look for sustained volume patterns

For Position Traders
- Monthly or Quarterly splits
- Candle color mode for trend confirmation
- Focus on major volume shifts

Limitations
- Requires one full period to establish baseline
- May be less effective in extremely low volume conditions
- NYSE Weekly mode specific to stock market hours


This indicator is particularly valuable for traders who understand that volume is a crucial component of price action but need a more sophisticated way to analyze it than simple volume bars. It's especially useful for those who trade based on market participation levels and need to quickly identify whether current volume is significant relative to recent history.

4월 15일

릴리즈 노트

- Added Auto Split Mode

4월 15일

릴리즈 노트

- Upgraded to V6

4월 16일

릴리즈 노트

- Added Multiple Levels

4월 18일

릴리즈 노트

- Added Delta

4월 30일

릴리즈 노트

- Added Candle Range (TR / Open - Close)

5월 2일

릴리즈 노트

- Added Polarity Mode for Candle Ranges
- Added Divergence For Histograms

5월 10일

릴리즈 노트

- Added New Modes
- Added New Split (NYSE DAILY)

5월 10일

릴리즈 노트

- Fixed an Issue where illiquid price actions were skewing ratios

5월 18일

릴리즈 노트

- Clean-up and VPP Mode

5월 28일

릴리즈 노트

- Compatibility Fix for Tick Charts
- MA Mode now shows absorption and exhaustion

5월 30일

릴리즈 노트

- General Cleanup
- Fixed Issue where Values were null when they shouldn't

6월 6일

릴리즈 노트

- Fixed MA Coloring

6월 11일

릴리즈 노트

- Split Percentage Volume

6월 12일

릴리즈 노트

- High Res Added

6월 13일

릴리즈 노트

- Now Works on Tick Charts

6월 18일

릴리즈 노트

- Momentum Volume Colouring

6월 23일

릴리즈 노트

- Now Displays Burps

6월 24일

릴리즈 노트

- More Exhaustion Patterns

7월 7일

릴리즈 노트

- Hide Below Average Volume

7월 19일

릴리즈 노트

- Big Session Based Update

7월 19일

릴리즈 노트

- 5 Minute use Session on Auto

7월 20일

릴리즈 노트

- VFR