OPEN-SOURCE SCRIPT

VLM Spike

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Feeling tired and just took a week break away from the busy and tough life. 🎊

Nothing special to mention today, just post a script I coded long time ago when I studied volume.

People always underestimate the importance of volume while drawing tons of trendlines on their charts .

A volume spike is a key to trading because it can tell us three messages, including the top, the bottom and the breakout.

Using Bollinger Band as a proxy, we can always spot two scenarios.

One ,when volume is declining below 1/2 SD of its average, price tends to move in one direction. But unusual volume above 1/2 SD of its average can reverse the original trend.

Hope u find it helpful and don't forget to follow my little account!!😄

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