Impulse Volume Oscillator [Alpha Extract]

Impulse Volume Oscillator

A sophisticated indicator designed to identify market impulse moves and volume-based momentum shifts, helping traders capture significant price movements with precision.

Combining price deviations with volume analysis, this oscillator dynamically measures market strength and weakness, providing clear signals for potential trend continuations and reversals.

🔶 Volume-Adjusted Normalization

Utilizes a unique normalization technique that incorporates volume impact to enhance signal quality. This approach ensures the indicator responds more strongly to high-volume price movements while filtering out low-volume noise.

vol_ratio = ta.rsi(volume, 14) / 50  
vol_factor = vol_impact > 0 ? 1 + (vol_ratio - 1) * vol_impact : 1
raw_normalized = dev / (ta.stdev(source, bars) * mult)
vol_adjusted = raw_normalized * vol_factor
normalized = ta.sma(vol_adjusted, smooth)

🔶 Adaptive Regime Detection

Incorporates threshold-based regime identification that clearly distinguishes between trending and mean-reverting market conditions. The customizable threshold system allows traders to adapt to different market volatilities and timeframes.

🔶 Customizable Parameters

Fine-tune detection sensitivity with adjustable inputs for lookback period, standard deviation multiplier, volume impact, and signal smoothing. These parameters enable traders to optimize the indicator for various trading styles and market conditions.

❓How It Works

🔶 Impulse Calculation

The oscillator measures price deviation from a moving average baseline, normalized by standard deviation, and then adjusts the signal based on relative volume strength. This creates a responsive yet stable indicator that accurately reflects market momentum.

// Calculate the basis using the selected MA
basis = get_ma(source, bars)

// Calculate the normalized value with volume impact
dev = source - basis

🔶 Dynamic Visualization

The histogram changes color based on signal strength, providing instant visual cues about market conditions. Green bars indicate positive momentum while red bars represent negative momentum, with color intensity reflecting signal strength.

🔶 Trend Confirmation

Built-in trend direction analysis provides confluence with the primary signal, helping traders distinguish between counter-trend bounces and genuine trend reversals. This dual-confirmation approach significantly reduces false signals.

🔶 Visual Alerts & Boundary Tracking

Monitors signal extremes and dynamically adjusts visualization transparency based on signal strength. The indicator highlights particularly strong impulse moves with background shading, making potential trading opportunities immediately apparent.

🔶 Custom Candle Coloring

Optional candle coloring applies the same color logic as the histogram directly to price candles, providing a unified visual framework that helps traders correlate indicator signals with price action.

🔶 Momentum Shift Detection

Automatically identifies important zero-line crossovers that often signify the beginning of new impulse moves. These transition points frequently offer favorable risk/reward entry opportunities.

🔶 Snapshot samples

• 1 Week
  

• 1 Day
  

• 15 Min
  

🔶 Why Choose AE - Impulse Volume Oscillator?

This indicator provides a comprehensive approach to identifying significant market moves by combining volume analysis with price momentum. By offering clear visual signals for both trend continuation and reversal scenarios, it empowers traders to make more informed decisions across various market conditions and timeframes.