[blackcat] L2 Handicap Volume for Stocks

2022년 11월 25일

Level 2
Background
Handicap volume is a way to understand market logic.

Function

I have studied many classic trading textbooks about volume. Most textbooks tell me that the most authentic indicator in the world is the trading volume, because other things can be faked, but the trading volume is real, and the real money is there, so it cannot be faked! But now, almost everyone knows that if you place an order there, and then eat it yourself, and the volume comes out, it does not reflect the real long-short will of the market.
So why is volume still considered the most important technical indicator by many successful traders in the stock market? Here is to distinguish from the duration and intensity of the trading volume, the actions of the main whales. It's like in the sea, small fish and shrimp can only create ripples, while whales can set off huge waves. When you need to fish, you must go to the sea with both ripples and huge waves. If the volume of a stock or a currency can fluctuate evenly or pulse ECG, the price will move unnaturally, and it will also be small fluctuations or ECG. This corresponds to a group of small fish and shrimp retail investors gathering, or stocks or altcoins with high control of whales, these two cannot participate. Otherwise, either your money will be wasted there, or you will be taken over by the unscrupulous project party with high control area.

This technical indicator is the handicap trading volume and turnover rate indicators. You can see clearly the type of funds operating on this target in a suitable time period, and thus determine whether this target is in line with your trading style and whether you want to participate Among them and so on.

My technical indicator is mainly to clearly see whether there are main whales participating in the stock by distinguishing the trading volume and the enlarged turnover rate. Its main purpose is to judge the character of the stock, that is, the nature of the stock. And in the yellow and purple positions with high turnover rates, it prompts the behavior of the main whales. This is just a reminder. As for whether the main whale will attack or retreat, you need to conduct an in-depth analysis based on market logic. This analysis data has gone beyond the scope of ordinary candle chart analysis, and requires additional dimensions of information to assist judgment.

Remarks
Feedbacks are appreciated.

릴리즈 노트

OVERVIEW The **L2 Handicap Volume** indicator analyzes stock market trading behavior by calculating various volume-based metrics using Level 2 data principles. 📈 This advanced tool helps traders identify buying and selling pressure patterns through sophisticated calculations involving price ranges and trade volumes. By comparing bid/ask imbalances across multiple timeframes, it provides insights into potential market movements and liquidity conditions. 💡 The indicator includes visual representations of key metrics like handicap buy/sell volumes, turnover rates, and cumulative differences, making it easier to spot trends and opportunities.
FEATURES
• Calculates handicap buy volume, sell volume, and their differences 📊
• Computes turnover rate based on outstanding shares and price action 🔄
• Tracks total buy-sell difference over a 60-bar period ⏳
• Uses Level 2-style analysis adapted for stocks 🎯
• Provides customizable visualization options 🎨

HOW TO USE

Add the indicator to your chart 👉 Add to Chart
Customize appearance settings: • Adjust column width and transparency ✂️ • Modify line styles and colors 🎨 • Change the lookback period for calculations ⏱️
Analyze the plotted indicators: • Green columns: Handicap Buy Volume → Positive indicates buying pressure • Red columns: Handicap Sell Volume → Negative indicates selling pressure • White line: Buy-Sell Difference → Direction shows overall sentiment • Purple line: Turnover Rate → Higher values indicate more active trading • Yellow line: Total Buy-Sell Difference → Cumulative trend analysis
LIMITATIONS
• Requires sufficient historical data for accurate calculations 🕒
• May produce misleading signals during periods of low volatility 🌫️
• Best suited for analyzing stocks with significant daily volume 💼
• Performance may vary depending on available financial data sources 🔍

NOTES
This indicator uses the latest version of Pine Script (v5) and requires access to financial data providers for outstanding share information. For optimal performance, apply this indicator to charts with at least 5000 bars of history. 🖥️

THANKS
Special thanks to the TradingView community for providing inspiration and feedback throughout the development process. 🙏