The script, High-Resolution Volume-Price Pressure Indicator with Wavelets, utilizes wavelet transforms and high-resolution data to analyze market pressure based on volume and price dynamics. The approach combines volume data from smaller timeframes (1 second) with non-linear transformation techniques to generate a refined view of market conditions. Here’s a detailed breakdown of how it works:
Key Components: Wavelet Transform:
A wavelet function is applied to the price and volume data to capture patterns over a set time period. This technique helps identify underlying structures in the data that might be missed with traditional moving averages. High-Resolution Data:
The indicator fetches 1-second high-resolution data for price movements and volume. This allows the strategy to capture granular price and volume changes, crucial for short-term trading decisions. Normalized Difference:
The script calculates the normalized difference in price and volume data. By comparing changes over the selected length, it standardizes these movements to help detect sudden shifts in market pressure. Sigmoid Transformation:
After combining the price and volume wavelet data, a sigmoid function is applied to smooth out the resulting values. This non-linear transformation helps highlight significant moves while filtering out minor fluctuations. Volume-Price Pressure:
The up and down volume differences, together with price movements, are combined to create a "Volume-Price Pressure Score." The final indicator reflects the pressure exerted on the market by both buyers and sellers. Indicator Plot: The final transformed score is plotted, showing how price and volume dynamics, combined through wavelet transformation, interact. The indicator can be used to identify potential market turning points or pressure buildups based on volume and price movement patterns.
This approach is well-suited for traders looking for advanced signal detection based on high-frequency data and can provide insight into areas where typical indicators may lag or overlook short-term volatility.
진정한 TradingView 정신에 따라, 이 스크립트의 저자는 트레이더들이 이해하고 검증할 수 있도록 오픈 소스로 공개했습니다. 저자에게 박수를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 출판물에서 이 코드를 재사용하는 것은 하우스 룰에 의해 관리됩니다. 님은 즐겨찾기로 이 스크립트를 차트에서 쓸 수 있습니다.