Buy Sell Heatmap
- Indicatori
- Shailesh Mishra
- Versione: 1.0
- Attivazioni: 5
Introduction
This is a volume based heatmap type indicator. The indicator does not repaint. Its gives a collective view of short,
intermediate and long term volume buy sell activities(bottom to top of map). This indicator should prove quite beneficial to all
those who believe in the power of volumes. As usual for any volume based indicators, a ECN broker is recommended.The indicator can be
useful for both binary and other fx trading.
Before wondering how to use it, it is probably worthwhile to notice that the indicator proves two fundamental notions about the market.
- Volume precedes the price movement. Or in other words volume is the cause and price movement is the effect. Even more simply stated the volume activity will start before the major price movement. The effect is clearly demonstrated in the screenshots and this single observation itself can make a big difference in your trading.
- Cycle breaking of markets. Its well known that markets moves in cycles. Then what makes it so difficult to trade? What this
indicator also proves is that although there is a cycle in market volume activity(traders following a regular cycle), there is
something more fundamental which breaks the transformation of volume cycles to price cycles.What can be seen is that despite of cycle
in traders activity, there is no cycle in the individual buy sell pattern. ie, a trader might be regular with his trading times but the
decisions of the trader to either go long or short has no cycle associated with it. This is the most fundamental reason of cycle breaking
of market.
- Who is in control of the market? buyers or sellers? Whether a stalled market will break to up or down will depend on
who actually is in control of the stalled market. This indicator shows a easy way to detect this (explained in screenshots)
How to use the indicator?
The indicator is quite visual and offers a at a glance information. There are many ways to use it. (For example looking at the buy sell imbalance or at weakness of either buyers or sellers, exhaustive moves etc.) The volume analysis through this indicator will provide a very important information to the regular analysis methods one would use.
Indicator's settings
- For symbol - leave empty for current chart
- What volume to use? - choose between total voulme of individual buy or sell volume
- Volume average period - Choose a suitable averaging period, when using both buy sell maps with total volume map, maybe its better
to have the buy sell map peroid double of the total volume period in order to maintain consistency.
- Averaging method - EMA, SMA,LWMA, smoothed
- Start period for volume averages - Choose start period. this will be reflected in the bottom portion of map
- End period for volume averages - Choose end period. this will be reflected in the top portion of map
- Bars to draw - no. of bars to calculate
- Bars width - width of bars
- Indicator unique ID - its helps choosing different ID if multiple instances of indicator are loaded on same chart
- Color for up - color for increasing voulme
- Color for down - color for decreasing volume