volumeMA_v1
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This tool is designed to provide traders with a clear visual representation of market trading activity, specifically focusing on how the volume of trades fluctuates over time. By combining raw data with smoothing techniques, it helps identify trends in market participation rather than just looking at individual price movements.
Core Functionality
The script monitors the "Volume"—the total amount of assets traded—and processes it through a moving average. This means that instead of seeing erratic, jumping spikes in volume, you see a smoothed line that represents the general "flow" of the market.
You can choose between four different types of mathematical smoothing (Moving Averages) depending on how responsive you want the tool to be:
- Simple Moving Average (SMA): Provides a steady, balanced average of volume over a specific period.
- Exponential Moving Average (EMA): Places more importance on recent data, making it react faster to sudden changes in market interest.
- Smoothed Moving Average (SMMA): A gentler version that filters out minor "noise" for a very fluid trend line.
- Linear Weighted Moving Average (LWMA): Gradually increases the weight of the most recent volume data, providing a balance between speed and smoothness.
Visual Indicators
The script translates these calculations into three distinct visual elements on your chart:
-
Dynamic Color Coding (The Histogram): The tool compares the current volume to the previous period's volume. It uses a two-tone histogram to show the direction of volume change:
- Red Bars: Appear when the volume is decreasing compared to the previous step.
- Green Bars: Appear when the volume is increasing compared to the previous step.
- This allows you to instantly see if market activity is "speeding up" or "slowing down."
-
The Trend Line (White): Overlaid on the bars is a continuous white line representing the selected Moving Average. This acts as a benchmark; when the bars are significantly higher or lower than this line, it indicates an expansion or contraction in market activity relative to the recent average.
Summary for Traders
Essentially, this script tells you how "active" the market is. By watching the relationship between the colored histogram (immediate change) and the white line (the long-term trend), traders can better understand whether a price move is being backed by significant trading volume or if the market is becoming exhausted.
/*-----------------------------+
| |
| Shared by www.Aptrafx.com |
| |
+------------------------------*/
//+------------------------------------------------------------------+
//| Volume with Custom Moving Average.mq4 |
//| Copyright © 2004, MetaQuotes Software Corp. |
//| http://www.metaquotes.net/ |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2004, MetaQuotes Software Corp. Modified RonT"
#property link "http://www.metaquotes.net/"
#property indicator_separate_window
#property indicator_buffers 3
#property indicator_color1 Red
#property indicator_color2 Green
#property indicator_color3 White
// User input
extern int MA_Period=13;
extern int MA_Shift=0;
extern int MA_Method=0;
// Buffers
double VolBuffer1[]; // value down
double VolBuffer2[]; // value up
double VolBuffer3[]; // moving average
//----
int ExtCountedBars=0;
int lastcolor=0;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
int draw_begin;
string short_name;
// indicator buffers mapping, drawing settings and Shift
// Histogram downArrow Red
SetIndexBuffer(0,VolBuffer1);
SetIndexStyle(0,DRAW_HISTOGRAM);
SetIndexShift(0,MA_Shift);
// Histogram upArrow Green
SetIndexBuffer(1,VolBuffer2);
SetIndexStyle(1,DRAW_HISTOGRAM);
SetIndexShift(1,MA_Shift);
// Moving average line white
SetIndexBuffer(2,VolBuffer3);
SetIndexStyle(2,DRAW_LINE);
SetIndexShift(2,MA_Shift);
IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS));
if(MA_Period<2) MA_Period=2;
draw_begin=MA_Period-1;
switch(MA_Method)
{
case 1 : short_name="EMA(" ; draw_begin=0; break;
case 2 : short_name="SMMA("; break;
case 3 : short_name="LWMA("; break;
default : short_name="SMA(" ; MA_Method=0;
}
IndicatorShortName(short_name+MA_Period+")");
SetIndexDrawBegin(0,draw_begin);
return(0);
}
//+------------------------------------------------------------------+
//| Main |
//+------------------------------------------------------------------+
int start()
{
if(Bars<=MA_Period) return(0);
ExtCountedBars=IndicatorCounted();
// check for possible errors
if (ExtCountedBars<0) return(-1);
// last counted bar will be recounted
if (ExtCountedBars>0) ExtCountedBars--;
switch(MA_Method)
{
case 0 : sma(); break;
case 1 : ema(); break;
case 2 : smma(); break;
case 3 : lwma();
}
return(0);
}
//+------------------------------------------------------------------+
//| Simple Moving Average |
//+------------------------------------------------------------------+
void sma()
{
double sum=0;
int i,pos=Bars-ExtCountedBars-1;
// initial accumulation
if(pos<MA_Period) pos=MA_Period;
for(i=1;i<MA_Period;i++,pos--)
sum+=Volume[pos];
while(pos>=0)
{
sum+=Volume[pos];
VolBuffer3[pos]=sum/MA_Period;
sum-=Volume[pos+MA_Period-1];
Vcolor(pos);
pos--;
}
// zero initial bars
if(ExtCountedBars<1)
for(i=1;i<MA_Period;i++) VolBuffer1[Bars-i]=0;
}
//+------------------------------------------------------------------+
//| Exponential Moving Average |
//+------------------------------------------------------------------+
void ema()
{
double pr=2.0/(MA_Period+1);
int pos=Bars-2;
if(ExtCountedBars>2) pos=Bars-ExtCountedBars-1;
while(pos>=0)
{
if(pos==Bars-2) VolBuffer3[pos+1]=Volume[pos+1];
VolBuffer3[pos]=Volume[pos]*pr+VolBuffer3[pos+1]*(1-pr);
Vcolor(pos);
pos--;
}
}
//+------------------------------------------------------------------+
//| Smoothed Moving Average |
//+------------------------------------------------------------------+
void smma()
{
double sum=0;
int i,k,pos=Bars-ExtCountedBars+1;
pos=Bars-MA_Period;
if(pos>Bars-ExtCountedBars) pos=Bars-ExtCountedBars;
while(pos>=0)
{
if(pos==Bars-MA_Period)
{
// initial accumulation
for(i=0,k=pos;i<MA_Period;i++,k++)
{
sum+=Volume[k];
// zero initial bars
VolBuffer3[k]=0;
}
}
else sum=VolBuffer3[pos+1]*(MA_Period-1)+Volume[pos];
VolBuffer3[pos]=sum/MA_Period;
pos--;
}
}
//+------------------------------------------------------------------+
//| Linear Weighted Moving Average |
//+------------------------------------------------------------------+
void lwma()
{
double sum=0.0,lsum=0.0;
double price;
int i,weight=0,pos=Bars-ExtCountedBars-1;
//---- initial accumulation
if(pos<MA_Period) pos=MA_Period;
for(i=1;i<=MA_Period;i++,pos--)
{
price=Volume[pos];
sum+=price*i;
lsum+=price;
weight+=i;
}
//---- main calculation loop
pos++;
i=pos+MA_Period;
while(pos>=0)
{
VolBuffer3[pos]=sum/weight;
if(pos==0) break;
pos--;
i--;
price=Volume[pos];
sum=sum-lsum+price*MA_Period;
lsum-=Volume[i];
lsum+=price;
}
//---- zero initial bars
if(ExtCountedBars<1)
for(i=1;i<MA_Period;i++) VolBuffer3[Bars-i]=0;
}
//+------------------------------------------------------------------+
//| Color depends on gain or loss and previous volume |
//+------------------------------------------------------------------+
// 1 - histo down red
// 2 - histo up green
// 3 - line white
void Vcolor(int p)
{
if (Volume[p+1]>Volume[p])
{
VolBuffer1[p]=Volume[p];
VolBuffer2[p]=0;
lastcolor=Red;
}
if (Volume[p+1]<Volume[p])
{
VolBuffer1[p]=0;
VolBuffer2[p]=Volume[p];
lastcolor=Green;
}
if (Volume[p+1]==Volume[p])
{
if ( lastcolor==Red )
{
VolBuffer1[p]=Volume[p];
VolBuffer2[p]=0;
}
if ( lastcolor==Green )
{
VolBuffer1[p]=0;
VolBuffer2[p]=Volume[p];
}
}
}
//+------------------------------------------------------------------+
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