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GCB

Volume Gradient + Heikin Ashii Trend Indicator

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In the spirit of the current interest in volume-based indicators, I wrote this TradeStation hybrid of Volume Gradient and Heikin Ashii Trend. It will create a chart with two distinct ranges of colors. One color range, defaulted to green, indicates an uptrend--the other, defaulted to red, indicates a downtrend. The relative darkness of each color reflects the amount of volume in a particular bar relative to a previous sample average. The number of bars in the sample both for determining the trend and the average volume is the same and is set by the input parm Length.

 

Since PlotPaintBar takes RGB color numbers, to provide the full range of colors, the inputs to this indicator allow a completely customizable red, green and blue setting for each end of each color range. For example, UpHR = The uptrend, high volume red component, UpHG = the uptrend, high volume green component, and so forth. DnLB = the downtrend, low volume blue component, and so forth.

 

You can use any typical Windows color selection dialog box to select colors and find out the Reg, Green, Blue component numbers for the color. (See the sample picture.)

 

I suggest using washed-out colors for the low volume colors and rich colors in the same basic color for the high volume colors. For example, faded pink to deep red. But of course you can do whatever makes sense to you and looks good to your eye.

 

(Note that the algorithm used for determining trend is not exactly the same as TTM trend, but the results are pretty much the same.)

 

Hope this helps!

TrendVol.jpg.e868fb65b944cbb73ff005a6776a82ac.jpg

Pallette.jpg.54e9debbc4acdfc1c63be679013baf99.jpg

TRENDVOL BARS.ELD

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You have had a great idea... Thanks!

 

I wonder if there would be a way to show the volume like a thermometer on each candle? If you could use up volume on all candles but show it like water in a drinking glass? The difference would be down volume. That would be special.

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Guys,

 

Thanks for your interest in this indicator.

 

Here's a new version. It adds an input that allows you turn off the trend indicator and just paint normal up and down bars albeit with the volume shadings.

 

Also, IMPORTANT, I discovered that for the colors to show consistent density they must parallel each other. This is hard to explain, but if you look at the settings below you can see what I mean.

 

UpHR(0),

UpHG(135),

UpHB(0),

 

UpLR(205),

UpLG(255),

UpLB(205),

 

DnHR(135),

DnHG(0),

DnHB(0),

 

DnLR(255),

DnLG(205),

DnLB(205);

 

Without this you will have problems with similar relative volumes showing inconsistent shading between the up and the down versions.

 

Please note that you have to delete the indicator and re-add it after installing the new version or it will use your old color settings.

TRENDVOL BARS.ELD

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GCB, just so I understand how to use this correctly, the winner of the up/down volume battle gets the candle. And... if the winner won the candle overwhelmingly, the color is darker. Light color for a close call.

 

Is that correct? I think I like it better without the trend. You have done a great job with this. Two thumbs up!

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Robert,

 

Thanks very much.

 

Actually, the way it works is this: If the candle is an up candle--that is the close (or current) price is greater than open price--then the density of the candle color is based upon the amount of up volume for that candle relative to the average of up volume for the preceding n candles, where n is set by the VolLength input. Vice versa for down. So up volume is only compared to up volume, and down is only compared to down. So if an up candle is dark it means it had quite a bit more up volume than the average of the preceding n candles' up volume.

 

Since each candle gains volume as it is being formed you will not know the end color of a candle until either it reaches its darkest possible color or the next candle begins. Practically all candles start out light colored.

 

When the trend indicator is in an uptrend all candles are green, whether they are up or down candles, and in a downtrend all candles are red. Even so, up candle volume is only compared to the average of up volume, and vice versa. The PriceLength input is used to determine the moving average for the trend determination.

 

Note also that this can only be used on intraday charts. Daily charts or larger do not differentiate between up and down volume on TS.

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Excellent.

 

You said PriceLength is used to determine the moving average for the trend. May be a dumb question but how does that work? Does this mean we can adjust the sensitivity, i.e. when the trend bars change color?

 

I was looking at a few volume "share bar" candle charts with this indicator. It appears to be working correctly with those too. Also I was thinking that your above explanation would be good to include inside the eld. Maybe a little credit for yourself too. :) Nothing wrong with putting your name on your work.

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Excellent.

 

You said PriceLength is used to determine the moving average for the trend. May be a dumb question but how does that work? Does this mean we can adjust the sensitivity, i.e. when the trend bars change color?

 

I was looking at a few volume "share bar" candle charts with this indicator. It appears to be working correctly with those too. Also I was thinking that your above explanation would be good to include inside the eld. Maybe a little credit for yourself too. :) Nothing wrong with putting your name on your work.

 

Yes, a longer PriceLength will find longer more sure trends, will but have a larger lag. A shorter PriceLength will locate trends faster, but will give more false signals. Such is the nature of trendfinding.

 

This indicator considers it a change to a downtrend when a point on the moving average is lower than the previous point, and a change to an uptrend when a point is higher than the previous point.

 

I will upload a new version soon with the comments, and also with a new option to allow determining the moving average price by something other than Close. e.g. (High+Low+Close)/3. This was a feature I neglected to add.

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I have dowloaded the latest version of the indicator and still cannot get the chart to print cadle stick chart as in the original example. When I toggle between OHLC and candlestick the OHLC is overlayed on the candlestick. It seems that the paintbar will only showup in OHLC format.

I also noticed that at the bottom section for volume in the original example there is a $I-Volume is there something I'm missing to get this to show as the example?

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I have dowloaded the latest version of the indicator and still cannot get the chart to print cadle stick chart as in the original example. When I toggle between OHLC and candlestick the OHLC is overlayed on the candlestick. It seems that the paintbar will only showup in OHLC format.

I also noticed that at the bottom section for volume in the original example there is a $I-Volume is there something I'm missing to get this to show as the example?

Can you post a screenshot of your desktop? The indicator is working properly for me.

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Latest version with new inputs plus comments.

 

Price = Calculation of price to be used to determine trend. e.g. Close, or, (High+Low+Close)/3), etc.

 

PriceLength = Number of price bars to look back to determine trend.

 

VolLength = Number of volume bars to look back to determine volume trend.

 

ShowTrend = Paint the bars showing the trend. If false, up bars are green, down are red.

 

ShowVolume = Paint the bars show showing volume density. If false, all bars are the same density.

TRENDVOL BARS.ELD

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Rob,

 

No still only paints OHLC - works great but no go on the candles - I also tried the default Volume Gradient and it does the same thing. I will look to upgrade to ver 8.2 over the weekend and not migrate existing data. Fresh install and I will manually move everything back in. Hopefully that will fix it. What version are you on hence it works for you?

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Doesn't work for me either and I'm on TS82. v3863. Screenshot attached of candle vs. bar chart.

 

Any ideas GCB?

 

keymoo,

 

That is so weird. I have no idea right now. The function which does the work is NormGradientColor(), everything else about the indicator is pretty basic.

 

I can't debug it because it's not happening to me. All I can suggest is to call TS.

 

But try the TS supplied paintbar indicator called Volume Gradient. They'd hesitate to to support mine, but they have to support their own.

 

G

 

 

Rick,

 

Send me your email addresss. The forum won't let me upload a workspace.

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GCB;

 

While VSA makes different assumptions about volume, I must say that this is a great idea. I commend you on your work. Would love to see more charts and then of course......trading ideas/set-ups that this tool brings about.

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