What are Volume Pivots?
This indicator is a very special and unique measurement of the all important Volume parameter in trading. There is no other indicator like this on the market.
The indicator will automatically 'look back' a user defined number of bars with each bar being a user defined interval, then find the top 5 bars for volume. After this calculation, the software then draws horizontal S/R lines at these price levels.
Thus, the trader now knows where all the 'action' has been and where S/R is likely to occur again, 'in the future'.
Options
- VP1 thru VP5 horizontal line color options
- Number of Lookback Bars
Select a lower number to get volume action closer to the current time period - Lookback Bar Interval
A larger number will look farther back in time and show where the real heavy volume was - Number of Pivots Shown
You can select to see 1 or all 5 volume pivot lines
Example: you set the number of lookback bars to 100 and the interval to 60 min. Thus, you are looking back 100 X 60 min = 100 hours or about 4 days.
Experiment in your chosen instrument and chart interval, with the number of lookback bars and lookback bar interval to get the best setting.
Example: Volume Pivots on a Midcap (MC) chart
