The VAVROOM Moving Average (Volume and Volatility)

446

I have an idea for a moving average that looks at Volume + Volatility and here is why

446

Activities Idea Details

The VAVROOM Moving Average (Volume and Volatility)

Low Volatility and Low Volume: When the script identifies low volatility along with low volume, it suggests a period of market inactivity or lack of interest at a particular price level. Traders might interpret this as a consolidation phase where the market is preparing for a potential breakout or breakdown. Low volume during low volatility...

Hi, the coffeist trader !
Any news about VAVROOM ? I'm sure lots of us are waiting this brilliant indicator.

mervrich

This sounds like an excellent idea, I'm really curious to how this will work on live charts. I have a 50 period VWMA on my charts at all time and use it in conjunction with price to trade from retracements and brakeouts in the market. It would be awesome to combine a strategy using this with a Volume profile

CoffeeShopCrypto and dayasingh

CoffeeShopCrypto looks like this might answer your problem my friend 2 months ago

MUHAMMAD NABEEL hi, How do i get vavroom indicator ? 1 month ago

CoffeeShopCrypto MUHAMMAD NABEEL it's not released yet 1 month ago

Hi Eric, is this indicator ready for prime time yet?

CoffeeShopCrypto, Fitola and 2 others

CoffeeShopCrypto no 2 months ago

Faraz07 What is prime time 2 months ago

CoffeeShopCrypto Prime Time is a figure of speech. He means is it ready for the mass public. lol but thanks for asking! 2 months ago

Faraz07 My bad 😅 2 months ago

Here is a file with full details of the indicator and what its doing against market structure.

VAVROOM Consolidation trading.txt 0MB

ChangPengZhao, CSCFoundation and 4 others

roxxi Eric, each time you post an idea, the market becomes clearer to me. Sometimes I think you read my mind, as I each time I scour TV or YT for... Show more 2 months ago

CoffeeShopCrypto That's great to hear !. Thanks very much 2 months ago

Meet The VAVROOM A Perfect Breakout Indicator

00:00 Intro to the VABROOM01:29 What is Consolidation10:15 - How to Trade the Ranges13:10 Range Expansion Trade Setup15:25 Where to find the Indicator15:53 H...

ChangPengZhao, dayasingh and 6 others

Show previous comments (1)

CoffeeShopCrypto Thanks 2 months ago

Jimbo75 Love the name😀 2 months ago

ps.125 This is very cool!!!! I always love PA based indicators!!!! Manipulation and then distribution is where the best trades are found. Well done bro!!! 2 months ago

CoffeeShopCrypto ahh yes . i figured youd be the first pro on board with this one. Youll enjoy this little filter im sure 2 months ago

ugurguray bud when can we able to try ? 2 months ago

Low Volatility and Low Volume:

When the script identifies low volatility along with low volume, it suggests a period of market inactivity or lack of interest at a particular price level. Traders might interpret this as a consolidation phase where the market is preparing for a potential breakout or breakdown.
Low volume during low volatility periods indicates a lack of participation from market participants, suggesting that they may be waiting for more clarity before taking significant positions.
This phase can be seen as a "calm before the storm" situation where traders are cautious, waiting for a catalyst to drive the market in one direction or the other.

Rising Volume and Increasing Volatility:
When volume starts to rise, as indicated by the script, it suggests increasing participation and interest in the market.
Rising volume often accompanies significant price changes, leading to increased volatility. This could be due to various factors such as news releases, earnings reports, or major market events.
Traders interpret rising volume as a sign of increasing market activity and potential opportunities for profitable trades. Higher volume often precedes breakout or breakdown moves in price action.

In summary, (Yes I had "ChatGPT" write the following part for me), the script provides valuable insights into market dynamics by highlighting periods of low volatility and low volume, as well as signaling potential shifts in market sentiment when volume starts to rise. Traders can use this information to anticipate potential breakout or breakdown moves and adjust their trading strategies accordingly. It's important to consider both volatility and volume together as they often work hand in hand in influencing price movements and market behavior.

Now this indicator isn't the be-all-end-all indicator but so far it works REALLY well.
I have an idea of where it works best and its when price reaches fractal points of market structure.
Like key levels (which would be the primary trend levels or primary support and resistance levels
and then there's the fractal levels or "secondary" levels of support and resistance.

A PRIMARY level would be the top and bottom of a channel on your chart and this channel is either up or downtrend.
A SECONDARY level would be the short term trend. Like very short pivot levels. Most recent price swings. Even your short term moving average like a 14, 20 or 28 or less (if you dare to go that low)

This script will show you previous areas in the market that are NOT interesting or low volatility areas. You can mark these area as a note for when price comes back to them.
[LOW VOLUME]
Price retraces to an area with low VAVROOM (Volume and Volatility)
If price comes back to these levels and exhibits low volume, you should be entering a pullback and price will push back the other way.

[RISING VOLUME]
Price retraces to an area with low VAVROOM (Volume and Volatility)
If price comes back to these levels and exhibits rising volume, you should be entering a pullback and price will push back the other way.

The script shows you a background color where volatility fell off the map and its low. So is volume at this point but during the colored background, volume will increase. SO essentially the background has a left and right side.
Left side is low volatility AND low volume
Right side is higher volatility AFTER volume has gone up. Somewhere inside the gray area, volume has risen enough to initiate trading activity.
What ive done on the chart is to simply take the closing price of the left side and the closing price of the right side and draw a PD-ARRAY ( a box) around them.
This closing price area is now the short term consolidation area which turns into
orderblocks / support and resistance / breaker blocks/ etc.
You can almost say this is where liquidity was left behind in short term ranging markets which needs to be swept.

I wont be updating this code that much as it is a standalone but I may use its theory in a later script to find some good levels of liquidity.
Ill be putting the script up on on Tradingview for free but you can also get it from the FREE INDICATORS area here in CoffeeShopCrypto.net

Comments. Ideas. Leave them below.
Category
Technical Indicators
Created
Wednesday, 20 March 2024
Idea admin
CoffeeShopCrypto

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