Volume Exhaustion

Signal Plotting

A special feature is the plotting of 'Release' signals, marked by orange diamonds, indicating points where the exhaustion index crosses under its previous value and is above a certain boundary. This could signify critical market points 🚨.

Calculation Length Customization

Users can adjust the calculation and Signal lengths to suit their trading style, allowing for flexibility in analysis over different time periods. ☝️

len = input(50, "Calculation Length")

len2 = input(8, "Signal Length")

Visual Appeal

The script offers customizable colors (col for the indicator and col1 for the background) enhancing the visual clarity and user experience 💡.

col = input.color(color.white, "Indicator Color")

col1 = input.color(color.gray, "Background Color")

Advanced Volume Processing

At its core, the script utilizes a combination of Hull Moving Average (HMA) and Exponential Moving Average (EMA) applied to the volume data. This sophisticated approach helps in smoothing out the volume data and reducing lag.

sv = ta.hma(volume, len)

ssv = ta.hma(sv, len)

Volume Exhaustion Detection

The script calculates the difference between the volume and its smoothed version, normalizing this value to create an exhaustion index (fff). Positive values of this index suggest potential volume exhaustion.

ff = (f) / (ta.ema(ta.highest(f, len) - ta.lowest(f, len), len)) * 100