Volume Diffusion

27 ส.ค.

Indicator Overview
This indicator calculates potential volume (volume) based on the highest and lowest prices within a specified time period and displays it on the chart. This allows you to visually analyze the relationship between price fluctuations and volume.

How to use
Enter set values:.

setlength: Specify the period of time. The default value is 20. The calculation is based on the highest and lowest prices within this period.
sample_interval: Specifies the sampling interval. The default value is 1, sampling is done every bar. This is used to adjust the amount of data.
Display on chart:.

Blue line: highprice_ (highest price during the period).
Red line: Displays the lowprice_ (lowest price in the period).
Green line: Displays the potential volume (Potential_volume). It is the total volume at which the price changed.
Orange/purple step line: Displays volume_cal (calculated volume). This is the calculated volume change based on historical volume.
Interpretation:.

Change in highs and lows: As highs and lows change, the potential volume is updated accordingly. This allows us to track volume changes at key price levels.
volume_cal changes: Track volume changes and analyze how volume changes when prices reach highs and lows.
Reasons why smaller time frames work better
Data Density:.

Smaller timeframes (e.g., 1-minute and 5-minute timeframes) provide more bars, so price fluctuations and volume changes can be observed in detail. This allows the indicator to update more frequently and accurately reflect the relationship between price and volume.
Quick Reaction:.

With shorter time frames, price fluctuations and volume changes are captured more quickly, making the indicator calculations more sensitive. This allows for immediate analysis of short-term volume changes.
High-precision calculations:.

With longer time frames, there is less data to calculate and volume changes may not be fully reflected. With shorter time frames, the relationship between price changes and volume can be more precisely determined.
Cautions
Data volume limitations: Pine Script™ has limitations on the amount of data that can be used. If you are working with data over a long period of time, errors may occur when attempting to process large amounts of data. It is important to set the sampling interval (sample_interval) appropriately to control the amount of data.

Calculation performance: Even when using small time periods, performance can be affected by the complexity of the calculation. Pay attention to the sampling interval and the efficiency of the calculation.

The indicator can be used to better understand the relationship between price fluctuations and volume to help analyze and improve trading strategies. In particular, it allows for more accurate analysis on shorter time frames.