A new idea of mine that I am presently experimenting on for my trades.
The DVI bands is based on my previously published DVI script:
The Directional Volume Index (DVI) is defined as follows: DVI = VWMA (len1) - SMA (len2), where by default, len1==len2
The position of the DVI above/below the current price provides volume confirmation of the direction of the price trend.
The magnitude of the DVI above/below the current price provides the volume confirmation of the strength of the price trend.
The stdev band is derived from the DVI where:
* The DVI piercing the Stdev boundary suggests a significant move in the corresponding direction. * Tightening of the DVI-Stdev bands can suggest the possible incoming of major move ahead.