Volume Accumulation Percentage Indicator for ThinkorSwim

[BenTen]

This indicator was converted from TradingView.

Volume Accumulation Percentage Indicator (VAPI) is a variation of the classic volume-accumulation indicators. It uses volume the same way as OBV except that it assigns volume weights based on intraday volatility.

In a positive trend, if the stock price is close to a (local) new high, the VAPI should be at its maximum as well (and vice versa for a negative trend). If the market is looking for a direction, if the price is in the bottom side of his current trading range and if, at the same moment the VAPI osc slopes up, there is accumulation on the stock and that the prices should start to climb. The SELL signal is given when the VAPI decreases (distribution). Divergences are usually very effective too.

Tuning the "length" parameter may be needed for your instrument (default is 10), do let me know if you find a different value to be optimal for majority of instruments.

thinkScript Code

# Volume Accumulation Percentage Indicator [LazyBear]
# Assembled by BenTen at useThinkScript.com
# Converted from https://www.tradingview.com/script/kVk6pN9z-Volume-Accumulation-Percentage-Indicator-LazyBear/

declare lower;

input length = 10;
def x = (2 * close - high - low) / (high - low);
def tva = sum(volume * x, length);
def tv = sum(volume, length);
def va = 100 * tva / tv;
plot ZeroLine = 0;
plot histogram = va;
plot line = va;

histogram.SetPaintingStrategy(PaintingStrategy.HISTOGRAM);
histogram.assignValueColor(if va > 0 then Color.green else Color.red);

 

[korygill]

This uses 2x the closing price. Chaikin Money Flow uses close-low, otherwise this is about the same.

 

[BenTen]

@korygill Thanks for the clarification.

 

[horserider]

Why not use OBV? An improvement of Chaikin and a well respected study.

 

[BenTen]

@horserider You would have to make that decision for yourself. If OBV is working for you I don't see any reason to use this.

 

[markos]

OBV, Chaikin, Twiggs, ..all types of money flow indicators are out there. What Speaks to one trader and there individual style is up to them.
What BenTen is sharing for this community is giving them a choice that they might not know of. just my 2 cents.

 

[jacqshen]

@markos @BenTen I completely agree. I’m going on 2 yrs learning about trading and I’m amazed at how much I’ve learned from all of you in the few weeks of discovering this site. What a blessing. Thank you.

 

[markos]

@jacqshen
Very glad to hear that. Feedback is always good. My grandfather had a sign in his store that read:
"If we please you, please tell others. If not, then please tell us."
Thanks again for telling us!

 

[skynetgen]

From my experience testing OBV, Chaikin, MFI. And imho the best volume flow oscillator for daily+ timeframe is FVE (finite volume element).

But what I really use is just relative volume on every bar and the price action. Volume oscillators works very similar to price oscillators and share same issues- they are great for confirmation, but by themselves produce A LOT of false signals. Cannot be used as primary signal imho