Volume Threshold Script For ThinkOrSwim

[Alex]

Input a volume threshold number of your choice and volume bars will paint in a different color + alert. From my observations markets tend to reverse (intraday) at or after a high volume spike / period this script allows me to quickly glance at the lower volume section of the chart and I identify just that. It's nothing fancy but I thought I would contribute and maybe somebody will find it useful in their trading.

#Custom Volume Threshold
declare lower;
declare zerobase;

input Threshold = 3000;

plot Vol = volume;
plot ThresholdLine = Threshold;

ThresholdLine.setPaintingStrategy(paintingStrategy.line);
ThresholdLine.setDefaultColor(color.gray);
ThresholdLine.SetLineWeight(1);

Vol.SetPaintingStrategy(PaintingStrategy.HISTOGRAM);
Vol.SetLineWeight(1);
Vol.DefineColor("Threshold", CreateColor(116,189,232));
Vol.DefineColor("Normal", CreateColor(10,93,128));
Vol.AssignValueColor(if vol > ThresholdLine then Vol.Color("Threshold") else if vol < ThresholdLine then Vol.Color("Normal") else GetColor(1));

Alert(vol > ThresholdLine, "HighVolume" , Alert.Bar, Sound.Bell);

 

[MatthewA]

Input a volume threshold number of your choice and volume bars will paint in a different color + alert. From my observations markets tend to reverse (intraday) at or after a high volume spike / period this script allows me to quickly glance at the lower volume section of the chart and I identify just that. It's nothing fancy but I thought I would contribute and maybe somebody will find it useful in their trading.

View attachment 20568

#Custom Volume Threshold
declare lower;
declare zerobase;

input Threshold = 3000;

plot Vol = volume;
plot ThresholdLine = Threshold;

ThresholdLine.setPaintingStrategy(paintingStrategy.line);
ThresholdLine.setDefaultColor(color.gray);
ThresholdLine.SetLineWeight(1);

Vol.SetPaintingStrategy(PaintingStrategy.HISTOGRAM);
Vol.SetLineWeight(1);
Vol.DefineColor("Threshold", CreateColor(116,189,232));
Vol.DefineColor("Normal", CreateColor(10,93,128));
Vol.AssignValueColor(if vol > ThresholdLine then Vol.Color("Threshold") else if vol < ThresholdLine then Vol.Color("Normal") else GetColor(1));

Alert(vol > ThresholdLine, "HighVolume" , Alert.Bar, Sound.Bell);

From my observations markets tend to reverse (intraday) at or after a high volume spike / period this script allows me to quickly glance

That is absolutely true. TY
Next year I'm wanting to start a detailed review of all the volume techniques.
What are some of your favorite speakers who emphasis Volume.

 

[Alex]

That is absolutely true. TY
Next year I'm wanting to start a detailed review of all the volume techniques.
What are some of your favorite speakers who emphasis Volume.

I'm not sure if I have any but I think volume is a crucial part of any trading strategy as it's non lagging and can aid you in spotting things like exhaustion (reversals), low volume pull backs (which could indicate a continuation of the move) etc... it's not a 100% of course like any indicator but it's definitely worth keeping an eye on.

 

[vietroadie]

What is the significance of the hard coded 3000 threshold?

 

[Alex]

What is the significance of the hard coded 3000 threshold?

at that time i was mainly trading and observing the NQ on the 2 minute time frame and i noticed that 3,000 contracts on a 2 minute candle seems to be a "High volume" bar. But in general no major significance you can use whatever number you see fit.