Volume Weighted Directional Bias

This indicator uses a series of five volume weighted moving averages cast out in successive powers of three to calculate a value which expresses the direction and momentum of a trend. It can be used as a contrary indicator to identify waning momentum at the top or bottom of a rally or selloff. It can be used to identify trendline divergence. It can also be used for trend confirmation.

The length of the moving averages can be changed in the indicator inputs, but each should be longer than the previous.

The problem with most trend indicators is that they are either too lagging or too noisy. This indicator seeks to combine smoothed data and a long lookback period with an exponentially forward weighted calculation, making it still very responsive to market changes without too much signal noise.

Catatan Rilis:

Updated misnamed input title so that it is not confusing. This does not change any functionality.

Catatan Rilis:

Updated to PineScript v5