NY Session Vol Entries (RB Trading)

NY Session Vol Entries (RB Trading)

NY Session Vol Entries is an intraday analysis script designed to evaluate price behavior during U.S. market hours on the one hour chart. It focuses on the interaction between relative volume expansion, adaptive volatility structure, and directional momentum alignment to help users interpret active market conditions.

The script is intended specifically for liquid U.S. equities during the New York session and is not designed for use outside this context.

Intended Usage and Scope

• Timeframe: 1 hour only
• Market hours: New York session
• Asset class: U.S. equities with consistent volume
• Style: Intraday structure and momentum evaluation
• Alerts: Available for all signal types

Core Framework

The script evaluates market behavior through three interdependent components that must align before a setup is displayed:

Relative volume behavior

Volatility expansion and contraction

Directional momentum context

This structure helps filter low-participation periods and reduce noise.

Relative Volume Analysis

The script compares current volume to a rolling 14-period average to identify periods where participation meaningfully deviates from typical conditions.

Elevated volume often occurs during session opens or active repricing phases. When volume remains muted, the script suppresses signals to avoid low-quality environments.

Adaptive Volatility Structure

Volatility bands are calculated using an 8-period true range measurement. These bands adjust dynamically based on recent volatility rather than remaining static.

During elevated participation, the bands compress to reflect tighter price acceptance. As volatility expands, the bands trail price to help visualize directional structure.

Directional Momentum Context

Directional context is determined using a dual moving average relationship.

• When short-term momentum is above longer-term momentum, the script allows only bullish evaluations
• When short-term momentum is below longer-term momentum, the script allows only bearish evaluations

This alignment reduces counter-directional signals and helps maintain structural consistency. The filter can be disabled if users wish to study range behavior.

Signal Classification

The script displays two types of informational labels:

Volume-Aligned Signals
These appear only when directional momentum and relative volume expansion align at candle close.

Momentum Rotation Signals
These indicate directional shifts regardless of volume and are intended to provide context rather than standalone triggers.

All signals are confirmed only after the candle closes. No intrabar logic is used.

Stop and Target Reference Plotting

When conditions align, the script plots visual reference levels:

• A stop reference positioned beyond the momentum structure
• A projected target reference calculated using a fixed 2R multiple relative to the stop distance

These levels are provided for consistency and planning. They are not forecasts or guarantees.

Session and Timing Considerations

The script is designed specifically for New York market hours. Liquidity and participation outside this window often distort volume and volatility behavior.

Earnings sessions should be treated with caution, as event-driven price action can override normal structural behavior.

Opening Range Consideration

The first one hour candle of the New York session can display elevated volatility due to initial repricing. Allowing additional candles to form may provide clearer structural information before evaluating signals.

Why One Hour and New York Session

The one hour timeframe balances structure and responsiveness while reducing lower-timeframe noise. New York trading hours provide the most reliable volume profile for U.S. equities, making relative volume analysis more meaningful.

Settings Overview

• Volatility period: 8
• Volatility multiplier: 3.0
• Volume average period: 14
• Momentum averages: 8 and 21
• Trend filter: Enabled by default
• Alerts available for all signal types

Chart Usage Guidelines

• Use the script on a clean chart
• Avoid stacking additional momentum or volume indicators
• Drawings should only be used when they help interpret structure

Important Notes

This script analyzes historical price and volume behavior. It does not predict future price movement or ensure outcomes. Users should test the tool, understand its logic, and apply independent risk management.