Volume Based Price Prediction [EdgeTerminal]

3 Nov

This indicator combines price action, volume analysis, and trend prediction to forecast potential future price movements. The indicator creates a dynamic prediction zone with confidence bands, helping you visualize possible price trajectories based on current market conditions.

Key Features

• Dynamic price prediction based on volume-weighted trend analysis
  
• Confidence bands showing potential price ranges
  
• Volume-based candle coloring for enhanced market insight
  
• VWAP and Moving Average overlay
  
• Customizable prediction parameters
  
• Real-time updates with each new bar
  

Technical Components:

Volume-Price Correlation: The indicator analyzes the relationship between price movements and volume, Identifies stronger trends through volume confirmation and uses Volume-Weighted Average Price (VWAP) for price equilibrium

Trend Strength Analysis: Calculates trend direction using exponential moving averages, weights trend strength by relative volume and incorporates momentum for improved accuracy

Prediction Algorithm: combines current price, trend, and volume metrics, projects future price levels using weighted factors and generates confidence bands based on price volatility


Customizable Parameters:
Moving Average Length: Controls the smoothing period for calculations
Volume Weight Factor: Adjusts how much volume influences predictions
Prediction Periods: Number of bars to project into the future
Confidence Band Width: Controls the width of prediction bands

How to use it:
Look for strong volume confirmation with green candles, watch for prediction line slope changes, use confidence bands to gauge potential volatility and compare predictions with key support/resistance levels

Some useful tips:
Start with default settings and adjust gradually
Use wider confidence bands in volatile markets
Consider prediction lines as zones rather than exact levels

Best applications of this indicator:

• Trend continuation probability assessment
  
• Potential reversal point identification
  
• Risk management through confidence bands
  
• Volume-based trend confirmation