[TTI] Price confirmation indicator

The Price Confirmation Indicator is an innovative tool developed by TintinTrading to help his students learn to interpret Price + Volume moves. It is designed to provide traders with a visual cue for price movement confirmation based on both price direction and trading volume. I got the idea from watching Daivd Ryan, how he explains that he looks at volume first before looking at the price of a stock.

What sets this indicator apart is its dual analysis approach and easy interpretation: it not only evaluates price movements but also takes trading volume into account. The indicator's color-coded bars are dynamically adjusted based on the volume difference from a 50-day Simple Moving Average (SMA) of the volume. This offers traders an intuitive way to gauge both the market's direction and its strength.

🛠️––––WHAT IT DOES––––
The Price Confirmation Indicator performs the following functions:
👉Price Movement: Determines whether each trading day is an 'Up Day' or a 'Down Day' based on the closing price.
👉Volume Analysis: Calculates the 50-day SMA of trading volume and identifies the volume difference in percentage terms.
👉Transparency Adjustment: Dynamically adjusts the transparency of colored bars based on the volume difference.
👉Bar Coloring: Colors the bars blue for 'Up Days' and purple for 'Down Days', with the transparency indicating the strength of the volume.

Transparency Tresholds:
  • Full color (no transparency 0%) - Volume is greater than 40% compared to the 50DSMA Volume
  • Strong color (little transparency 20%) - Volume is between 20% and 40% greater than the 50DSMA Volume
  • Noticable color (moderate transparency 40%) - Volume is between 0% and 20% greater than the 50DSMA Volume
  • Negligable color (strong transparency 60%) - Volume is light and is less than 50DSMA Volume with less than 20% lower.
  • Weak color (very strong transparency 80%) - Volume is below 50DSMA, with between 40% and 20% lower.
  • Very weak color (max transparency 90%) - Volume is below 50DSMA, with between -40% and -80% lower.
  • Alarming weak color (color is orange) - Volume is noticably light - this generally signals velocity contraction before a breakout.

💡 ––––HOW TO USE IT––––
Installation: Search for " Price Confirmation Indicator" in TradingView’s indicator library and add it to your chart.
Price Up Color: Customize the color for 'Up Days'.
Price Down Color: Customize the color for 'Down Days'.
Blue bars signify 'Up Days', and their transparency indicates the strength of the volume.
Purple bars represent 'Down Days', with transparency again indicating volume strength.
Orange bars signify extremely low volume days.

Volume Transparency: The less transparent the bar, the stronger the volume, aiding in confirming the price direction.
The indicator is a great tool for newer traders to get in the habit of reading Price & Volume together!

👉 I provide FREE EDUCATION + COURSES here: tintintrading.substack.com/

👉 I share my TRADING everyday here: discord.gg/gTmcqWyWWe

👉 I sell premium indicators here: tradingviewindicators.net
Skrip open-source

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