Lancelot_Augur

Lancelot ATR Volume Meter

This is an experiment I did a while back ago.

I often think On Balance Volume is a great indicator as trend direction and volume cannot lie.

However, I bumped into a few problems.

It is slow, doesn't show volatility and often time it is prone to chop.

That's why I added ATR to the equation.

Original OBV calculation
src > 0? : +volume : src < 0? -volume

Modified OBV with ATR
src > 0 ? +volume * ( volume / atr) : src < 0? -volume * ( volume / atr)

I have used 2 ema for this modified OBV.
ema 3
ema 18

By adding ATR to the equation we can smooth out many erratic price movement. (Stop hunting)

Also, when price move slowly but steady, often prepping for a big move, this indicator will move faster.

In short, this indicator prevents you from being stop hunted and also provide great entry for a trending market.

Works well on BTCUSD XBTUSD , as well as other major liquid Pair.

Feel free to follow me on Twitter @Lancelot_Auger for more free Alpha.

Please acknowledge my effort by like and follow.

And lastly,

Save Hong Kong, the revolution of our times.

Skrip open-source

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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