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Relative Volume & Trades Indicators for ThinkOrSwim

$99.99 $89.99

For many of you subscribe to the classical trading philosophies of legendary traders like Jesse Livermore and Richard Wyckoff, there is probably no need for me to further emphasize the importance of volume here. Over the years I’ve read many, many trading books, and after reading many of these classical traders’ books, pamphlets, and articles, I realized my current toolset for analyzing volume was insufficient.

Description

Relative Volume Version 2.0 – Walk Through [Video]

*** Just released! Version 2.0 with new features, more flexibility! ***

For many of you subscribe to the classical trading philosophies of legendary traders like Jesse Livermore and Richard Wyckoff, there is probably no need for me to further emphasize the importance of volume here. Over the years I’ve read many, many trading books, and after reading many of these classical traders’ books, pamphlets, and articles, I realized my current toolset for analyzing volume was insufficient.

Most trading websites tell you to watch for volume surges, and there are many ways of determining when a surge is happening. Some relative volume indicators simply check to see when volume is above its moving average. But these measures are highly inaccurate, especially at certain times of the day. Volume is always going to be higher at the open and the close, and these extremes skew the moving average for the rest of the day, making it basically useless.

What I really needed was a way to see what the average volume was for a given bar at a specific time of day, and then to compare the current volume to that bar’s average to see if there was anything unusual going on. So I set about trying to develop ways of automating my volume analysis as much as possible, and making it abundantly obvious whenever there was a trading anomaly in the works. And that journey led to this set of ThinkScript studies for ThinkOrSwim, which provide an easy, visual way for stock traders to quickly determine if a tradable event is occurring.

How it works:

Relative Volume Indicator Add to Chart

Relative Volume Indicator – Add to Chart
  • A given bar’s volume is averaged over a customizable look-back period (10 days by default).
  • The current bar’s volume is compared to its average volume and ranked in relation to that average.
  • If the current bar’s volume is below average, it will be dark gray; if it’s above average by certain thresholds it gets brighter, and turns blue at extremely high readings, drawing your immediate attention.

What you get:

Relative Volume Indicator Properties

Relative Volume Indicator Properties
  • A custom-programmed relative volume indicator that tells you if the current volume is below average, just average, above average, or truly extreme.
  • A custom-programmed relative trades indicator that shows you the relative number of trades that are happening — or, said another way, the relative speed at which the tape is scrolling — indicating the amount of interest there is at the current price level.
  • A special bonus indicator showing the average shares per trade for the current bar. When you see this number jump you know the big boys have joined the party!

Why you want it:

  • Find key turning points on the chart before the move is over. Identify where unusual buying or selling has begun to create a reversal and start building a position early.
  • See what the big boys are doing so you can follow in their wake and stay on the right side of the trade!
  • Never be fooled by the basic volume graph again. Your typical volume graph can lead you astray and trick you into thinking there is strong commitment behind a move when there really isn’t, or make you miss the moves that do have strong commitment behind them but are often impossible to find without the right tools!

 

relative volume indicator for thinkorswim

This 5 minute chart shows that relative / time-based volume, trades, and shares-per-trade can help pinpoint key events and turning points during the trading day.

 

Relative volume indicator for thinkorswim intraday
Relative volume indicator for thinkorswim intraday

 

Relative Volume Indicator for ThinkOrSwim Daily
Relative Volume Indicator for ThinkOrSwim Daily

 

Relative Volume indicator settings
Relative Volume indicator settings

 

Time Based Volume Walk-Through [Video]

 

Frequently Asked Questions

  1. Question: How do I install these indicators?
    1. Answer: For all our thinkscripts, we use the special ThinkOrSwim import links that automatically import the script into your system. Immediately upon checkout, you’ll be taken to a page with the install link, and you’ll also receive it for your records via email. There are 2 ways to use the import links:
      1. Method 1: Just click the link, and click the big green confirm button on the next page, and the script will be automatically imported into your platform. Then you just load it up like any other script in your platform. This is the easiest method, but certain browsers might have trouble recognizing the links. If yours does, just skip to the next method.
      2. Method 2: If your browser is incompatible with clicking the links, no problem! Just select and copy the link you’ll be sent after checkout. Go to the Setup menu in the top right corner of ThinkOrSwim, and click “Open shared item”. Then paste in the link and follow the prompts and it will immediately import the script into your system.
      3. Screenshots, video walk through, and a full tutorial video are available here.
  2. Question: Why doesn’t the indicator show anything on my chart?
    1. Answer: If one of your indicators doesn’t show anything after you import the indicator into TOS and load it onto a chart, it’s likely you haven’t loaded enough price history onto your chart. The indicator builds the average based on a certain number of days worth of data, specified in the settings, and if you don’t have that many days loaded on the chart, it won’t display. So just switch the default number of days you load on the chart to be more than required for the indicator.
ThinkOrSwim relative volume indicator settings panel
Make sure you have enough history loaded on your chart, or decrease the look back period of the indicator. You can always click “customize list…” in the time frame menu to adjust the amount of data your chart loads by default. Or you can decrease the look back period of the indicator.

 

More Questions?

We’re always happy to answer questions and full email support is provided with every purchase. We’ll make sure you get up and running. If you have questions, email us here or leave a comment below!

 

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