Volume Based Ranges (VBR) [SS]

Here is the Volume Based Ranges or VBR indicator.

How it works

The indicator works by:

• Sorting volume into buying and selling volume, then
  
• Calculating 2 independent Z-Scores for buying and selling data, then
  
• Identifying the high buying and selling nodes through the use of the Z-score threshold.
  
• Tracks the average target/move based on buying and selling nodes over a designated lookforward horizon (i.e. if you want to see the average move a high selling node happens over 20 candles, you can modify the lookforward horizon to 20).
  
• Calculates the composition from each volume node, displaying the composition information on each line (the % of buying and selling each node contains).
  

How to Use it

To use this indicator:

1. Select the Z-Score length of assessment: By default, z-score is 75 and this is usually fine to leave.
   
2. Identify the threshold trigger: This will need to be adjusted based on your timeframe. If you are using 1 minute, the data is noiser and you want more profound signals. Thresholds generally in this range should be between 5 - 7. For larger timeframes, you want to relax this threshold, to about 2 to 3. You can toggle in increments of 0.5 to find what works the best. Generally you want to see very rigorous volume node signals instead of tons of them.
   
3. Determine what you want to see: You can turn of the support and resistance lines and just have the node identification signals and the return boxes. Or, you can just have the support and resistance lines and turn off the return boxes. You can customize the information the indicator displays in the settings menu to suit what you are most interested in.
   

Let's look at some examples'



DIS on the hourly. We can see that the average up move from the high buying nodes has a target of 115.42, and in between there we can see the high selling and buying nodes and their compositions.

High buying (100% of the high buying volume) is around the 112.61. This means, you would expect this to be an area of retracement.

We can also see that high selling is just below that at 111.66, which can be a resistance area.
Here is a closer look at the levels specifically:


EPAM on the daily:



You can see a successful retrace back to a high volume node.


Concluding remarks

That's the indicator!
Its one that is best to get a feel for, play around and decide on the settings you like for your individual ticker.

I have included tooltip descriptions for the settings within the indicator as well.

I hope you enjoy it and find it helpful!

Thanks for reading/checking it out and as always, safe trades!