Description
The PriceTimeFilteringAccVolume is a technical indicator designed to evaluate trend strength. The study identifies trend direction and plots a histogram using cumulative volume.
PriceTimeFilteringAccVolume identifies trend direction using the following rules:
- Uptrend. If the close price of the most recent period is greater than the high price of the previous period.
- Downtrend. If the close price of the most recent period is less than the low price of the previous period.
- The trend maintains direction until changed by one of the above rules.
The histogram can be interpreted as follows:
- Positive histogram bars represent uptrends and negative bars represent downtrends.
- Each histogram bar is generated by adding the current volume to the cumulative total. As a result, the size of each bar increases as long as the trend persists.
Consider using this indicator with PriceTimeFilteringBarCount, which helps identify trend duration.
Input Parameters
| Parameter | Description |
|---|---|
aggregation period
|
The aggregation period used in the calculations. |
paint bars
|
Defines whether to apply the user-defined color scheme or the default trend color scheme (red for downtrend and green for uptrend) to the price plot. |
Plots
| Plot | Description |
|---|---|
AccVolume
|
The Price Time Filtering Accumulated Volume plot. |
Further Reading
1. "Riding Sustained Price Trends – Trend Identification By Price And Time Filtering" by Alfred François Tagher. Technical Analysis of Stocks & Commodities, February 2024.
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.
Past performance is no guarantee of future performance.