Volume Based Price Prediction

This indicator combines price action, volume analysis, and trend prediction to forecast potential future price movements. The indicator creates a dynamic prediction zone with confidence bands, helping you visualize possible price trajectories based on current market conditions.

Key Features

  • Dynamic price prediction based on volume-weighted trend analysis
  • Confidence bands showing potential price ranges
  • Volume-based candle coloring for enhanced market insight
  • VWAP and Moving Average overlay
  • Customizable prediction parameters
  • Real-time updates with each new bar

 

Technical Components:

Volume-Price Correlation: The indicator analyzes the relationship between price movements and volume, Identifies stronger trends through volume confirmation and uses Volume-Weighted Average Price (VWAP) for price equilibrium

Trend Strength Analysis:

Calculates trend direction using exponential moving averages, weights trend strength by relative volume and incorporates momentum for improved accuracy

Prediction Algorithm:

combines current price, trend, and volume metrics, projects future price levels using weighted factors and generates confidence bands based on price volatility

Customizable Parameters:

Moving Average Length: Controls the smoothing period for calculations
Volume Weight Factor: Adjusts how much volume influences predictions
Prediction Periods: Number of bars to project into the future
Confidence Band Width: Controls the width of prediction bands

How to use it:

Look for strong volume confirmation with green candles, watch for prediction line slope changes, use confidence bands to gauge potential volatility and compare predictions with key support/resistance levels

Some useful tips:

Start with default settings and adjust gradually
Use wider confidence bands in volatile markets
Consider prediction lines as zones rather than exact levels

Best applications of this indicator:

Trend continuation probability assessment
Potential reversal point identification
Risk management through confidence bands
Volume-based trend confirmation

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