Volume & Configurable Moving Averages

The Volume & Configurable Moving Averages indicator provides timeframe-adaptive volume analysis by overlaying customizable moving averages that automatically adjust based on daily or weekly chart periodicities to highlight liquidity trends.

Usage

The Usage section describes how the script can be used to identify volume spikes and trend strength. By default, when viewing a daily chart, the indicator plots a 50-period moving average to represent medium-term volume trends. When the user switches to a weekly chart, the indicator automatically adjusts to a 10-period moving average.

Traders can use this tool to confirm price movements; for example, a price breakout accompanied by volume crossing above the moving average suggests strong market conviction. The visual style of the volume bars can be modified to reflect either "up/down" days relative to the previous close or the current candle's internal price action (close vs. open).

Details

The script is constructed using Pine Script v6 and utilizes conditional logic to switch between moving average lengths. The variable currentMa uses the timeframe.isdaily check to determine whether to apply the dailyLength or weeklyLength input to the ta.sma calculation.

The coloring logic is modular: if "Color based on previous close?" is selected, the script compares close to close[1]. If unselected, it compares close to open. Additionally, the script includes a built-in alert condition triggered by a ta.crossover between the volume and the active moving average, optimized for bar-close frequency.

Settings

• Daily MA length: Sets the lookback period for the Simple Moving Average (SMA) used specifically on daily timeframes.
• Weekly MA length: Sets the lookback period for the Simple Moving Average (SMA) used specifically on weekly timeframes.
• Width of volume bars: Controls the visual thickness of the histogram bars on the chart.
• Color based on previous close?: A toggle to determine the bar coloring logic. Enabling this uses the previous bar's close as a reference, while disabling it uses the current bar's open.

FAQ

How does the moving average automatically switch? The script detects the chart's timeframe settings. If the chart is set to a daily interval, it applies the daily length setting; otherwise, it defaults to the weekly length setting for higher-tier periodicities.

Can I receive notifications when volume spikes? Yes, the script includes a built-in alert function that triggers when the current volume crosses above the plotted moving average line.

How do I access Volume & Configurable Moving Averages? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.