Volumetric Toolkit
By LuxAlgoSep 28, 2023
Volumetric Toolkit is a four-feature suite that reads price action through the volume behind it, from liquidity-built trading ranges to volume divergence detection. Everything rests on one premise: volume measures participants' interest in an asset, and that interest keeps shifting. Each feature isolates a different way unusual participation prints on the chart, and because volume data is required, symbols without it are not compatible.
How to Trade the Volumetric Toolkit?
- Ranges Of Interest: the high and low from a candle printed on a liquidity surge define a range whose extremities behave like support and resistance zones; a high-liquidity breakout from the range may signal continuation.
- Impulses: volume sets a new high while price prints a higher high (bullish, green) or lower low (bearish, red); an impulse against the prevailing trend can foreshadow reversal.
- Levels Of Interest: closing prices that coincided with volume peaks stay on the chart as classic support/resistance references.
- Volume Divergences: price presses to a fresh extreme while volume prints a lower high. Participation is thinning and the trend may be tiring.
Levels Of Interest and Volume Divergences adjust retrospectively (backpainting), so they serve better as analytical context than as real-time triggers.
Volumetric Toolkit Settings
- Show Ranges Of Interest / Length: toggles the ranges; higher lengths demand more volume before a new range prints.
- Show Impulses / Length: toggles impulses; longer settings keep only significant ones, pointing at longer-term reversals.
- Show / Length (Levels Of Interest): how many recent levels display and how sensitive detection is to volume events.
- Show Divergences / Length: toggles divergences and sets the period for recognizing price tops, bottoms, and volume peaks.
Frequently Asked Questions
Free on Vela
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- Up to 500 strategy alerts, with webhook automation
- Up to 10× the chart history of Free
- Orderflow lookback up to full history
- Up to 100,000 monthly credits for Quant to customize it
- Futures data alongside crypto, stocks, forex and commodities
Also works on
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