Weis modelius alerts

The Weis modelius alerts indicator provides a refined visualization of volume-based trend waves with integrated buy and sell signals based on price action reversals. It adapts the classic concept of Weis Wave volume by utilizing Renko-style assignment methods to identify directional shifts and aggregate volume accordingly.

Usage

The Usage section focuses on identifying trend direction through accumulated volume waves. When price moves beyond a calculated threshold (determined by the assignment method), a new wave begins.

• Trend Identification: Green columns represent bullish volume waves, while red columns represent bearish volume waves.
• Signals: The tool plots a 'B' character at the bottom of a new bullish wave and an 'S' character at the top of a new bearish wave, signaling potential entry points.
• Oscillation: By default, the indicator oscillates around a zero line, showing bearish volume as negative values. This helps traders visualize the magnitude of selling pressure versus buying pressure.
• Normalization: Users can normalize the volume output to average the volume over the duration of the wave, providing a smoothed perspective on activity.

Details

The script functions by calculating price movements relative to a "brick size" or threshold, similar to Renko charts. It offers three primary methods for determining this threshold: ATR, Traditional (fixed value), or a Part of Price (percentage-based). Once the price moves by the specified amount, a direction change is registered. During the life of a single trend direction, the volume is accumulated. When a reversal occurs, the accumulated volume resets and starts counting for the new direction. This allows traders to see which trends are backed by significant volume.

Settings

• Renko Assignment Method: Determines how the price threshold for a trend change is calculated (ATR, Traditional, or Part of Price).
• Value: The numerical input used for the selected assignment method (e.g., ATR period or fixed point value).
• Price Source: Choose between Close, Open/Close, or High/Low to determine the price points used for trend calculations.
• Use True Range instead of Volume: Option to substitute standard volume with True Range, useful for assets where volume data is unavailable.
• Oscillating: When enabled, bearish waves are plotted below the zero line.
• Normalize: When enabled, divides the accumulated volume by the number of bars in the wave to show average volume intensity.

FAQ

How do I interpret the buy and sell signals?

The 'B' (buy) signal appears when a bullish wave starts, and the 'S' (sell) signal appears when a bearish wave starts. These indicate a reversal in the trend direction based on your settings.

What is the best assignment method to use?

The ATR (Average True Range) method is often preferred for volatile markets as it adapts the threshold to current market conditions, whereas the Traditional method works well for those seeking fixed price movements.

How can I access this tool?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.