What Is a Volume Comparator?
Volume Comparator is a powerful and easy-to-use tool that allows you to compare the trading volume of financial assets given a time period with adjustable parameters. This is a great way to identify trading opportunities and make better-informed decisions.
How To Use Volume Comparator
In order to use Volume Comparator, you will need to define a given time period and set adjustable parameters. For example, on the 1-hour chart for the BTCUSDT pair, while candle volumes routinely change, it is seen that a sudden volume increase occurs very sharply. The same scenario can be observed for the decline.
The average volume of the candles before the sudden volume spike can be determined. For example, the average of the last 15 candles is 6000 BTC, and the closing value of the candle where the spike occurred was approximately 285.000 BTC, then the volume was 47 times higher than the average.
In the strategy designer, you can design for the situation where this average is suddenly increased, for example by 5 times. In the case of the BTCUSDT pair on the 1-minute chart, there has been an increase of close to 6% from the point where the average of the last 15 candles instantaneously increased 5 times.
Configuration on Traderlands
When the setting button of the tool found as "Volume Comparator" in the indicator list is clicked, a screen like below will appear. It is necessary to specify a period and multiplier. In the example, the configuration required for situations where we want the last 15 candles to be greater than 5 times will be as follows.
On the screen, the setting of "Period" to 15 and "Multiplier" to 5 should be made on the left side.
After making the adjustment on the left side, it is necessary to select the ">" (greater) operator in the "Value" section from the operator.
Key Points
When comparing the volume, the bid volume and the ask volume are added one after the other. Along with the increase in volume, additional rules should be added to determine whether the direction of the candle is up or down. For example, this direction can be determined with a rule such as Candle Change % > 0 or with different indicator intersections.
We recommend that you use your strategy after testing it using the Live Test and Backtest tools.
With the Volume Comparison indicator, analysis such as detecting sudden increases or decreases in the volume of data is possible.