//
// Enhanced Volume Pocket Pivot
// Version 1.0
// Author : TeamOne (https://www.prorealcode.com/user/teamone/)
// Date : 2022/04/02
//
// This indicator identifies different interesting configurations
// on volumes and especially on the appearance of "pocket pivots".
// As describe by Gil Morales et Chris Kacher in their book "Trade like an O'Neil disciple" ,
// a "pocket pivot" volume is an up day volume that is greater than the highest down volume day of the last 10 down days.
//
// Also this indicator try to identify "distribution day" and can help to regnonize instutionnal selling.
// O’Neil referred to these days as " heavy volume, without further price progress higher. ".
// I use these criterias to identify them : price drop greater than 0.2 % on heavier volume than the prior day
// Clusters are more relevant than a ditribution day here and there.
// When the bar count reaches 5-7 be on guard. Note that price can continue uptrends even with an elevated distribution bar counts.
// Also closing range matters
// Distribution days are erased when price index rises 5% from a ditribution day
// or after 25 trading days have passed.
//
//
// Disclaimer : this indicator is not a buying signal, it simply gives a sense of institutional buying or selling pressure and must imperatively be
// analyzed according to many others parameters (trend, price, stage, stock fundamentals...)
//
// Here is the meaning of the different graphical elements rendered by this indicator :
// Green bars : 10 day pocket pivots
// Blue bars : 5 day pocket pivots
// Dark gray bars : dow volume days bars
// Light gray bars : up volume days bars
// Red bars : distribution bars
// Orange line : average volume over the last 50 days.
// Orange Down Arrows on average line : dry volume < 45 % of the 50 days average volume
//
//
avgVolume = Average[50](Volume)
// is current bar a 10 days pocket pivot ?
isPP10 = Close > Close[1] AND Volume > ABS(Close[1] < Close[2]) * Volume[1] AND Volume > ABS(Close[2] < Close[3]) * Volume[2] AND Volume > ABS(Close[3] < Close[4]) * Volume[3] AND Volume > ABS(Close[4] < Close[5]) * Volume[4] AND Volume > ABS(Close[5] < Close[6]) * Volume[5] AND Volume > ABS(Close[6] < Close[7]) * Volume[6] AND Volume > ABS(Close[7] < Close[8]) * Volume[7] AND Volume > ABS(Close[8] < Close[9]) * Volume[8] AND Volume > ABS(Close[9] < Close[10]) * Volume[9] AND Volume > ABS(Close[10] < Close[11]) * Volume[10]
// is current day price above last day price ?
isAnUpDay = Close > Close[1]
// is current day a distribution day ?
closeLocationValue = ((Close-Low)-(High-Close))/(High-Low)
//A value of zero would mean that the price closed halfway between the high and low of the range.
// A value of +1 means the close is equal to the high of the range.
// A value of -1 means the close is equal to the low of the range.
evolClose = ((Close-Close[1])/Close[1])
isDistributionDay = Volume > avgVolume and evolClose<-0.002 and closeLocationValue<0
// colors definition
r=0
g=0
b=0
// 10 day pocket pivot bar : green bar
if isPP10 then
r=0
g=255
b=0
// distribution day bar : red bar
elsif isDistributionDay then
r = 206
g=83
b=86
// up volume day bar : light gray bar
elsif isAnUpDay then
r=192
g=192
b=192
// donw volume day bar : dark gray bar
else
r=130
g=130
b=130
endif
// Dry volume : display down arrow in case of volume less than 45 % of the 50 days average volume
avgVol45 = 0.55 * avgVolume
Segnale = 0
if(Volume <= avgVol45) then
//drawtext("▾",barindex,avgVolume, dialog,bold,20)coloured("LightCoral")
Segnale = 1
endif
if r and g and b then
endif
//return Volume Coloured(r,g,b) style(histogram) AS "Enhanced Volume Pocket Pivot",avgVolume coloured(255, 127, 39) style(line) as "50 Days Average Volume"
SCREENER[Segnale]
.
