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What is transaction volume?
Trading volume refers to the total number of specific transactions in a certain period of time, and trading volume is a manifestation of supply and demand, which refers to the number of transactions at a certain price in a unit of time. When the supply is in short supply, the crowd is surging, and they all want to buy, and the transaction volume will naturally increase; on the contrary, if the supply exceeds the demand, the market is deserted, and the buying interest is scarce, and the transaction volume is bound to shrink.
Volume Profile
Volume Profile is a classic volume profile indicator, which can intuitively display the volume corresponding to each price for a period of time on the chart, helping people determine where more people buy and where less people buy.
The Volume Profile indicator is widely used in foreign exchange, stock, futures, digital currency and other trading markets. It is an extremely versatile technical indicator and has a very intuitive use value;
The picture comes from the Internet (if there is any infringement, please contact customer service Little Squirrel, VX: viquant01)
Important combined parts of Volume Profile metrics:
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Value Area (referred to as VA value area): the price area where 70% of the trading volume is distributed
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POC : is the control point, the price with the largest trading volume;
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HVN: High volume area represents price acceptance zone, above average
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LVN: The low volume area is the price rejection zone, below the average level;
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VAH: the highest price in the VA area;
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VAL: the lowest price in the VA area;
Build a trading strategy:
We introduced the volume and Volume Profile (volume distribution) indicators above. We use the core part of the Volume Profile, the VA area, VAH, and VAL to build a trading strategy. SF11 is implemented using TB software, and the implementation of some of the algorithms is a bit difficult, using FOR loops and arrays.
Core Computing:
1. Build a volume collection
2. Calculate POC;
3. VA value area;
4. Calculate VAH, VAL;
Code explanation:
1. The first step is to define the volume set, and save the volume we need to calculate into an array for later use;
2. The second step is to calculate MaxVOL and POC:
3. The third step is to calculate the VA core area:
4. The fourth step calculates VAH and VAL:
PS: There are still many code details that have not been shown. Interested friends can study the source code after obtaining it;
TB Portfolio Performance:
Thread:
Coke:
crude:
egg:
Mandarin wh9 version:
WH8 cannot implement this strategy. The writing syntax and function library of Wenhua wh9 and TB are very similar. The following is a screenshot of the source code of the wh9 version;
Thread:
Only the thread is shown here, and interested friends can test other varieties after modification according to the parameters of TB;