Daily Volume Ratio Bands (20MA)

Daily Volume Ratio Bands (20MA) — by CryptoDaily

This indicator normalizes daily trading volume against the recent 20-day moving average (20MA) and plots it as a volume ratio.
It allows traders to quickly identify whether current volume is strong, weak, or within a normal range compared to historical averages.


Key Features

Normalized volume ratio with 20-day average = baseline (1.0)

Clear bands for easy interpretation (1.0 ~ 1.3 = normal, above = overheated, below = weak)

Intuitive color coding:
🟨 Yellow: Normal range (1.0 ~ 1.3)
🔵 Blue: Above 1.3× average (high/strong volume, breakout confirmation)
⚪️ Gray: Below average (low volume)
🔴 Red: At or below 0.7× (extremely low volume / lack of interest)


How to Use

Breakouts with strong volume (Blue) → higher confidence in trend continuation

Gray/Red during consolidation → signal of weak momentum or sideways phase

Quickly assess whether the market is in overheated or low-activity conditions


Notes

Designed for Daily timeframe (1D) only. It will not function properly on intraday charts.

For educational purposes only. This is not financial advice.


Author

CryptoDaily (YouTube & TradingView)

YouTube channel: cryptodaily_tv