Bid/Ask Volume Oscillator (Estimated)

Bid/Ask Volume Oscillator (Estimated)

Overview

The Bid/Ask Volume Oscillator (Estimated) is a Pine Script v6 indicator for TradingView, designed to analyze market pressure through a normalized bid/ask volume oscillator. Displayed as a smoothed oscillator with optional split volume columns, it highlights buying and selling pressure with customizable zones and gradient intensity. Custom normalized scoring ensures consistent cross-asset use. Divergence detection and a heads-up display (HUD) table provide additional insights, making it commonly used for reviewing volume-driven momentum markers/labels.

How It Works

The indicator splits each bar’s volume into bid and ask components based on the candle’s body share (math.max, syminfo.mintick), with a 50/50 split for doji candles—to balance neutral bars in pressure calcs. Rolling sums of bid and ask volumes are calculated over a user-defined lookback (default: 5 bars) using ta.cum. The pressure oscillator is computed as the smoothed difference (ask minus bid) divided by their sum (ta.ema, default: 5 periods), normalized between -1 and +1. Gradient intensity adjusts opacity based on volume relative to a 20-period SMA and previous bar. Divergences are detected by comparing price pivots (ta.pivothigh, ta.pivotlow) with oscillator pivots. The HUD table shows pressure direction and ask share percentage.

Key Features

• Pressure Oscillator: Displays normalized ask-minus-bid pressure with customizable smoothing.
• Split Volume Columns: Optionally plots bid/ask volumes with mirroring below zero.
• Gradient Intensity: Adjusts opacity based on volume strength for enhanced visuals.
• Divergence Detection: Identifies bullish and bearish divergences between price and oscillator pivots.
• Zone Thresholds: Highlights mild (±0.2) and strong (±0.4) pressure zones with background coloring.
• HUD Table: Summarizes pressure direction and ask share percentage.
• Customizable Settings: Adjust lookback, smoothing, thresholds, and colors for tailored analysis.

What It Displays

This indicator offers a unique approach to volume analysis by combining a normalized pressure oscillator with split volume visualization and divergence detection, delivering balanced insights across symbols via uniform -1/+1 scale. Its customizable zones and HUD table make it adaptable for day trading, scalping, or swing trading in stocks, forex, futures, or crypto.

Originality

This indicator is an original Pine v6 implementation using TradingView’s built-in ta.cum, ta.sma, ta.ema, ta.pivothigh, and ta.pivotlow functions.

Common Ways People Use It

• Day traders reviewing real-time pressure and momentum markers/labels.
• Scalpers studying short-term volume-driven setups.
• Technical analysts identifying divergence-based reversals.

Configuration Notes

Configure the volume sum lookback (default: 5 bars), oscillator smoothing (default: 5), and mild/strong zone thresholds (default: 0.2/0.4). Enable/disable split columns, divergence labels, or gradient intensity to suit your chart. Use the oscillator, zone highlights, and HUD table to identify buying/selling pressure and potential reversals.

Legal Disclaimer

These indicators are for informational and educational purposes only—not investment, financial, or trading advice. Past performance is not indicative of future results; trading involves high risk of loss. Provided "as is" with no warranties. Consult a qualified professional before decisions. By using, you assume all risk and agree to this disclaimer.