Normalized Volumes Indicator
When looking at the volume information that moves the market, a question arises: is it a strong or weak movement? Should it be compared with previous days? These data should be normalized to always have a reference.
This indicator reports the market volume normalized between 0-100 values.
- It has a line that smoothes the main signal (EMA).
- The normalization of values occurs within an interval defined by user (21 bars on default).
- User can also define any relative maximum, timeframe and number of bars to calculate.
Calculation: volNorm = (volReal - absMin) * (relMax - relMin) / (absMax - absMin) + relMin
Pay attention to the signal line on the chart (M1, period 55, signal 12): the price increase is preceded by a phase, in which the volumes are below 50 and the price increase is preceded by an increase in volumes in zone 75.