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L5 Color Coded Volume (CCV) is a cutting-edge technical analysis tool that completely revolutionizes the traditional volume bar chart through a complex color coding system. This multifaceted tool is carefully crafted to provide traders with a deep understanding of market dynamics, empowering them with the confidence to make strategic decisions. By intuitively identifying key volume patterns and interpreting their meanings, L5 CCV changes the way traders perceive and interact with market data. 🌈Color Coded Volume (CCV) has perfectly mastered gray sawtooth volume🤼♂️. Friends, click on the TradingView page link below, leave your paw print🐾 to try this perfect tool!
![[blackcat] L5 Color Coded Volume (CCV) — Indicator by blackcat1402](https://static.tradingview.com/static/images/favicon/apple-touch-icon-180x180.png?t=18119812-7cf2-4f74-b88a-b2a9b12378cc){kind=icon}
![[blackcat] L5 Color Coded Volume (CCV) — Indicator by blackcat1402](https://s3.tradingview.com/v/Vd5zgzJN_big.png?t=18119812-7cf2-4f74-b88a-b2a9b12378cc)
Detailed Key Features and Color Interpretation of L5 Color-Coded Trading Volume
- Climax Volume Rising (Red🟥**)**: This unique pattern is characterized by high trading volume, a wide price range, and an upward trajectory of the bar chart. The red color strategically conveys the urgency and vitality of the market, as this pattern symbolizes a surge in buying demand, pushing prices to new highs. Climax Volume Rising bar charts are key indicators of the market transitioning from a volatile state to a clear upward trend. They often appear at the beginning of rising trends, during the decline of these trends, and within the pullback framework in downtrends. The appearance of these bar charts demonstrates buyers' enthusiasm for participating in the market, often leading to a rapid and significant rise in prices.
- Climax Volume Falling (White⬜️**)**: The Climax Volume Falling pattern is the direct counterpart to the Climax Volume Rising, with the main difference being the direction of price movement. This pattern is characterized by high trading volume and a wide price range, but is associated with the downward movement of the bar chart. Presented in white, it signifies a significant increase in selling pressure, forcing prices to plummet. These bar charts are typical signs of the beginning and end of downtrends, as well as pullback scenarios in uptrends. The appearance of Climax Volume Falling bar charts often reflects sellers' urgency to liquidate positions, which may lead to a sharp drop in prices.
- High Volume Churning (Green/Acid Green🟩**)**: This pattern is characterized by significant trading volume occurring within a relatively small price range. Green and acid green are used for the volume bar charts, encapsulating scenarios where market participants engage in intense trading activity, but price progression is minimal. High Volume Churning is a phenomenon that repeatedly appears at the end of rising and falling trends and during the profit-taking stages of trends. It implies a market tug-of-war, with new supply entering at high prices and demand emerging as prices drop, resulting in a stalemate in price progression. These bar charts can be likened to the market's "brakes", potentially triggering a market pause or trend reversal.
- Low Volume (Yellow🟨**)**: Low Volume bar charts are marked with unobtrusive yellow, defined by the lowest trading volume in the previous 20 bar charts. This pattern is symptomatic of waning market interest, attributable to a lack of buying demand at high prices or scarcity of selling supply at low prices. Low Volume bar charts are a common sight at the end of rising and falling trends and within pullback contexts. Traders value these bar charts as confirmatory signals of trend direction changes, particularly effective when detecting key support or resistance thresholds in the market.
- Climax Volume plus High Volume Churning Rising (Magenta🟪**)**: The fusion of Climax Volume Rising and High Volume Churning conditions, supplemented by rising trend prices, is manifested as magenta bar charts. This unique blend indicates a market environment with considerable price volatility during an upward trend. The appearance of magenta bar charts is a powerful indicator of sustained buying pressure, suggesting that the upward trend may continue. Conversely, it may also serve as a warning sign, foretelling an impending trend reversal.
- Climax Volume plus High Volume Churning Falling (Gray⬜️**)**: Similarly, the combination of Climax Volume Falling and High Volume Churning conditions synchronizes with falling trend prices, represented by gray-shaded bar charts. This pattern demonstrates strong selling activity and significant price volatility in a downtrend. Gray signifies a market surrounded by powerful selling pressure, implying the potential for trend continuation or heralding an upcoming trend change.
L5 CCV Fast and Slow Lines: An In-depth Analysis
L5 CCV introduces the concept of fast and slow lines to enrich its volume analysis, providing traders with a more refined perspective on market momentum and volume trends. The fast line is symbolized by the vibrant color of orange, while the slow line is presented in the calm tone of blue, aiming to reveal the potential trends of market activity. These lines intricately interweave with each other, forming a complex yet revealing relationship, which may eventually lead to the formation of a "Golden Cross" or "Death Cross".
- Golden Cross (Orange line 🟧 above the Blue line 🟦): A Golden Cross is a significant event that occurs when the fast orange line crosses north, surpassing the slow blue line. This pattern is filled with bullish implications, closely tied to a surge in trading volume and price increase. The Golden Cross is a strong signal, implying that the market is accumulating upward momentum, buyers are in control, and may drive the price to higher levels.
- Death Cross (Blue line 🟦 above the Orange line 🟧): Conversely, a Death Cross appears when the slow blue line rises above the fast orange line. This pattern usually carries bearish implications, signifying a decrease in trading volume during a price decline. The Death Cross is often interpreted as a bearish omen, signaling potential selling pressure and the shadow of a market decline.
While the fast and slow lines of L5 CCV do not explicitly show the direction of price movement, they serve as a precise lens for traders to discern subtle changes in market transaction volume. By vigilantly observing the interplay between these lines, traders can identify emerging changes in market transaction volume, which may presage fundamental changes in market sentiment or the onset of new trends.
In summary, color-coded volume, with its vibrant color palette and a comprehensive range of patterns, becomes an indispensable ally for traders to enter the dynamic and complex maze of the market. By systematically analyzing these volume patterns, traders can extract key insights into the covert forces driving market movements, thereby enhancing their ability to foresee key market turning points, interpret the subtle balance of supply and demand, and ultimately formulate wise and strategic trading decisions.
Contact Information
📞 If you have any questions, or want to understand the %B indicator in more depth, you can contact me through the following methods:
- TradingView personal page: [Trader blackcat1402 — Trading Ideas & Charts]
- WeChat Public Account: Scan the QR code below 👆
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Membership Privileges
🌟 By joining the Blue Cat Membership Club, you will receive a series of exclusive benefits, including but not limited to:
- Advanced metrics usage privileges at OKX Exchange
- Fee discounts
- Participation in beta testing and improvement of the trading system
- Exclusive right to use trading strategies and tools
For more details, you can visit my blog post: [Blue Cat Membership Club Invites You to Win Together]
Register and trade once on the OKX exchange using this cat's invitation code, once a year, one indicator for 6 months, for those who trade more, contact the author to open more privileges. Opening an account with OKX can get you: a permanent cashback of 10% on spot contracts, 20% off on handling fees, permanent access to advanced indicators as a green cat member, free internal testing of advanced trading systems, exclusive services such as member technical indicator development etc. Exclusive invitation to register on OKX (overseas, requires a ladder) via blackcat1402's link:
You can refer to my blog for a detailed introduction to the member:
- Introduction to TradingView Version
🚀 Through TradingView Chat, you can communicate with me in real time to get the latest trading strategies and market analysis. Here is my TradingView personal page link: Trader blackcat1402, come join our trading community!
OKX Automatic Trading Robot Customization Options
🤖 Currently, we do not support customization options for the OKX automatic trading robot. However, we will continue to pay attention to market demand and feedback, and may launch related services in the future. Stay tuned!
Is there a video explanation
🎥 There is no video explanation yet, but we are planning to produce a series of instructional videos to help everyone better understand and use the %B indicator. Stay tuned!
Related Links
- If you want to get more information about the %B indicator, or have other trading-related questions, you can contact me through the following link:
[Contact on this cat's blog]
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- Author:blackcat1402
- URL:https://www.tradingview.com/u/blackcat1402//article/tv-ccv-en
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