This indicator splits the volume bars into advancing and declining volume, based on an entire index or exchange. When advancing volume outweighs declining volume, the advancing volume will be shown bright green. When declining volume is higher, the declining volume will be shown bright red. This can help determine which direction the market is most likely to move, and it is useful for filtering the direction of trades to take.
This indicator also displays the force index, which measures the strength behind a move using price and volume. The horizontal line around which the force index fluctuates acts as a volume threshold, which is calculated based on the average volume per bar of the previous trading day. This can be used as a minimum volume that must be reached before entering a trade.
The base of each volume bar is either white or black, depending on whether volume is higher (white) or lower (black) than average. When volume is higher than average, price will likely trend. When volume is lower than average, price will likely move sideways.
A possible long entry signal is when advancing volume outweighs declining volume, volume is higher than average, and the force index crosses above the threshold. Sell signals are reversed. Alerts let you know when these conditions are met. There are also labels that show the total volume in the pre-market and the regular trading session. This indicator works with stocks, futures & ETFs that track stock indices on intraday time frames.