Volume Block - This block is a "conditional block" that is triggered when the volume moves against its moving average (MA) according to a set criteria.
Reminder of the basics
Volume in trading represents the amount of securities traded during a period (unit of time). It can be used to measure the volume of transactions or securities traded at each candle on a stock chart. Particularly useful to detect peaks of activity and interest on an asset.
In the parameters of the block, you can select the conditions that will drive its triggering.
When the volume is located allows you to specify the triggering condition of the block, i.e. the position of the volume in relation to the moving average:
- Above: The observed volume must be above the moving average.
- Below: The observed volume must be below the moving average.
Analysis period and length: allow you to define respectively the time unit and the number of candles that will constitute the moving average on which the volume will be studied.
The "by at least" field allows you to specify the percentage threshold (%) separating the volume from its moving average.
Finally, the "volume calculation mode" allows you to define when and with which data the volume is to be analyzed.
- or in Real Time: the volume is reaggregated and compared in real time without waiting for the end of the candle (current value). It is therefore analyzed every second.
- or by closing the candle: the volume is compared only when the candles are closed. This option is less reactive but avoids false positives.
In the figure below, we can see that the moving average is set to 20 candles (A). When the volume value (B) at the close of the candles exceeds the MA value by more than 300%, the block is triggered and the strategy places a buy order via the BUY block.