From TradersList Editors
From TradersList Editors
Spot trading opportunities with this free indicator by identifying bullish and bearish divergences between price and volume movements.
Spot trading opportunities with this free indicator by identifying bullish and bearish divergences between price and volume movements.
Price Volume Divergence Indicator for ThinkOrSwim: Detect Bullish and Bearish Volume Discrepancies
Price Volume Divergence Indicator for ThinkOrSwim: Detect Bullish and Bearish Volume Discrepancies

by benten on ThinkOrSwim

by benten on ThinkOrSwim
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Price Volume Divergence Indicator For ThinkOrSwim
Price Volume Divergence Indicator For ThinkOrSwim
The Price Volume Divergence Indicator for ThinkorSwim detects bullish and bearish divergences in price and volume, signaling potential market reversals.
The Price Volume Divergence Indicator for ThinkorSwim detects bullish and bearish divergences in price and volume, signaling potential market reversals.

Get on ThinkOrSwim
This indicator is available on ThinkOrSwim charting platform. Signing up for a free account and downloading ThinkOrSwim software is required.

Get on ThinkOrSwim
This indicator is available on ThinkOrSwim charting platform. Signing up for a free account and downloading ThinkOrSwim software is required.
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Listing has publically available source code that can be audited and modified as needed.
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Listing has publically available source code that can be audited and modified as needed.
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All features of this listing are fully free to use with no pricing tiers. Simply start using.
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Publisher of this listing is well recognized in social channels and receives overwhelmingly positive feedback.
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Popular Topic
Concepts and theories mentioned in listing are popular topics in web search
Published by benten on ThinkOrSwim
Published by benten on ThinkOrSwim
What Price-Volume Divergence Reveals
Price-volume divergence occurs when price moves in one direction while volume moves in the opposite. For example, if a stock rallies to new highs but volume is declining, it suggests fewer participants are driving the move. This weakening conviction often precedes a reversal, giving traders an early warning signal.
Bullish and Bearish Divergence Detection
The indicator identifies both bullish and bearish divergences automatically. A bullish divergence forms when price makes lower lows but volume makes higher lows - suggesting accumulation. A bearish divergence forms when price makes higher highs but volume fails to confirm - suggesting distribution by larger players.
What Price-Volume Divergence Reveals
Price-volume divergence occurs when price moves in one direction while volume moves in the opposite. For example, if a stock rallies to new highs but volume is declining, it suggests fewer participants are driving the move. This weakening conviction often precedes a reversal, giving traders an early warning signal.
Bullish and Bearish Divergence Detection
The indicator identifies both bullish and bearish divergences automatically. A bullish divergence forms when price makes lower lows but volume makes higher lows - suggesting accumulation. A bearish divergence forms when price makes higher highs but volume fails to confirm - suggesting distribution by larger players.
Why Volume Confirms or Denies Price Moves
Volume is the fuel behind price movement. A breakout on heavy volume is far more reliable than one on thin volume. This indicator quantifies that relationship, flagging moments where the price trend and volume trend disconnect. These disconnects are statistically more likely to result in trend changes or pullbacks.
Integrating Divergence Into a Trading Plan
Traders typically use this indicator as a filter rather than a standalone signal. When a bearish divergence appears at a resistance level, it strengthens the case for a short. When a bullish divergence shows up at support, it favors a long. Pairing divergence with key levels and candlestick patterns improves trade quality.
Why Volume Confirms or Denies Price Moves
Volume is the fuel behind price movement. A breakout on heavy volume is far more reliable than one on thin volume. This indicator quantifies that relationship, flagging moments where the price trend and volume trend disconnect. These disconnects are statistically more likely to result in trend changes or pullbacks.
Integrating Divergence Into a Trading Plan
Traders typically use this indicator as a filter rather than a standalone signal. When a bearish divergence appears at a resistance level, it strengthens the case for a short. When a bullish divergence shows up at support, it favors a long. Pairing divergence with key levels and candlestick patterns improves trade quality.
Price/volume divergences to detect reversals
Price/volume divergences to detect reversals
This indicator automatically detects when price and volume move in opposite directions. Bullish divergences form when price makes lower lows but volume shows higher lows; bearish divergences appear when price makes higher highs without volume confirmation.
This indicator automatically detects when price and volume move in opposite directions. Bullish divergences form when price makes lower lows but volume shows higher lows; bearish divergences appear when price makes higher highs without volume confirmation.
Spot Volume Discrepancies
Automatic detection flags when volume fails to confirm price direction, highlighting moments where conviction may be weakening.
Simplify Divergence Analysis
The indicator handles divergence calculations automatically, removing the need to manually compare price and volume swings.
Recognize Weakening Trends
Divergences between price and volume often precede reversals, providing early warning that the current trend may be exhausting.
Common Questions About Price-Volume Divergence Analysis
Common Questions About Price-Volume Divergence Analysis
Price-volume divergence identifies when price movement lacks volume confirmation, often warning of potential reversals. These questions address divergence interpretation and practical trading applications.
Price-volume divergence identifies when price movement lacks volume confirmation, often warning of potential reversals. These questions address divergence interpretation and practical trading applications.
What does it mean when price rises but volume declines?
Rising price with declining volume suggests weakening conviction in the move. Fewer participants are driving price higher, indicating potential exhaustion. This bearish divergence often precedes pullbacks or reversals as buying interest fades.
How long can price continue moving against volume divergence?
Divergence is a warning, not an immediate reversal signal. Price can continue against divergence for extended periods, especially in strong trends. Use divergence to raise caution and tighten risk rather than immediately counter-trading the trend.
Should I trade divergence signals alone or wait for confirmation?
Divergence alone produces many premature signals. Wait for price action confirmation like structure breaks, reversal candles or momentum shifts. Divergence identifies potential, confirmation provides timing. Combining both improves signal quality significantly.
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Web sentiment
Web sentiment
Traders express overwhelmingly positive feelings about the Price Volume Divergence Indicator for ThinkorSwim, valuing its usefulness, customization, ease of use, and visual clarity.
Traders express overwhelmingly positive feelings about the Price Volume Divergence Indicator for ThinkorSwim, valuing its usefulness, customization, ease of use, and visual clarity.
Source: Online Discussion
Source: Online Discussion
Source: Online Discussion
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TradersList Reviews (4)
TradersList Reviews (4)
TradersList Community has given this listing three stars, indicating decent trust and value for traders' toolkit. Make sure you understand functionality before using.
TradersList Community has given this listing three stars, indicating decent trust and value for traders' toolkit. Make sure you understand functionality before using.
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Source: TradersList Reviews
Source: TradersList Reviews

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