Studying the Volume behaviour in a stock and index futures plays a critical role in studying the supply and demand behavior. What if we want to rate the volume with relative to last 50-bars. In such a scenario Normalized Volume Comes into picture. Normalized volume is a volume divided by its average.
Formula
Normalized Volume = Volume / MovingAverage(Volume, 50) * 100
When,
Normalized Volume > 150 is High Volume (Green Historgram bar)
Normalized Volume < 75 and > 150 is normal Volume (Yellow Historgram bar)
Normalized Volume < 75 is low volume (Red Historigram bar)
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Generally when the normalized volume is high it introduces lots of volatility in the market. And typically a low volume shows a low volatile behavior in the market.
Amibroker AFL Code
https://gist.github.com/0047f7a5fb7933187bd3
Small mistake in the text
Normalized Volume 150 is normal Volume (Yellow Historgram bar)
It should be Normalized Volume > 80 and < 150 is normal Volume (Yellow Historgram bar)
Normalized Volume Greater than 150 is High Volume.
Nomalized volume between 75 and 150 is Normal Volume.
how to view bid/ask lines, spread in ami broker like in mt4
sir i want afl code for current volume bar greater than previous 15 bars – strong volume
current volume bar greater than previous 20 bars – stonger volume
current volume bar greater than previous 40 bars- strongest volume.. i want this code for scanning purpose and alert output…. your help will be highly appreciated… and any change in this logic, if you find that better pls also provide it.