Code Snippet – Normalized Volume

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)

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

What is QuantZilla?

Quantzilla is 75+ hours of code mentoring program designed for noncoders who want to learn the coding program right from designing indicators, scanners, trading...

Things to Consider While Building a Bracket Order Execution…

Building a Bracket Order Strategy is the most demanded request we got from most of the algomojo traders. This article explains the list of...

PlaceOrder – Multi Broker Exectuion Code Snippets for Amibroker

This tutorial explains how to build a button trading right from scratch and with a click of a button how you can send orders...

4 Replies to “Code Snippet – Normalized Volume”

1. Raghunath says:

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)

1. Normalized Volume Greater than 150 is High Volume.
Nomalized volume between 75 and 150 is Normal Volume.

2. kapil says:

how to view bid/ask lines, spread in ami broker like in mt4

3. kaushlendra shukla says:

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.