IZAKI 0.618 TRADING ZONE
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Modjoy-High Volume Points [BigBeluga]

Modjoy-High Volume Points [BigBeluga]

Unlocking Trading Potential with Modjoy-High Volume Points (BigBeluga): A Comprehensive Guide

In the realm of trading, identifying high-probability areas of market movement is crucial for maximizing returns. One such approach that has garnered attention in recent years is the Modjoy-High Volume Points (HVP) strategy, also known as BigBeluga. This article will delve into the core logic and trading strategy behind Modjoy-HVP, providing traders with a deeper understanding of how to leverage this approach to improve their trading outcomes.

Introduction to Modjoy-HVP (BigBeluga)

The Modjoy-HVP strategy is a technical analysis tool designed to identify areas of high trading volume, which can serve as potential support or resistance levels in the market. By analyzing volume data, traders can gain insights into market sentiment and identify areas where buyers or sellers are most active. The BigBeluga strategy is a specific implementation of Modjoy-HVP, which combines volume analysis with price action to provide a comprehensive view of market dynamics.

Core Logic of Modjoy-HVP (BigBeluga)

The core logic of Modjoy-HVP (BigBeluga) revolves around the idea that areas of high trading volume are likely to be significant in terms of market movement. The strategy employs a proprietary algorithm to identify these high-volume areas, which are then used to determine potential support or resistance levels. The logic can be broken down into the following components:

  • Volume Analysis: The strategy analyzes trading volume data to identify areas where volume is significantly higher than average. These areas are considered high-volume points (HVPs).
  • Price Action Analysis: The strategy examines price action in relation to the identified HVPs. This involves analyzing factors such as price movements, trends, and patterns to determine the likelihood of a support or resistance level being broken.
  • Combination of Volume and Price Action: The strategy combines the insights gained from volume and price action analysis to provide a comprehensive view of market dynamics. This enables traders to identify high-probability trading opportunities and make informed decisions.

Trading Strategy with Modjoy-HVP (BigBeluga)

The Modjoy-HVP (BigBeluga) strategy can be used in various trading scenarios, including trend following, range trading, and breakout trading. Here are some key aspects of the trading strategy:

  • Trend Following: Traders can use Modjoy-HVP to identify areas of high volume that coincide with the direction of the trend. This can serve as a confirmation of the trend's strength and provide opportunities for traders to enter or exit positions.
  • Range Trading: The strategy can be used to identify high-volume areas within a trading range, which can serve as support or resistance levels. Traders can then use these levels to enter or exit positions, depending on the direction of the trade.
  • Breakout Trading: Modjoy-HVP can be used to identify areas of high volume that may serve as a catalyst for a breakout. Traders can then use these areas to enter positions in the direction of the breakout.

Example Trading Scenario

Suppose we are trading the EUR/USD currency pair, and the Modjoy-HVP (BigBeluga) strategy identifies a high-volume point at the 1.1000 level. The price action analysis indicates that the price is approaching this level from below, and the trend is bullish. In this scenario, a trader may consider entering a long position at the 1.1000 level, with a stop-loss below the level and a take-profit above the level.

Conclusion

The Modjoy-HVP (BigBeluga) strategy offers a unique approach to trading by combining volume analysis with price action. By identifying areas of high trading volume and analyzing price action in relation to these areas, traders can gain insights into market dynamics and make informed decisions. While no trading strategy is foolproof, the Modjoy-HVP (BigBeluga) approach can be a valuable addition to a trader's toolkit, providing a competitive edge in the markets.

As with any trading strategy, it is essential to thoroughly backtest and validate the Modjoy-HVP (BigBeluga) approach before implementing it in a live trading environment. Additionally, traders should always use proper risk management techniques and combine the strategy with other forms of technical and fundamental analysis to maximize trading performance.

References

This article is for informational purposes only and should not be considered as investment advice. The Modjoy-HVP (BigBeluga) strategy is a proprietary approach, and the information provided in this article is based on publicly available data and research. Traders should always conduct their own research and consult with a financial advisor before making investment decisions.


Modjoy Exclusive Source Code:

MODJOY-HIGH VOLUME POINTS [BIGBELUGA] SOURCE CODE
// This work is licensed under Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International  

//@version=6
indicator('Modjoy-High Volume Points [BigBeluga]', overlay = true, max_polylines_count = 100, max_lines_count = 17, max_labels_count = 500, max_bars_back = 1000)


// =====================================================================================================================}
// INPUTS
// ====================================================================================================================={


//@variable Diameter of the circles
step = input.float(1, 'Diameter Of Circles', step = 0.1, group = 'Settings')

//@variable Volume threshold to filter points
filter_vol = input.float(2, 'Filter Points by Volume', step = 0.1, group = 'Settings', minval = 0, maxval = 6)

//@variable Number of bars to the left of the pivot
int leftBars = input(15, "Left Bars", group = "Points")
int rightBars = input(15, "Right Bars", group = "Points")

//@variable Option to show levels
show_lvl = input.bool(true, 'Show Levels', group = 'Visual')

// Define scaling factors
float xScale = 2.0
float yScale = 0.5 * ta.atr(500)

// Define colors
color upper_col = input.color(#fda05e, "", inline = "1")
color lower_col = input.color(#2fd68e, "", inline = "1")

// Dynamic width levels
int width1 = 0
int width2 = 0

// Initialize arrays for storing points and levels
var points = array.new()
var levels = array.new()


// =====================================================================================================================}
// CALCULATIONS
// ====================================================================================================================={

// Calculate pivot high and pivot low
ph = ta.pivothigh(leftBars, rightBars)
pl = ta.pivotlow(leftBars, rightBars)

volume_ = math.sum(volume, leftBars * 2)

// Calculate normalized volume delta
float vol = volume_


// Get min and max volume within the lookback period
min_vol = ta.lowest(volume_, 300)
max_vol = ta.highest(volume_, 300)

// // Normalize the volume between 0 and 6
// norm_vol = ((volume_ - min_vol) / (max_vol - min_vol)) * 6

reference_vol = ta.percentile_nearest_rank(volume_, 1000, 95)
norm_vol = volume_ / reference_vol * 5

check_cross(arrayOfLines) =>
    int qtyOfLines = array.size(arrayOfLines)

    for lineNo = 0 to qtyOfLines > 0 ? qtyOfLines - 1 : na by 1

        if lineNo < array.size(arrayOfLines)
            line currentLine = array.get(arrayOfLines, lineNo)
            float lineLevel = line.get_price(currentLine, bar_index)
            bool lineWasCrossed = math.sign(close[1] - lineLevel) != math.sign(close - lineLevel)

            if lineWasCrossed
                line.set_style(currentLine, line.style_dotted)
                array.remove(arrayOfLines, lineNo)
                int(na)
            else
                line.set_x2(currentLine, bar_index)
                int(na)

method draw_circle(bool src, int mult_x, int mult_y) =>
    points.clear()

    float angle = 0
    var float source = 0.
    var color color = na

    switch 
        src => 
    	    source := high[rightBars]
    	    color := upper_col
    	    color
        => 
    	    source := low[rightBars]
    	    color := lower_col
    	    color

    for i = 1 to 11 by 1
        int xValue = int(math.round(xScale * mult_x * math.sin(angle))) + bar_index - rightBars
        float yValue = yScale * mult_y * math.cos(angle) + source
        angle := angle + math.pi / 5

        points.push(chart.point.from_index(xValue, yValue))

    polyline.new(points, curved = false, line_color = color, fill_color = color.new(color, 90), line_width = 1)

//@function draw level.
method draw_level(float src, int n, width, color) =>
    line.new(x1 = n, y1 = src, x2 = n, y2 = src, style = line.style_solid, width = math.round(width / 3), color = color)


// =====================================================================================================================}
// PLOT
// ====================================================================================================================={

if last_bar_index - bar_index < 300

    // ————— Plotting logic for high pivots
    for i = 0 to 10 by 1
        condition = not na(ph) and norm_vol > i and norm_vol > filter_vol

        if condition and barstate.isconfirmed
            true.draw_circle(math.round(i * step), math.round(i * step))

            width1 := width1 + 1
            width1

    if not na(ph) and norm_vol > filter_vol and barstate.isconfirmed
        int n = bar_index - rightBars
        float src = high[rightBars]
        chart.point cp = chart.point.from_index(n, src)

        levels.push(src.draw_level(n, width1, upper_col))

        label.new(cp, textcolor = chart.fg_color, color = color.new(upper_col, 30), style = label.style_circle, size = size.tiny)

        label.new(cp, text = str.tostring(vol, format.volume), textcolor = chart.fg_color, color = color(na), style = label.style_label_down)

    // ————— Plotting logic for low pivots
    for i = 10 to 0 by 1
        condition = not na(pl) and norm_vol > i and norm_vol > filter_vol

        if condition and norm_vol > filter_vol and barstate.isconfirmed
            false.draw_circle(math.round(i * step), math.round(i * step))

            width2 := width2 + 1
            width2

    if not na(pl) and norm_vol > filter_vol and barstate.isconfirmed
        int n = bar_index - rightBars
        float src = low[rightBars]
        chart.point cp = chart.point.from_index(n, src)

        levels.push(src.draw_level(n, width2, lower_col))

        label.new(cp, textcolor = chart.fg_color, color = color.new(lower_col, 30), style = label.style_circle, size = size.tiny)

        label.new(cp, text = str.tostring(vol, format.volume), textcolor = chart.fg_color, color = color(na), style = label.style_label_up)


// Check and update crosses
check_cross(levels)

// Clean up lines if levels are not shown
a_allLines = line.all
if array.size(a_allLines) > 0 and not show_lvl
    for i = 0 to array.size(a_allLines) - 1 by 1
        line.delete(array.get(a_allLines, i))

// =====================================================================================================================}


⚠️ High Risk Warning

Trading Forex and Futures involves a very high degree of risk and may not be suitable for all investors. The high degree of leverage can result in the complete loss of your funds. These indicators are educational tools and do not guarantee profits. Please trade responsibly with capital you can afford to lose.