PSAR ADX Volume Trend Indicator

This custom indicator uses and considers various criteria, based on several other indicators, to
produce long/buy and short/sell signals. These are the PSAR, ADX, EMA, VZO, ATR and
VWMA cloud. In addition it includes a CCI Trend as a visual aid to help with stoploss.

Parabolic SAR

The PSAR identifies points of potential stops and reverses, hence the SAR in the name. This is
displayed as a dotted line above or below the price. Below the price is considered bullish,
above the price is bearish.

The script looks for a flip between either condition. The version of the PSAR in this script is a
customised one with 2 different modes and a slight smoothing algorithm.
ADX

The Average Directional Index (ADX) determines the strength of a trend. By default the script
looks for a reading above 20 to determine a strong enough trend. This is called the entry level
filter.

With this script you can also choose to colour the bars according to if the ADX indicates a strong
enough trend or not.
Trend EMA

This is a normal Exponential Moving Average, by default set at 100 periods. Within the script it
is colour coded to indicate if the price is above and bullish or below and bearish.

Typical values can be from an aggressive 50 periods up to and beyond a conservative 200
periods, depending on your preferred trading style and timeframe.
VZO

The Volume Zone Oscillator is somewhat similar to the OBV in the way it calculates volume,
although as opposed to the OBV, the VZO takes into account time in its calculation and results
in an oscillator.

With the VZO a value above 15 is considered bullish and below - 5 is considered bearish.

For more information on the VZO - and its accompanying PZO see:

HGSI with Dave Steckler, VZO-PZO Oscillators - Jan 30, 2014

ATR Breakout / VZO ATR

The ATR (average true range) shows the volatility in the market over a set number of periods. In
the ATR breakout system implemented in this script that period is 14. The script then calculates
a 10 period EMA of that ATR value.

A volatile market is considered when the ATR breaks above the EMA value. The ATR is non
directional, and therefore the system uses the other metrics to determine trade direction.
VWMA Cloud

As a secondary source of volume confirmation, the script includes a VWMA cloud. This is based
on a default 50 period Volume Weighted Moving Average and its associated default 1 deviation
cloud.

A valid long signal is given when the VWMA and both its upper and lower deviations are rising
and the price is above the VWMA.

A valid short signal is produced when the price is below the VWMA and the VWMA and its
upper and lower deviations are falling.

The cloud is also coloured according to these conditions.

CCI Trend

The CCI Trend is a trend trailing system based on the current CCI value and may be found to be
useful as a trailing stop loss, although its calculations are not factored into the buy and sell
signals and is therefore just a visual aid.
Signal Filters, Buffer and Table

The Signal Filters checkboxes allow you to select which signals to take into account when
generating buy or sell signals.

It is very rare for all of the conditions to be met on the same bar, therefore the Trade Entry
Buffer allows a set margin within which all buy or sell signals must agree to generate a signal.

Signals are given as an upwards pointing triangle, below the price, for a buy and a downwards
pointing triangle, above the price, for a sell. These are generated when all of the conditions you
select in the Signal Filters agree within the period set in the Trade Entry Buffer.
Finally, by enabling the table you can see at a glance what the current condition of each element
of the script is: green for bullish or red for bearish.

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