RedK Volume-Accelerated Directional Energy Ratio Pro (VADER Pro)

🟩 RedK VADER Pro — Release Notes

RedK VADER Pro is the Pro edition of my open-source indicator RedK VADER (Volume-Accelerated Directional Energy Ratio)

█ Background
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The original RedK VADER is built on a classic concept - somewhat similar to Money Flow - which combines price action and volume: a price move (the displacement) together with the volume behind it (the effort) gives us a proxy of the "energy" behind that move — We get an estimate of "buying energy" when price moves up, and "selling energy" when price moves down.

Large price moves on large volume mean buyers (or sellers) are serious and in control of the action.
Small price moves on large volume mean there is a fight, or a balance of energy, between buyers and sellers.
Large price moves on relatively limited volume mean there is a lack of real energy behind the move — moves like these are usually short-lived.

Since its release back in 2022, RedK VADER has been selected as an Editors' Pick, received many positive reviews from traders, and has been converted by community members to other trading platforms.

VADER Pro takes the VADER concept to the next level — from a directional energy reading to a trader insight and decision-support tool. VADER Pro keeps the VADER calculation engine (with the default settings, VADER Pro reproduces the VADER v4.0 values), and adds
Selectable Analysis Modes
A dynamic Context baseline (including a true higher-timeframe Context)
Additional analysis and signals through the Control Lines and Control markers
Flip markers on the price chart
Comprehensive visual layer using display styles and pre-set color themes
A full set of 9 alerts covering all three "signal systems"

VADER Pro uses many of the features introduced in Pine Script® v6.

The screenshot below shows a chart with both indicators - both on default settings for a quick comparison.

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█ A Quick Refresher: How the VADER Engine Works

Displacement: for every bar, VADER compares the close-to-close change with the average range of the last 2 bars (this also captures gaps). The result is limited to +1 / -1, so a single extreme bar move does not distort the reading.
Effort: the displacement is multiplied by a volume weight (see "Relative Volume" below).
Directional Energy: the weighted values are split into a positive (buying) component and a negative (selling) component. Each side is then averaged and divided by the average volume weight. This gives two separate readings, each between 0 and 100:
- Demand Energy: represents the buying energy
- Supply Energy: represents the selling energy
The net energy: VADER = Demand Energy - Supply Energy, a value between -100 and +100. Above zero, the buyers' energy is higher. Below zero, the sellers' energy is higher. The Signal line is a smoothed moving average of the main VADER plot.

Why this approach gives VADER an edge:

VADER weighs every bar by how far price actually moved relative to its recent range — not only by the direction of the close. A tiny move on big volume and a strong move on big volume are not treated the same, so the VADER readings stay close to what we see in the price action.
This makes VADER more sensitive, easier to read and relate to the chart compared to indicators that assign the full bar volume to one side based on direction alone.
The Demand and Supply Energy lines are measured independently. Together they can never exceed 100 — when both lines shrink at the same time, price is moving very little for the volume being traded. That is useful insight that a single "net energy" line cannot show.

Relative Volume: Utilizing a dynamic volume baseline

Settings: Volume Parameters → Calculation, Lookback
VADER offers three ways to combine the volume dimension:
Relative (default) — the volume weight is based on where the bar's volume sits between the lowest and the highest volume within the Lookback period (default 20 bars). The lowest-volume bar in that window gets zero weight, and the highest-volume bar gets the full weight.
Full — the volume weight is the bar's full volume value.
None — no volume acceleration (also used automatically for symbols with no volume data).

The Relative mode is a key part of VADER's advantage in responding to the action on the chart. Volume is not judged against a fixed value, but against the recent volume range of the same symbol. This provides us with a dynamic baseline that moves with the market. Moves on volume that is high for the current conditions are magnified, and moves on low volume (often just noise) count for very little. This keeps VADER responsive on any symbol and any timeframe, in both quiet and busy markets.

Note: VADER works on any timeframe and any instrument. For symbols with no volume data, the volume part is neutral and the engine works on price action only. In that mode VADER behaves similar to an RSI — but not exactly like it, given the underlying calculation is different.

For more details about the VADER concept, please review the description of the original RedK VADER. In the sections below, we dive directly into the incremental features in VADER Pro.

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█ What's New in VADER Pro

1. Selectable Analysis Modes
Settings: Mode → Analysis Mode
Traders differ in how they trade and how they analyze their charts - For those who prefer to focus on the "current action" and read the bulls versus bears action, they may want to focus on the "Directional Energy" mode - and get their insights from following the "Energy Streams" and the net energy reading (VADER plot) against a delayed signal line. For those who prefer to trade along with a broader context - like a higher timeframe reading of VADER - they can focus on the "Net Energy" mode - and not look at the individual bull/bear fighting.

Here are the 3 "Analysis Modes" in VADER Pro

Directional Energy (default) — Demand (buyers or bulls) and Supply (sellers or bears) Energy plots, Control Markers and the VADER / Signal plots against the zero line.
Net Energy — VADER and Signal plots, with the Context plot of choice.
Full — This mode shows all elements.

Note: the Directional Energy mode always uses the zero line (Context = None). Flip markers and all alerts work in every mode. Control / Dominance Markers will not show in Net Energy mode.

This screenshot shows the same chart in the three Analysis Modes

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2. Updated VADER plot and a new Signal Line
Settings: Lines
VADER Pro follows the same visual style as my other indicators (such as EVEREX Pro): the VADER line is the main plot — It's a thick line with a color gradient between the Up and Down colors — and the Signal is a thin gray line - a moving average (smoothed) version of VADER. The optional High Contrast VADER Plot setting draws a dark outline behind the VADER line, so the VADER line stays readable over the energy plots.

Note: in VADER v4.0 the smoothed line was the main plot. In VADER Pro, the VADER line shows the net energy bar by bar, and the Signal is used for the Flip markers and alerts (see below). Set Signal Smoothing to 1 to disable the smoothing.
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3. Context — a dynamic baseline for the Signal
Settings: Context → Context Method

In VADER v3.0 I introduced the "Sentiment" concept — We look at a slower VADER used as a baseline for the faster VADER, instead of the static zero line. In VADER Pro, the Sentiment evolves into a Context (using the same terminology as EVEREX Pro, VARSI Pro and the RedK MagicRibbon).

The Context is the baseline the Signal is compared against (Flip markers and alerts). Use Context in one of three modes:

None — uses zero as the baseline (this is the classic VADER read - like any other oscillator).
Length Multiplier — calculates a baseline VADER over a longer averaging length on the chart timeframe (Ratio Averaging x Multiplier). This is the classic VADER Sentiment — with the default settings (5 x 4 = 20), the Context matches the VADER v4.0 Sentiment.
Higher Timeframe — pulls a baseline VADER from a higher timeframe you select (true higher-timeframe data). For example, a 1H chart with a 1D Context, or a 1D chart with a 1W Context.

Why a dynamic baseline matters:

With a static zero line, the Signal only tells us which side has the energy. With a Context selected, the baseline dynamically changes with the "broader picture", and the Signal is compared against that moving reference.
A Signal crossing above the Context means the current energy is speeding up relative to the Context — and crossing below means the current energy is slowing down relative to the Context.
This often shows a change in energy earlier than a zero cross, and it filters out the moves that look strong on the current timeframe but are weak (or even in disagreement) compared to the bigger picture. The Flip markers and the Flip alerts are built on this comparison.

For MTF traders, this concept will be a valuable addition to their analysis tools

This screenshot shows VADER Pro in Net Energy mode - on a 1D chart - with Context set to Length Multiplier x4 and Histogram style (left pane) versus Context set to Higher Timeframe 1W and Line style (right pane) - Note the difference in the Flip Markers and how the different Context settings change when & where the Markers will show on the price chart.

Other Context settings:

Context Timeframe — must be the same as or higher than the chart timeframe. If the selected timeframe is lower than the chart timeframe, VADER Pro disables the Context and shows a warning on the pane.
Context Update — Live Update (default): the Context dynamically updates while the higher-timeframe bar is still forming. Last Closed Bar: the Context only changes when the higher-timeframe bar closes (this matches TradingView's built-in "Wait for timeframe closes" behavior). No effect when the selected timeframe equals the chart timeframe.
Context Smoothing and Type — the smoothing applied to the Context (default 3, WMA). For the Higher Timeframe method, the smoothing is calculated on the higher-timeframe bars.
Context Style and Color — Line: plots a single line in the selected color. Histogram: uses the classic VADER 4-color Sentiment histogram — darker while the Context grows, lighter while it fades.

Important Note: 2 "sync'ed" Context TFs (a higher-timeframe VADER and a longer-length VADER that you may expect to be equal) will not show the same values. For example, on a 15min chart: a 1H HTF versus a Length Multiplier of 4. Both describe a slower 1H view, but the calculation uses different data series. Try both and use the one that fits your trading.
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4. Control Lines and Control Markers
Settings: Control & Signals → Control Lines (at Level), Control Markers (at Level)

A side is considered in control when its energy value is at or above the Control Level (default 35) and higher than the other side. While a side is in control, VADER Pro draws a Control marker on every bar — in the Demand color when buyers are in control, and in the Supply color when sellers are in control. The Stream and Pulse displays also get a stronger color while a side is in control.

- Control Lines: the checkbox shows / hides the Control Lines at + and - the level. Control markers and alerts always use that level.
Note: The "primary control line" is the positive value, and this is what the dominant stream is measured against. The negative (secondary) control line is added for convenience when utilizing these lines as overbought/oversold threshold in Net Energy mode.
- Control Markers: the level where the Control markers are drawn on the pane (default -50).

5. Flip Markers on the Price Chart
Settings: Control & Signals → Flip Markers on Price Chart

Marks the bar where the Signal line crosses above (speeding up) or below (slowing down) the Context. With Context = None, the flips are the classic VADER zero-line crosses - Flip Markers are off by default. Turn them on in the indicator settings.

This screenshot shows the Control Lines, the Control Markers and the Flip Markers - and the relevant indicator settings

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6. Energy Style — Stream or Pulse
Settings: Display → Energy Style

Stream (default) shows Demand and Supply Energy as areas with a gradient fill. Pulse shows one bar per candle between the two energies — the bars fade gradually as the net energy decreases.

7. Color Themes
Settings: Display → Energy Colors, Lines → VADER Colors

Choose a color theme for the Demand / Supply Energy, the Control markers and the Flip markers: VADER Classic (aqua / orange — the original VADER colors, default), Classic, Modern, Bright, Neon, Ocean (color-blind friendly), Mono, or Custom.
The VADER line can use the theme colors, or its own Up / Down custom colors so the VADER line stands out from the energy plots.

This screenshot shows VADER Pro using various color themes and plot styles

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8. Other Calculation Options
Settings: Directional Energy Ratio

Ratio Averaging and Type — averaging length and type for the Demand / Supply energy ratios: WMA (default), EMA, SMA, RMA or HMA.
Signal Smoothing and Type — smoothing length and averaging type for the Signal line. Set to 1 to disable.
With the default settings, VADER Pro reproduces the VADER v4.0 values — so existing VADER users can switch and see the same readings they know.

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█ The Three Signal Systems — and How to Combine Them

VADER Pro introduces three signal systems (and 9 related alerts). Each signal answers a different question, works at a different speed, and they are most useful when combined and read together.

1. VADER vs. Signal line — "Is the energy turning right now?"
Shown in the indicator pane: the VADER line crossing its own Signal line (the smoothed VADER).
This is the fastest signal - It acts similar to other oscillators with a delayed signal line - When the VADER line crosses above its Signal, the net energy is turning up; when the VADER line crosses below its Signal, the net energy is turning down. This is often the first sign of a change — and also the one with the most noise, so the other two systems are used to confirm it.
* Related Alerts: VADER Crosses Above Signal, VADER Crosses Below Signal, Any Signal Cross.

2. Acceleration vs. Context — "Is the energy speeding up or slowing down compared to the bigger picture?"
Shown on the price chart: the Flip markers, from the Signal crossing the Context (depends on which baseline mode you set: the zero line, the Length Multiplier, or a higher timeframe).
A Speeding Up flip means the current energy is improving relative to the Context, and a Slowing Down flip means the current energy is fading relative to the Context.
Because the Signal (and not the raw VADER line) is compared to the Context, the flips are steadier than system 1.
* Related Alerts: Speeding Up, Slowing Down, Any Flip.

3. Energy & Control — "Who is in control, and how strongly?"
Shown in the indicator pane: the Demand and Supply Energy streams (Stream or Pulse), the Control Lines and the Control markers.
This system reads the balance between buying and selling energy on the current timeframe. A run of Control markers shows one side dominating the action. Wide, strong energy streams mean serious participation. When both energies are low, price is covering little ground for the volume being traded.
* Related Alerts: Demand Control, Supply Control, Any Control.

This chart shows a good example of combining and reading the 3-signal system in VADER Pro

Reading the signal systems together:

The three systems work as layers, from early to confirmed:
1- VADER crosses above its Signal — an early turn in the energy. Something to watch.
2- A Speeding Up flip follows — the turn is now strong enough to show against the Context.
3- Demand takes control — buyers dominate the action. All three systems agree — this is the setup many traders look for.

And in reverse, as a move matures:
- VADER crosses below its Signal while Demand is still in control — the first sign of the energy fading.
- A Slowing Down flip follows — the energy is fading relative to the Context. A mature move — a time to manage an open position rather than open a new one.
- The Control markers stop — buyers no longer dominate.

Other combinations:
- Speeding Up flip, but no side in control — an early change, but neither side has taken control yet. Worth adding to a watch list and waiting for a Control marker.
- Supply in control, and the VADER line keeps crossing back and forth around its Signal — sellers dominate, but the energy is not turning in a clear way. Many traders prefer to wait.
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█ Alerts

VADER Pro includes a total of 9 alerts — three for each signal system. Every alert message includes the symbol name and the timeframe.

VADER vs. Signal Line (x3)

RedK VADER Pro: VADER Crosses Above Signal — the VADER line crossed above its Signal (energy turning up).
RedK VADER Pro: VADER Crosses Below Signal — the VADER line crossed below its Signal (energy turning down).
RedK VADER Pro: Any Signal Cross — either one of the above.

One Side Takes Control (x3)

RedK VADER Pro: Demand Control — Demand took control (Demand Energy reached the Control Level and is higher than Supply Energy).
RedK VADER Pro: Supply Control — Supply took control.
RedK VADER Pro: Any Control — a side took control.

Flip Up or Down (x3)

RedK VADER Pro: Speeding Up — the Signal crossed above the Context.
RedK VADER Pro: Slowing Down — the Signal crossed below the Context.
RedK VADER Pro: Any Flip — the Signal crossed the Context.

Note: the alerts work in every Analysis Mode, whether the related markers are shown or not. With Context = None, Speeding Up / Slowing Down are the classic VADER zero-line crosses. With Context = Length Multiplier, they match the VADER v3 / v4 Sentiment crossing alerts.
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█ Roadmap

RedK VADER Pro will continue to develop. Please feel free to share feedback once you start using VADER Pro. Planned work in the queue includes:

VADER Pro Info Panel — a compact status panel in the indicator pane with the settings in use and the current VADER reading.
VADER Pro - Screener edition — a light edition made for the Pine Screener, to scan a watchlist or market for VADER Pro conditions (Control and Flips).

Note: the free RedK VADER will continue to be freely available.
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📝 Notes on Use and Limitations
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Volume data: if the symbol has no volume feed, RedK VADER Pro automatically falls back to price-only calculation.
Every effort has been made to provide a professional-level indicator - e.g., useful insights, no clutter, clean indicator status bar and a useful "data window" - If you notice any issues in that regard, please alert me directly.
This is an insight tool, not a signal service. The markers and alerts describe price and volume readings. They are not advice to enter or exit any position, and the indicator does not claim predictive accuracy.

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⚠️ Important Notes & Disclaimer
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The use of this indicator means you have read and agreed to the following:
Not Advice. This indicator, and other work of this author, represent analytical studies of price and volume behavior. No part of it should be considered buy/sell recommendations or signals — “Bulls” and “Bears” describe measured states only. Nothing here is financial, investment, or trading advice.
Risk & Responsibility. Trading involves substantial risk of loss and is not for everyone. All decisions, interpretation, and risk and money management are yours alone. Past behavior does not predict future results. The author accepts no liability for any loss or consequence arising from use of this tool.
Indicator Provided As-Is. Feature requests are welcome and can be shared with the author, but whether or when any request is implemented cannot be promised or guaranteed.

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Disponível em Espaço Pago

Este indicador está disponível apenas para assinantes de The RedKTrader Pro Toolbox. Assine para acessar este e outros scripts de RedKTrader.

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