OPEN-SOURCE SCRIPT
Power Signal v6 by GRAWDAYTRADER
Power Signal v6 Description
Power Signal Indicator (PSI) is a market strength indicator that combines volume analysis and price proximity to daily highs to generate high-quality trading signals.
What the Indicator Does
The script calculates a "Power Index" based on two key components:
Proximity to High — measures how close the current price is to the previous day's high in percentage terms
Relative Volume — compares current volume to the average volume over a selected period (default 20 bars)
When price is within 1% of the daily high AND volume exceeds 150% of average, the indicator applies a 1.2 multiplier to the relative volume, creating the "Power Index". When this index crosses a defined threshold (default 150), it generates a PSI! signal with a visual marker on the chart and an audio alert.
Visualization
Main line displays in a separate pane below the chart
Line color: lime (when Power > 100) or gray
Horizontal levels: yellow (plot threshold) and red dotted line (signal threshold)
Information table in top-right corner shows current values of all components
Who Will Find It Useful
Day Traders and Scalpers:
Identifies moments of heightened market activity with strong volume
Helps catch momentum moves on breakouts
Generates clear entry signals with customizable alerts
Swing Traders:
Confirms trend strength through price and volume combination
Filters false breakouts — signals only occur with significant volume
Shows when price is near important levels with institutional interest
Volume Traders:
Visualizes abnormal volume activity in the context of price movement
Helps identify accumulation/distribution zones
Combines price action with volume analysis in one tool
Key Benefits:
Customizable thresholds for different timeframes and instruments
Automatic alerts (audio and visual)
Minimalist design with clear signals
Works on any market: stocks, crypto, forex, futures
The indicator is especially effective on volatile instruments with good liquidity, where volume plays a critical role in confirming price movements.
Power Signal Indicator (PSI) is a market strength indicator that combines volume analysis and price proximity to daily highs to generate high-quality trading signals.
What the Indicator Does
The script calculates a "Power Index" based on two key components:
Proximity to High — measures how close the current price is to the previous day's high in percentage terms
Relative Volume — compares current volume to the average volume over a selected period (default 20 bars)
When price is within 1% of the daily high AND volume exceeds 150% of average, the indicator applies a 1.2 multiplier to the relative volume, creating the "Power Index". When this index crosses a defined threshold (default 150), it generates a PSI! signal with a visual marker on the chart and an audio alert.
Visualization
Main line displays in a separate pane below the chart
Line color: lime (when Power > 100) or gray
Horizontal levels: yellow (plot threshold) and red dotted line (signal threshold)
Information table in top-right corner shows current values of all components
Who Will Find It Useful
Day Traders and Scalpers:
Identifies moments of heightened market activity with strong volume
Helps catch momentum moves on breakouts
Generates clear entry signals with customizable alerts
Swing Traders:
Confirms trend strength through price and volume combination
Filters false breakouts — signals only occur with significant volume
Shows when price is near important levels with institutional interest
Volume Traders:
Visualizes abnormal volume activity in the context of price movement
Helps identify accumulation/distribution zones
Combines price action with volume analysis in one tool
Key Benefits:
Customizable thresholds for different timeframes and instruments
Automatic alerts (audio and visual)
Minimalist design with clear signals
Works on any market: stocks, crypto, forex, futures
The indicator is especially effective on volatile instruments with good liquidity, where volume plays a critical role in confirming price movements.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Trading Education & Asset Management!
We are hiring successful traders to join our in-office team!
Telegram: @GRAWDAYTRADER
Join our chat to discuss investment ideas: t.me/invest_club
We are hiring successful traders to join our in-office team!
Telegram: @GRAWDAYTRADER
Join our chat to discuss investment ideas: t.me/invest_club
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Trading Education & Asset Management!
We are hiring successful traders to join our in-office team!
Telegram: @GRAWDAYTRADER
Join our chat to discuss investment ideas: t.me/invest_club
We are hiring successful traders to join our in-office team!
Telegram: @GRAWDAYTRADER
Join our chat to discuss investment ideas: t.me/invest_club
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.