OPEN-SOURCE SCRIPT
CNS - zVol
Normalized volume using the Z-score of a lookback period "X" for each time slice.
So if you are on a 5-minute chart, and it is 9:30am, it calculates the standard deviation of the current volume from the mean volume for that time slice (9:30-9:35am) over X number of days.
It was designed to filter out the noise of volume spikes that occur at market open/close, power hour, etc.
I believe the default lookback period is set to 20 days. I often use 14.
So if you are on a 5-minute chart, and it is 9:30am, it calculates the standard deviation of the current volume from the mean volume for that time slice (9:30-9:35am) over X number of days.
It was designed to filter out the noise of volume spikes that occur at market open/close, power hour, etc.
I believe the default lookback period is set to 20 days. I often use 14.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.