Our SignalFI VolumeFI indicator uses our proprietary DynaFIB EMA Moving Average to create a unified volume trend to trade your Bitcoin! And this leverages the Weiss Wave mechanics and Relative Strength Index (RSI). There are a few items to note with the use of this tool when trading Bitcoin or other cryptocurrencies:
Features of VolumeFI
- The Volume wave created can be customized by playing with the EMA Length. Therefore by default the value is 6, it is recommended to go below 3 or above 9 for this setting to remain relevant to the trend.
- By default background coloring is disabled. If enabled, the background color of the indicator will correspond to the trend squares. These little squares are presented at the top of the Wave bars. This does not show any additional functionality other than presenting the Rising and Falling effect of volume in a more pronounced way. This pleases some traders that would like a more “obvious” representation of the current trend presented by VolumeFI.
- Small up and down labels are presented which indicate bull and bear volume spikes. These signals can be categorized into to two forms; supportive and non-supportive. Where the supportive labels are at the start and middle of a trend and the non-supportive at top or bottom of a trend.
To summarize, the small up/down labels represents impulses of positive trend supporting volume. In other words, they indicate “exhaustion” of the trend when seen after a longer volume wave.
These bars provide notice of a reversal when opposite colored signals are presented on Volume Wave bars. For instance when you see a “Blue” (Bull) volume spike on a red wave or one or multiple “Red” (Bear) volume spikes seen on a blue wave.
We advice to use VolumeFI in combination with our other free indicators.