Volume candles in OsEngine.
Volume candles are a tool for analyzing market activity based on trading volume. In this article, we will take a closer look at what they represent, their history, ways of application in trading, as well as where to find the source code for building this type of candles and the basic principles of their calculation.
1. History of Volume candles.
The concept of volume candles entered the trading world relatively recently as a response to the need for more precise and detailed analysis of market activity. Unlike traditional Japanese candles, Volume candles focus not only on price changes but also on the trading volume level.
Unfortunately, there were no Japanese involved in their creation, so let's move on right to the method of their calculation.
2. Calculation of this type of candles.
The calculation of volume candles is based on several key parameters: opening price, closing price, maximum and minimum prices over a certain period, as well as trading volume during that same period. The characteristic feature of these candles is that the time interval of the candle directly depends on the trading volume.
One additional important characteristic added to volume candles is the width of the candle in traded volumes.
Volume candles are formed as follows:
1. The trading volume inside the candle is determined, exceeding which the candle will be considered closed.
2. Then the candle is assembled in the standard way, similar to Japanese candles, from the tape of trades until the required volume for candle closure is reached.
3. How to trade with Volume candles. Options.
1. Long and high-volume trading at a level indicating a trend change.
2. Impulsive trend trading with accelerating candle formation.
High volume during price movement in a specific direction can confirm the strength of the trend. In this case, we see a very long trading and exit from it when multiple candles are formed in just a few seconds, indicating a moving market.
4. How to enable Volume candles in Os Engine.
Open the main menu in Os Engine and go to "Bot Station Light".
Connect to the "Alor" connector or any other one:
Then create a trading robot, in this case, it will be Bollinger Revers.
Now go to the menu to connect the data stream to the robot:
After the settings, we see a chart with "Volume candles".
5. Where to find the source code for building Volume candles in OsEngine.
You can find the code for volume candles open-sourced on the GitHub platform.
After downloading the project to your PC, you can find it in the Custom/CandleSeries folder. From here, candle series scripts are serialized during the OsEngine start, allowing you to share your candle types without compilation.
Successful algorithms!