Volume day ratio
How much the latest bar changed the rolling volume total; 1 means no change, not a daily comparison.
The indicator sums the volume of the last day_window bars, then divides that total by the same total one bar earlier. A reading of 1 means the window total did not change. Above 1 means the bar that just entered carried more volume than the bar that dropped out, below 1 means less. Despite the name, it does not compare today's volume with a previous day's volume.
How to read it
- The line sits in its own pane below the price, centred on 1.
- At default settings almost every bar lands between 0.998 and 1.002, so small wiggles are noise.
- Readings above 1 mean the newest bar is heavier than the one it pushed out of the window; the sample peaked at 1.17.
- Readings below 1 mean the newest bar is lighter than the one it replaced; the sample bottomed at 0.85.
What it outputs
- Rolling volume step
- Total volume over the last day_window bars divided by that total one bar earlier. Above 1 the window grew, below 1 it shrank.
Settings
- day_window
- Length of the rolling volume window in bars. Raising it spreads the total over more bars, so each new bar moves the ratio less and the line hugs 1. Lowering it makes each bar move the ratio more; at 1 it becomes the bar-to-bar volume ratio.
Pitfalls
- The name says day, but the window counts bars and never resets at the open. The default 960 bars is about one full day of bars in the sample, so it is a rolling day, not a calendar day.
- The value tracks volume flow, not price: its correlation with close was -0.02 on the sample, so it does not say whether a move is up or down.
- The first 960 bars have no value (about 4.8% of the sample at defaults), and at defaults one bar moves the line only about 0.2%, so it reads flat most of the time.