If you are looking for an indicator whose movement reflects both the crypto’s price fluctuations and volume, then you should choose Time Segmented Volume. Though it is similar to On-Balance Volume, it is unique. Let’s learn more about this indicator in depth.
1. Time Segmented Volume: A Short Description
Time Segmented Volume, known by the abbreviation TSV, is a leading crypto technical indicator, highly popular among crypto traders. It looks at two things: how the price of a cryptocurrency is changing and how many are being bought and sold.
1.1. The Origin of Time Segmented Volume
Time Segmented Volume was made by Worden Brothers Inc. The people who made it say that when you see differences between TSV and the asset price, it can help you figure out when to start or step trading.
1.2. Working of Time Segmented Volume
Time Segmented Volume is an oscillator. It has a baseline, which is a zero line. When TSV goes up above this line, it means more people are buying. It is a bullish signal. Conversely, when TSV goes down below the baseline, it means more people are selling. It is a bearish signal. So, TSV helps crypto traders to see if there is buying or selling pressure in the crypto market, which can give them clues about where prices might go.
2. Calculating Time Segmented Volume: The Basics
|TSV = (Price Change in Segment) * (Volume Change in Segment)
To calculate Time segmented Volume, we look at how much the price and volume change during a specific time period. We compare the current time segment to a previous one. If the price went up, we calculate how much it went up, and if the volume increased, we measure that increase too.
3. Launching TSV on a TradingView Chart: Know How
Here are the steps to lunch Time Segmented Volume on a TradingView chart
- Log in to your TradingView account
- Choose the trading pair or crypto you want to analyse and open it in a new chart
- Find the ‘indicator’ button on the top menu
- Search for ‘Time Segmented Volume’ or simply ‘TSV’ in the Indicator menu
- Click on TSV to add it to your chart
- You can customise the TSV settings if needed, such as the time period you want to analyse
- Click the ‘OK’ button
- Start interpreting trading signals using TSV
4. Analysing A Chart For Trading Signals Using TSV: Learn How
To perfectly analyse a chart for trading signals using Time Segmented Volume, learn the below concepts:
Look at the TSV line on your chart. When TSV crosses above the zero line, it is a positive sign. When it crosses below, it is a negative sign.
Compare TSV movement with the cryptocurrency price. IF TSV goes in one direction and the price in another, it might signal a potential trade opportunity.
Check for extreme TSV values. If TSV is very high, it could mean overbuying. If it is very low, it could indicate overselling.
Watch for TSV trends. A rising TSV trend can suggest an upward price trend, while a falling TSV trend can indicate a downward price trend.
Time Segmented Volume stands as a vital tool in the toolkit for crypto traders. Developed by Worden Brothers Inc., it provides insights into the dynamics of crypto markets. By understanding its calculations and how to launch TSV on TradingView charts, traders can make more informed decisions. Analysing TSV alongside key concepts like the zero line, divergence, overbought/oversold conditions, and trend identification empowers traders to navigate crypto markets with precision.