Balloon Raindrop Painter

A custom indicator created by TrendSpider on TrendSpider. You can import this custom indicator into your TrendSpider account. Don't have TrendSpider? Create an account first, then import the custom indicator.

Source code

This indicator had been implemented by TrendSpider in JavaScript on TrendSpider. Check out the developer documentation to learn more about JS on TrendSpider.

describe_indicator('Balloon Raindrop Painter');

// This is an experimental indicator based on the concept of Raindrop Candles
// and volume imbalance. It may not perfectly replicate TrendSpider's implementation
// and its effectiveness should be carefully evaluated before use in trading decisions.

const volumeThreshold = input.number('Volume Imbalance Threshold', 2, { min: 1.1, max: 10 });

// Helper function to calculate VWAP for a single candle
const calculateVWAP = (high, low, volume) => {
    const avgPrice = (high + low) / 2;
    return avgPrice * volume / volume;
};

// Calculate VWAP for each candle
const myVwap = for_every(high, low, volume, (h, l, v) => calculateVWAP(h, l, v));

// Calculate volume on the low and high side of each candle
const lowVolume = for_every(close, low, myVwap, volume, (c, l, v, vol) => 
    v > l ? vol * (v - l) / (c - l) : vol);
const highVolume = for_every(close, high, myVwap, volume, (c, h, v, vol) => 
    v < h ? vol * (h - v) / (h - c) : vol);

// Determine candle color based on volume imbalance
const candleColor = for_every(lowVolume, highVolume, (lv, hv) => {
    if (hv > lv * volumeThreshold) {
        return '#00FF00'; // Neon green for bullish balloon
    } else if (lv > hv * volumeThreshold) {
        return '#FF0000'; // Neon red for bearish balloon
    } else {
        return '#808080'; // Gray for neutral candles
    }
});

// Color the candles
color_candles(candleColor);

// Define bullish and bearish balloon signals
const bullishBalloon = for_every(lowVolume, highVolume, (lv, hv) => 
    hv > lv * volumeThreshold ? 1 : 0);
const bearishBalloon = for_every(lowVolume, highVolume, (lv, hv) => 
    lv > hv * volumeThreshold ? 1 : 0);

// Register signals for scanning and strategy testing
register_signal(bullishBalloon, 'Bullish Balloon');
register_signal(bearishBalloon, 'Bearish Balloon');