Average Volume Stats

Step 1: Starting the Script

Open the ThinkOrSwim platform and go to Studies > Edit Studies > Create. Name the indicator something like AverageVolumeStats and remove any default code inside.

Step 2: Declaring Inputs

We’ll begin by declaring the key inputs that allow users to customize the period lengths for the averages:

input length1 = 30;
input length2 = 90;
input numFormat = {default short, long};

This code allows traders to adjust the two time frames (defaulting to 30 and 90 days) and choose between the short or long number formats.

Step 3: Fetching Volume Data

Next, let’s bring in the daily volume data:

def vol = volume(period = "Day");

This code captures the total daily volume, regardless of which time frame you have on your chart.

Step 4: Calculating Averages

We’ll use the Average function to calculate the average volume over the past length1 and length2 days:

def avg1 = Average(vol, length1);
def avg2 = Average(vol, length2);

Here, we compute the 30-day and 90-day averages (or whichever values you set for length1 and length2).

Step 5: Displaying Volume and Averages

Now, let’s create labels to display the current volume and averages in a readable format:

def volPlot;
def avg1Plot;
def avg2Plot;

switch(numFormat){
case short:
    volPlot = if vol > 1000000 then Round(vol / 1000000, 0) else Round(vol / 1000000, 2);
    avg1Plot = if avg1 > 1000000 then Round(avg1 / 1000000, 0) else Round(avg1 / 1000000, 2);
    avg2Plot = if avg2 > 1000000 then Round(avg2 / 1000000, 0) else Round(avg2 / 1000000, 2);
case long:
    volPlot = Round(vol, 0);
    avg1Plot = Round(avg1, 0);
    avg2Plot = Round(avg2, 0);
}

Step 6: Adding Labels for Visual Representation

The labels are where we’ll show the current volume and how it compares to the averages. We also color-code the labels based on whether today’s volume exceeds the average:

AddLabel(yes, "Volume: " + volPlot, color.light_gray);
AddLabel(yes, length1 + "D Avg: " + avg1Plot + " | " + AsPercent(vol/avg1), if vol/avg1 <= 1 then color.light_gray else color.green);
AddLabel(yes, length2 + "D Avg: " + avg2Plot + " | " + AsPercent(vol/avg2), if vol/avg2 <= 1 then color.light_gray else color.green);

Step 7: Testing and Adjusting

Once you’ve added the code, apply the script and test it on a few tickers. Try adjusting the length1 and length2 values, as well as switching between the short and long number formats to see how the labels change dynamically.

Conclusion

In this tutorial, we’ve built a dynamic Average Volume Stats indicator. By comparing today’s volume against the past averages, this tool helps you spot unusual trading activity quickly and easily. Download the final version for free from our website.