galenwoods

Volume Spikes

galenwoods Premium Updated   
OVERVIEW

Easily identify volume spikes. This indicator identifies volume spike bars and highlights them to facilitate studying volume spikes alongside price action.

CONCEPTS

Bars with abnormally high volume indicate market interest and are worth a closer look. They could indicate market exhaustion or act as future areas of S/R (as shown by the horizontal rays above).

The question is the level of volume that should prompt our interest.

Here, we use the Upper Band of a long-term Bollinger Bands applied on volume to identify bars with outlier volumes. (The lower panel of the chart shown serves to illustrate this concept, and is not included in this indicator.)

HOW TO USE

Volume spike bars will be highlighted in green by default. You may study how the market price action reacts to these volume spikes without the distraction of a separate plot.

Parameters

Feel free to experiment with the parameters, but the default parameters work well for me on daily charts . However, for intraday timeframes, due to the typical skewing of volume to the beginning and end of a session, they do not work as well.
Release Notes: Add alert function for Volume Spikes

You can now set up alerts to detect Volume Spikes.

Protected script
This script is published closed-source and you may use it freely. You can favorite it to use it on a chart. You cannot view or modify its source code.
Disclaimer

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