Volume Spike Indicator

Jan 11

The Volume Spike Indicator is designed to identify significant volume spikes in the market. This tool helps traders recognize unusual trading activity, which may indicate potential reversals, breakouts, or increased volatility. The indicator uses a simple moving average (SMA) of volume over a specified period and highlights bars where the current volume exceeds a multiple of this average.

Features:

1. Volume SMA Calculation:
   The indicator calculates the SMA of volume over a customizable period (default: 20 bars).
   
   
2. Spike Multiplier:
   A threshold multiplier (default: 4) determines what qualifies as a "spike."
   Spikes occur when the current volume is greater than the SMA multiplied by this threshold.
   
   
3. Visual Alerts:
   If a spike is detected, a red cross (Cross) and X-shape (X-Cross) are plotted above the corresponding bar for easy identification.
   

How to Use:

• Spot High-Activity Areas:
  Use this indicator to find points of unusually high trading activity, which can signify key levels or moments of interest in the market.
  
  
• Adjust Settings for Sensitivity:Length: Change the SMA period to match your trading timeframe.
  Spike Multiplier: Lower values detect smaller spikes; higher values focus on extreme events.
  
• Combine with Other Indicators:
  This tool works best when combined with price action analysis, support/resistance levels, or trend indicators to confirm trading signals.
  

Customization Options:

• []Length: Number of bars for SMA calculation (default: 20).
  []Spike Multiplier: Threshold for defining volume spikes (default: 4).
  

This indicator is suitable for traders looking to enhance their analysis by identifying abnormal market activity.

Mar 19

Release Notes

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