The Volume Spike Analysis [Trendoscope] is designed to detect volume spikes in a trading instrument's data. Rather than relying on the traditional method of comparing volume to its moving average, this indicator employs a distinctive approach to ensure accuracy.
Methodology
Historical Volume Comparison: The indicator first assesses the current bar's volume, say 100k, and looks back historically to determine the last instance when the volume was equal to or exceeded this level.
High Volume Bar Gap Calculation: The intervals or gaps between high volume bars are recorded. These gaps help in determining how common or rare a particular volume spike is.
Spike Magnitude Determination: Here, the extent of the volume spike is gauged in relation to either the median, lowest, or average volume of the intervening bars. The reference metric (median, lowest, or average) can be chosen by the user through the "Volume Spike Reference" input parameter.
Spike Percentile Analysis: The calculated spike magnitude (as a percentage of the reference volume) is cataloged. This collection aids in understanding the relative intensity of the current volume spike when compared to previous spikes.
Threshold Comparisons: The indicator then compares the calculated "High Volume Distance Percentile" to the "Last High Volume Distance Percentile" and the "Volume Spike Percentile" to the "Volume Spike Threshold". If these values surpass the preset thresholds, the current bar is flagged as a high volume or volume spike bar.
Visual Components
Bar Highlighting: High volume or volume spike bars are accentuated with bright colors for easy identification. All other bars have increased transparency to reduce visual clutter.
Distance from the High Volume Bar: Indication of the number of bars since the last high volume occurrence and its respective percentile.
Comparative Factors: A factor representing the magnitude by which the current volume surpasses the lowest, median, and average volumes.
Lowest, Median and Average Volumes: The lowest and median volumes are indicated by tooltips on lines marking the respective bars. The average volume is depicted as a dotted horizontal line, with a triangle marker tooltip revealing its value.
This indicator offers a nuanced analysis of volume spikes, aiding traders in making more informed decisions.
That's a wonderful indicator and thanks for sharing and requesting you to add alerts pls
Superchip1979
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Large volume and a break against a moving average would be good , wea looking to do something like this my self but need help building indicators
Honestcowboy
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@Superchip1979, Please do check "Trusted Pine Programmers for Hire" on tradingview website. Or you can always browse on some freelance websites.
callumjhooker
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Any possibility of alerts for this please?
scottpgarrett
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thank you
Parimal_S
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Thank for this . One small request . Following error is displayed for some of crypto like BNXUSDT, NMRUSDT,UNFIUSDT. Could you fix it please: Error Message: Error on bar 20133.Bar index value x1 argument (9245.00000) in line new () is too far from the current bar index. Try using time instead.
Trendoscope
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@Parimal_S, Thanks. Will have a look. Can you time what timeframe did you use to reproduce the error?