Capitulation Volume Detector by @RhinoTradez

Overview
Hey traders, want to catch the market when it’s totally losing it? The Capitulation Volume Detector is your go-to buddy for spotting those wild moments when panic selling takes over. Picture this: prices plummet, volume explodes, and everyone’s bailing out—that’s capitulation, and it might just signal a turning point. This script throws a bright marker on your chart whenever the chaos hits, so you can decide if it’s time to jump in or sit tight. Built fresh in Pine Script v6, it’s sleek, customizable, and packs an alert to keep you posted—perfect for stocks, indices like SPY, or even crypto chaos.

Inspired by epic sell-offs like March 2020’s COVID crash, this tool’s here to help you navigate the storm with a smile (and maybe a profit).

What It Does
Capitulation volume is that “everyone’s out!” moment: a steep price drop meets a massive volume surge, hinting that sellers are tapped out. It’s not a guaranteed reversal—sometimes the bleeding continues—but it’s a loud clue that fear’s peaked. Here’s the magic:

• Volume Check: Measures current volume against a customizable average (default: 20 bars).
  
• Price Plunge: Tracks the percentage drop from the last close.
  
• Capitulation Call: When volume rockets past your threshold (e.g., 2x average) and price tanks (e.g., -5%), you get a red triangle above the bar.
  
• Stay Alert: Fires off a detailed message (e.g., “Volume 300M > 200M, Drop -10%”) so you’re never caught off guard.
  

Think of it as your market meltdown radar—simple, effective, and ready to roll.

Functionality Breakdown

Volume Surge Spotter:
Uses a 20-bar Simple Moving Average (SMA) of volume as your baseline.
Flags any bar where volume exceeds this average by your chosen multiplier (default: 2x).

Price Drop Detector:
Calculates the percentage change from the prior close.
Triggers when the drop’s bigger than your set limit (default: -5%).

Capitulation Marker:
Combines both signals: high volume + sharp drop = capitulation.
Slaps a red triangle above the bar for instant “whoa, there it is!” vibes.

Real-Time Alerts:
Sends a custom alert with volume and drop details, keeping you in the loop without babysitting the chart.


Customization Options
Tune it to your trading style with these easy settings:

• Volume Multiplier (x Avg): Starts at 2.0 (2x average volume). Bump it to 3.0 for only the wildest spikes or dial it to 1.5 for more frequent catches. Range: 1.0-10.0, step 0.1.
  
• Price Drop Threshold (%): Default 5.0 (a -5% drop). Go big with 10.0 for crash-level falls or ease to 3.0 for lighter dips. Range: 1.0-20.0, step 0.1.
  
• Average Volume Period: Default 20 bars. Stretch it to 50 for a broader view or shrink to 10 for quick reactions. Range: 1-100.
  
• Capitulation Marker Color: Red by default—because panic’s loud! Switch it to blue, green, or pink to match your chart’s personality.
  

How to Use It

1. Drop It On: Add it to any chart with volume data—SPY daily for market moves, /ES 15-minute for intraday action, or your go-to stock.
   
2. Play with Settings: Hit the indicator’s config gear and tweak the multiplier, drop threshold, period, or marker color to fit your vibe.
   
3. Set an Alert: Right-click the indicator, add an alert with “Any alert() function call,” and get pinged when capitulation strikes.
   
4. Watch the Action: Look for those red triangles on big drop days—pair with your favorite reversal signals for extra oomph.
   

Pro Tips

• Daily Charts: Catch market-wide capitulations like March 23, 2020 (SPY: -10%, 3x volume).
  
• Intraday: Spot flash crashes or sector sell-offs on 15-minute or 5-minute bars.
  
• Context Matters: High volume alone isn’t enough—check the VIX or candlestick patterns (e.g., hammers) to confirm a bottom.