OPEN-SOURCE SCRIPT
Smart Volume
Updated
First and foremost: why is this valuable and should not be ghosted again by Pine Moderators:
It's a powerful tool to analyze volume by allowing users to focus on volume bars that matter. Triggers are calculated "per ticker", meaning it's not a one size fits all approach. It also combines volume contraction with volatility contraction (RMV) in one single indicator, among other things. I kindly ask users to comment on the uniqueness of the approach. Thank you.
I recorded a video talking about it:
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Smart Volume offers advanced volume analysis by combining volume patterns, volatility contractions, and breakout detection into a unified indicator. It helps identify key market turning points by:
The script includes a dashboard that displays:
Perfect for swing traders looking to capitalize on institutional volume patterns and volatility contractions. Most effective on daily timeframes with liquid stocks.
Key feature: Uses adaptive thresholds that adjust to each symbol's unique volume characteristics rather than fixed multiples.
It's a powerful tool to analyze volume by allowing users to focus on volume bars that matter. Triggers are calculated "per ticker", meaning it's not a one size fits all approach. It also combines volume contraction with volatility contraction (RMV) in one single indicator, among other things. I kindly ask users to comment on the uniqueness of the approach. Thank you.
I recorded a video talking about it:
___
Smart Volume offers advanced volume analysis by combining volume patterns, volatility contractions, and breakout detection into a unified indicator. It helps identify key market turning points by:
- Detecting volume compressions with volatility alignment - spots potential breakout setups when both volume and volatility contract simultaneously
- Identifying climactic volume conditions (buying/selling climax) with specific criteria for exhaustion moves
- Auto-detecting significant volume thresholds based on historical data instead of fixed multiples
- Monitoring volume/price divergences with strict criteria (>2% price moves, >20% volume changes)
The script includes a dashboard that displays:
- Volume analysis (spikes, compressions)
- Volatility state (RVM - Relative Movement Value)
- Pattern detection (climax, dry-ups, divergences)
- Liquidity assessment
- Breakout status
Perfect for swing traders looking to capitalize on institutional volume patterns and volatility contractions. Most effective on daily timeframes with liquid stocks.
Key feature: Uses adaptive thresholds that adjust to each symbol's unique volume characteristics rather than fixed multiples.
Release Notes
- added ability to change transparency of the dashboard- now allows the user to enforce or not breakouts on types of candle. Also added extra confirmation with a minimum number of compression periods.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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Dad of James, trader, technologist, cyclist, and a modern stoic who loves dachshunds, espresso and landscape photography in no particular order.
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