Extreme Volume Indicator
The extreme volume indicator helps identify turning points in the market by pinpointing spots of higher than average volume. Such points usually indicate the start of a trend or a turning point in the market.
The indicator averages out volume readings over an extended period of time and calculates a volume threshold level. When this level is breached, it identifies the most likely trend direction using the
trend of the candle that breached the volume threshold. The direction indicator (red or green arrow) is only a suggestion and should be verified using some additional criteria.
The high volume points, on the other hand, are very accurate on their own and can be used to setup for the upcoming trade based on the current price action.
The extreme volume indicator offers the following user definable settings:
- Threshold average period - the averaging period setting for determining the dynamic volume threshold
- Threshold multiple - the multiple for the threshold reading that helps fine tune the threshold reading for each traded symbol
- Wick to body ratio - an optional parameter that defines the signal candle criteria (i.e. if set to "3" the signal candle should have a wick that is at least 3 times larger than the candle body)
- Use on offline charts (true/false) - a setting for use on offline charts.