SLT Pocket Pivot Volume

This is an implementation of the Pocket Pivot volume, below I added an explanation from Gemini about this concept.

This indicator shows the following:
1. Pocket Pivot days (blue bars) - Days where the volume is above average (50 days), and volume is larger than any down volume from the prev 10 days, and the close is at the upper half of the range.
2. Above avg up days - Up days where volume is above average (green bars).
3. Above avg down days - Down days where volume is above average (red bars).

(From Gemini)

A Pocket Pivot is a technical trading signal developed by Gil Morales and Dr. Chris Kacher, two former internal portfolio managers for William J. O’Neil (founder of Investor’s Business Daily).

The strategy was designed to identify institutional accumulation (large-scale buying by banks or hedge funds) while a stock is still within a consolidation base. This allows traders to enter a position before the stock makes a traditional high-volume breakout, providing a better risk-reward ratio and a "head start" on the crowd.

1. The Core Volume Signature
The defining characteristic of a pocket pivot is its volume. Unlike a standard breakout which compares today's volume to a 50-day average, a pocket pivot is relative to recent "down" days.

The Rule: The current day's up-volume must be larger than the highest down-volume day of the previous 10 trading days (my implementation also requires that a Pocket Pivot day volume will be above average).

The Logic: This shows that the buying interest is more aggressive than any selling pressure seen in the last two weeks, signaling that "big money" is stepping in to support the stock.

2. Key Identification Rules
To be a valid pocket pivot, the price action must meet several criteria beyond just volume:

Location: It must occur within a constructive "base" (like a cup-and-handle or flat base) or as a continuation point as the stock moves up along its 10-day moving average.

Moving Averages: The price should be emerging from or supported by the 10-day or 50-day moving average.

Strong Close: The stock should close in the upper half of its daily price range, ideally showing a gain for the day.

Avoid "V" Patterns: Do not buy if the stock is recovering in a sharp "V" shape directly from a deep sell-off; look for "rounding" or "tightness" in the price action first.