Smart Volume Analyzer: Pattern-Based Volume Analysis
This script introduces an original approach to volume analysis by combining three synergistic components:
Adaptive Volume Analysis
Automatically calibrates significant volume thresholds using a dynamic 6-bar moving average
Each stock gets its own custom volume profile rather than using fixed multiples
Applies RVM (Relative Volatility Measure) to validate volume signals, filtering out noise during high volatility periods
Advanced Pattern Recognition
Detects volume climax events (selling/buying) using precise mathematical criteria:
• Volume > 3x normal AND
• Price closes in opposite half of candle AND
• New high/low made with increasing volume
Identifies institutional volume dry-ups when volume drops below 50% of 20-period average with consecutive decreases
Statistical Validation
Real-time calculation of compression ratios and pattern strength
Volume-price divergence detection using 5-period momentum comparisons
Dynamic liquidity scoring based on relative volume and market participation
Practical Applications:
Institutional accumulation detection through combined volume compression + volatility contraction
Early trend reversal identification via climax volume patterns
Risk management through real-time liquidity assessment
Key Differentiators:
Uses HMA-based volume analysis instead of standard moving averages for faster response
Implements true adaptive thresholds rather than fixed multipliers
Combines volume patterns with volatility structure for higher probability setups
Best suited for daily timeframes where institutional footprints are most visible. Works on any liquid instrument with volume data.