Volume-Range Anomaly Breakout [AlgoPoint]The Volume-Range Anomaly (VRA) Breakout system is a specialized trading tool designed to detect "Absorption" and "Hidden Institutional Activity" in the market. Unlike traditional trend indicators that lag behind price, this script focuses on the relationship between Effort (Volume) and Result (Price Range) to identify explosive moves before they happen.
1. The Underlying Logic (VRA Theory)
In a normal market environment, high volume should result in a large price range (a big candle). However, anomalies occur when:
- Volume is Extremely High (High Effort)
- Price Range is Extremely Low (Low Result)
What does this mean? This specific anomaly indicates that "Smart Money" or large institutions are absorbing liquidity using passive Limit Orders. They are aggressively buying or selling, but they are preventing the price from moving to accumulate a position without slippage. This is often called " Squat " behavior or " Absorption. "
When this compression phase ends, the price typically explodes (Breakout) in the direction of the dominant institutional pressure.
2. How It Works
The indicator operates in three distinct phases:
1. Detection Phase (The Anomaly):
- The script calculates Relative Volume (RVOL) and Relative Range (R-Range) over a user-defined lookback period.
- If Volume > Threshold AND Range < Threshold , the bar is identified as a " Whale Candle " and colored PURPLE. This signifies hidden activity.
2. Setup Phase (The Trap):
- Once a Purple Candle is detected, the script automatically draws dynamic Support (Green Dotted) and Resistance (Red Dotted) lines based on that candle's High and Low.
- These lines represent the "Battle Zone" where the absorption took place.
3. Execution Phase (The Breakout):
- The script waits for a confirmed candle CLOSE outside of this zone.
- BUY Signal : Price closes above the Whale Candle's High.
- SELL Signal : Price closes below the Whale Candle's Low.
3. How to Use
This is a complete breakout system.
Step 1: Wait for the Setup (Purple Bar)
When a purple bar appears, do not enter immediately. This is a warning that volatility is compressing.
Step 2: Wait for the Breakout (Signal)
Green Label: Enter a Long position when the price confirms a breakout above the resistance line.
Red Label: Enter a Short position when the price confirms a breakout below the support line.
Step 3: Risk Management (Stop Loss)
For Longs: The invalidation level (Stop Loss) is the Bottom of the Purple Candle (Green dotted line).
For Shorts: The invalidation level (Stop Loss) is the Top of the Purple Candle (Red dotted line).
4. Settings
- Lookback Period: The window used to calculate average volume and range (Default: 20).
- Volume Threshold: How many times higher than the average must the volume be? (Default: 1.5x).
- Range Compression: How compressed must the candle be relative to the average? (Default: 0.8x - meaning 80% of average size or smaller).
- Breakout Window: How many bars after the anomaly should the script wait for a breakout before canceling the setup? (Default: 5).
5. Alerts
The script includes 2 custom alert conditions for automation:
- Whale BUY Breakout: Triggers on a confirmed upside breakout.
- Whale SELL Breakout: Triggers on a confirmed downside breakout.
Whalesalert
Whale Buy Activity Detector (Real-Time)Whale Buy Activity Detector (Real-Time)
This indicator helps to identify abnormal spikes in the volume of purchases, which may indicate the activity of large players ("whales"). It analyzes the volume of purchases and compares it with the average volume over a certain period of time. If the volume of purchases exceeds a set threshold, the indicator marks this as potential whale activity.
Basic parameters:
Volume Threshold (x Average): The coefficient by which the current purchase volume must exceed the average volume in order to be considered abnormal. The default value is 2.0, which means that the purchase volume should be 2 times the average volume for the selected time period. This parameter can be adjusted in the range from 1.0 and higher in increments of 0.1.
Example: If you set the value to 1.5, the indicator will mark situations when the volume of purchases exceeds the average volume by 1.5 times.
Lookback Period: The time period used to calculate the average purchase volume. The default value is 20, which means that the average purchase volume will be calculated for the last 20 candles. This parameter can be set in the range from 1 and above.Example: If you set the value to 10, the average purchase volume will be calculated for the last 10 candles.
How to use:
Buy Volume: Shows the volume of purchases on each candle. This is the volume that was sold at a price higher than the opening price of the candle.
Average Buy Volume: The average volume of purchases over a given time period (Lookback Period). This parameter helps to determine the "normal" level of purchase volume.
Whale Buy: Notes abnormal spikes in the volume of purchases, which may indicate the activity of "whales". The indicator draws a mark on the top of the candle when the purchase volume exceeds the threshold set by the Volume Threshold parameter.
Notifications:
The indicator can send notifications when an abnormal volume of purchases is detected. You can set up notifications via the TradingView menu to receive real-time alerts.
Usage example:
If you are trading in a highly volatile market, you can increase the Volume Threshold to filter out small volume spikes.
If you trade in a low-volatility market, you can reduce the Volume Threshold to capture even small anomalies.
WHALE SIGNAL 4H
WHALE SIGNAL 4H BASED ON VOLUME CHANGE AND MOVING AVERAGE
This script aims to highlight potential whale signals on the 4-hour timeframe by analyzing volume changes, and it provides options for customization through input parameters. Whale signals are then displayed on the chart with different colors for the last hit and the previous hits. The Detector parameter adds flexibility to consider neighboring bars in the detection process, Let's break down the key components:
1/The script defines input parameters that users can customize:
-VCH (Volume Change on 4H candle) with a default value of 3, 3 times the MA Value.
-Length_240 (Moving Average length for the last 21 bars on the 4-hour timeframe).
-Detector (a boolean parameter to enable or disable whale detection in the previous or next bar).
2/Logic Section:
The script defines a function bar(hit) to convert the bar index based on the timeframe.
It calculates the Volume Change (whale signal) by comparing the current volume with a threshold (VCH * vma).
The Detector parameter allows for flexibility in detecting whale signals in neighboring bars.
3/ Plotting Section:
The script defines a function is_whale() to check if there is a whale signal and if it occurred in the last three bars.
It uses the plot function to display whale signals on the chart with different colors and offsets.
Volume Surge indicatorThis indicator highlight candles when Volume surge "X" times in compare of last "n" candle.
It helps you to find moments of market which Volatility and Position volumes raise significantly.
In other words, It shows footstep of "Big Banks" or "Whales" or other Giants ;)
- default value highlight candles when Volume is 2 time more than average of last 30 candle. But you can modify both values in your favor.
* You can set Alarm for notifying in advance when Volume surge happened on any chart.
I hope you guys find it helpful and handy
