Volume surge
Volume level for each bar, from 0 (normal) to 3 (extreme), against the recent average volume.
VolumeSurge compares each bar's volume with the average volume of the last long_avg bars (50 by default). It also compares the average of the last short_avg bars (10 by default) with that same long average. The level rises from 0 (normal) to 1 (elevated), 2 (surge) and 3 (extreme surge) when either the bar or the short average is far enough above the long average. The current bar is counted in both averages it is compared against.
How to read it
- The level sits in its own pane below the price, on a 0 to 3 scale, and moves in steps rather than a smooth line.
- 0 means normal volume, 1 elevated, 2 a surge and 3 an extreme burst, each against the recent average.
- A run of 2s and 3s means heavy trading held for several bars; a lone 3 is one busy minute.
- The level measures how heavy trading is, not which way price moves. Check the candles at the same bars for direction.
What it outputs
- Volume surge level
- Volume level for each bar: 0 normal, 1 elevated, 2 surge, 3 extreme surge. It is a level, not a ratio.
Settings
- short_avg
- Bars in the short average. Raising it smooths recent volume, so a brief burst lifts the level less. Lowering it lets one busy bar dominate, so the level rises more often. Keep it below long_avg.
- long_avg
- Bars in the baseline average. Raising it gives a steadier baseline that flags volume high against a longer history. Lowering it lets the baseline follow recent volume, so bursts look less unusual. The first long_avg minus one bars show no value.
Pitfalls
- The current bar counts toward both averages it is compared against, so a large bar partly inflates its own baseline and reads lower than a pure ratio.
- At defaults the top level is not rare: on the SPY sample the 95th percentile is already 3, so at least one bar in twenty reads as extreme.
- If short_avg is set above long_avg, the short average divides a sum of only long_avg bars by short_avg, so it reads low.