Ease of Movement

Inputs

• volumeMultiplier: defines how much higher the current volume must be in comparison to the average volume to trigger a "surge". Default is 1.5 (150% of the average volume)

• lookbackPeriod: this is how far the script will look back to calculate the average volume. Default is is set to 1440 minutes (24 hours of 1-minute candles)

Logic

• The script calculates the simple moving average (SMA) of volume over the pre-defined lookback period (avgVolume)

• It then checks if the current volume exceeds the average volume multiplied by the defined volumeMultiplier.

• If the condition is met, a buying surge is detected.

Visual Output

• A green label (shape.labelup) is drawn on the chart below bars where a buying surge is detected.

• The background is also highlighted faintly green during surges for additional visibility (bgcolor).

• Two plots are added for reference: Current Volume (blue line) and Average Volume (orange volume)

Set the timeframe of your analysis

Use this indicator on a lower timeframe (1 minute or 5 minute charts). This script aggregates volume based on the lookbackPeriod parameter, so ensure this aligns with your strategy.

Adjust the multiplier to your trading strategy

Modify the the VolumeMultiplier input to fine-tune the surge detection sensitivity. A higher multiple is better because it will result in fewer but more significant surges.

Interpret the resulting signals

A green label or background indicates a potential buying surge, which points to increased liquidity and interest in the asset.

Add Alerts for when surges are detected

alertcondition(isSurge, title="Buying Surge Alert", message="A buying surge has been detected!")

Using exponential moving average (ta.ema) instead of SMA

avgVolume = ta.ema(volume, lookbackPeriod)

Filtering based on price action

Filtering based on price action (only detect surges when the close price is higher than the open price)