Volume Spike Detector

Volume Spike Detector is a filter on the Veles platform that detects changes in trading volume: sharp spikes (volume surges) or significant drops.
The indicator is especially useful in crypto trading, where volume often “explodes” before strong price moves, during news events, listings, or accumulation/distribution phases.

How the Volume Spike Detector Works

The indicator calculates the average volume over a specified period and compares it to the volume of the current candle.

Our implementation uses a multiplier (coefficient) relative to the average volume.

Principle of Operation

1. Average volume is calculated over the specified period.

2. Threshold is determined:
   Threshold = Average volume × Coefficient

3. The selected condition is applied:

   • If condition is Greater than → signal when
     Current volume ≥ Threshold
   • If condition is Less than → signal when
     Current volume ≤ Threshold

Coefficient interpretation examples:

• 1.0 — current volume equals the average
• 1.5 — volume is 50% above average
• 2.0 — volume is 2× the average (100% higher)
• 0.8 — volume is 20% below average

The signal is generated based on the chosen condition: above or below the specified coefficient.

Indicator Settings in Veles

• Period — number of candles used to calculate the average volume.
• Value — main adjustable coefficient (range from 0 to 100). To change: click the pencil icon → enter the desired value.
• Condition — Greater than or Less than

It is recommended to use with calculation type “At bar closing”.
Calculation “Once per minute” may generate many false signals.

Usage Examples

Simple trend-following strategy:

• Value greater than: 1.4 – 2.0
• Type: at bar closing
• Timeframe: 15 minutes or 1 hour

The bot enters long/short only if the candle closes with volume 40–100% above average — a signal of increased market interest.

Scalping on low timeframes:

• Value greater than: 1.25–1.3
• Timeframe: 1–5 minutes

Fast entries confirmed by volume increase on lower timeframes.

Setting a range (example with two filters):

To track volume growth within a specific range, use two filters with different conditions:

• Coefficient greater than 1.2
• AND coefficient less than 2.0

This means: volume is at least 20% above average, but does not exceed 2× the average.

Combinations with other filters:

• Volume Spike + Candle Trend 4 (entry after a series of same-color candles + volume spike).
• Volume Spike + RSI > 60 (long only on bullish spike in overbought zone — confirmation of strength).
• Volume Spike + ATR% > 2% (very aggressive entries during extreme volatility and volume).

Display on TradingView

The indicator does not draw lines, histograms, or persistent labels under the chart.
It works exclusively as a signal generator for the Veles bot.

When clicking Calculate in the bot configurator, TradingView displays entry labels (bot signals).

Why Volume Spike Detector Is Useful in Crypto Trading

On the crypto market, volume often remains quiet during flat periods, then surges 100–200–500%+ right before a real move.
The filter helps:

• Confirm breakouts from consolidation (high volume on level breaks).
• Catch the start of impulses or reversals (spikes frequently precede strong moves).
• Filter out weak candles (low/no volume) to avoid entries during low-activity periods.

Volume Spike Detector is a simple yet powerful filter for eliminating “empty” moves and focusing on candles backed by real capital participation.
It suits beginners (easy to understand: “higher volume — stronger signal”) and professionals (fine coefficient tuning for specific assets and trading styles).