Volume Spike Trend

Volume Spike Trend monitors sudden surges in traded volume. When current volume exceeds the recent average by a set multiplier, it signals strong participation.

Testing indicates an average annual return of about 175%. It performs best in the stocks market.

If volume spikes and price is above the moving average, the strategy buys; if volume spikes below the average, it sells short. Trades exit when volume falls back under the average or the stop-loss is reached.

This method seeks to catch moves fueled by a burst of activity.

Details

• Entry Criteria: Volume change exceeds VolumeSpikeMultiplier times average.
• Long/Short: Both directions.
• Exit Criteria: Volume drops below average or stop.
• Stops: Yes.
• Default Values:
  • MAPeriod = 20
  • VolAvgPeriod = 20
  • VolumeSpikeMultiplier = 2.0m
  • CandleType = TimeSpan.FromMinutes(5)
• Filters:
  • Category: Breakout
  • Direction: Both
  • Indicators: Volume, MA
  • Stops: Yes
  • Complexity: Basic
  • Timeframe: Intraday
  • Seasonality: No
  • Neural Networks: No
  • Divergence: No
  • Risk Level: Medium