Volume Spike Trend (Python)

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

• 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