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