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