Using Simple Average Volume to Detect Volume Changes
Summary
This indicator calculates average volume over a chosen number of candles to make volume comparisons available to automated trading systems. A trader can compare averages from shorter and longer periods: if the longer-period average is lower than the shorter-period average, volume has increased on the shorter horizon. The indicator is described as compatible with both tick volume and real volume, where the broker supplies real-volume data.
The document explains the comparison concept and distinguishes the two volume series shown by the indicator, but offers no tested signals, thresholds, or trading rules beyond detecting an increase or decrease. Tick volume measures activity through price changes rather than traded quantity, so its meaning depends on the data source; the description does not discuss this limitation, parameter choice, or strategy performance.
Key ideas
- The indicator computes average volume over a configurable number of candles.
- Comparing shorter- and longer-period averages can reveal a change in volume.
- It can use tick volume or real volume when the data source provides it.
- The description supplies no thresholds, validated signals, or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.