A trading indicator that calculates the number of trades per bar and filters them to identify unusual trading activity, potentially revealing high-frequency bot movements or momentum shifts.
Explore complementary indicator rolesHow it works
This indicator tracks the speed of trades by counting the number of trades occurring within each trading bar. It employs a simple moving average (SMA) as a filter to determine when trade volume exceeds typical levels. When the number of trades in a bar surpasses the SMA threshold, the bar is highlighted, signaling potential unusual trading activity.
The core mechanism relies on the varip function from PineScript v5, which enables dynamic tracking of trade frequency. By comparing the current bar's trade count against a smoothed average, traders can quickly identify bars with abnormally high trading volume.
Why it may be useful
Understanding trade speed and volume can provide critical insights into market dynamics and potential algorithmic trading activity. This indicator helps traders detect potential high-frequency bot interventions, which could signal significant momentum shifts or upcoming price movements. By highlighting bars with unusual trade counts, traders gain an early warning system for potential market changes.
The unique aspect of this indicator is its ability to reveal trading activity that might otherwise go unnoticed. It transforms raw trade data into a visual representation of market intensity, allowing traders to make more informed decisions about market sentiment and potential trend reversals.
When to explore it
This indicator is most effective in fast-moving, high-liquidity markets where trade frequency can provide meaningful insights. It works best for short-term trading strategies, particularly in assets with significant algorithmic or high-frequency trading presence. Traders should use it as a complementary tool alongside other technical indicators to confirm potential market movements.
The signal is particularly useful during volatile market periods, such as major economic announcements, earnings reports, or significant global events. It can help traders identify moments of increased market activity and potential trend acceleration or deceleration.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
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