Volume vs Range Imbalance DetectorDescription :-
Concept :-
This indicator is designed to identify "Effort vs. Result" anomalies in the market using Volume Spread Analysis (VSA) concepts. It highlights specific candles where high trading activity (Volume) is occurring, but the price movement (Range) is restricted. This behavior often signals the presence of heavy absorption by buyers or sellers ("Smart Money" activity) before a potential reversal or continuation.
How It Works :-
The script combines two distinct methods of volume analysis into a single view
1. Structural Imbalance (Lime & Red Signals)
This logic detects major market anomalies by comparing the current candle against a 50-period average context.
The Logic: A signal is generated if the Volume is significantly higher than the average (default 1.618x the 50 SMA) AND the Price Range is significantly smaller than the average (default 1.272x the 50 ATR).
Lime Candle/Dot (Bullish Absorption): Massive volume with small range, closing in the upper 50% of the bar. This suggests sellers are dumping, but buyers are absorbing all orders, preventing the price from dropping.
Red Candle/Dot (Bearish Blockade): Massive volume with small range, closing in the lower 50% of the bar. This suggests buyers are pushing, but sellers are absorbing the demand, preventing the price from rising.
2. Hidden Activity (Orange Signals)
This logic is more sensitive and compares the current candle only to the previous candle.
The Logic: A signal is generated if the current Volume is higher than the previous bar's volume, but the current Range is smaller than the previous bar's range.
Orange Candle/Dot: This indicates "Churn." Effort is increasing, but the result (movement) is decreasing. It is often an early warning sign of congestion or a pending breakout.
Visual Guide
Lime Dot (Below Bar): Strong Buying Pressure (Bullish Imbalance).
Red Dot (Above Bar): Strong Selling Pressure (Bearish Imbalance).
Orange Dot (Above Bar): Hidden Activity / Churn (Warning).
Settings
Context Length: The lookback period for the moving averages (Default: 50).
Volume/Range Multipliers: Determine how strict the "Imbalance" signals are. Higher numbers result in fewer, more significant signals.
Show Hidden Activity: Toggle the orange signals on or off.
Disclaimer
This tool is for educational purposes only. Volume analysis is subjective and should be used in conjunction with other form
Indikator Pine Script®






















