OPEN-SOURCE SCRIPT
Volume Bubble Levels [BackQuant]
Volume Bubble Levels [BackQuant]
Overview
Volume Bubble Levels is a volume-expansion and liquidity-mapping tool designed to identify statistically significant participation events and project them forward as actionable structural levels.
Instead of treating volume as a secondary confirmation metric, this indicator treats volume spikes as primary events and builds a framework around them:
The result is a system that highlights where meaningful participation occurred, and more importantly, whether the market has returned to those areas.
This shifts the focus from “what price did” to “where size traded and what has or hasn’t been revisited since.”
Core idea
Markets move through phases of normal participation and abnormal participation. Most bars are noise. Occasionally, a bar prints with volume significantly above its baseline, indicating:
These events often leave behind structural footprints.
Volume Bubble Levels captures those footprints and answers:
Volume baseline and normalization
The first step is establishing what “normal” volume looks like.
The script computes a rolling moving average of volume:
You can choose the type:
Then the script computes a ratio:
This is the key metric.
Interpretation:
Everything in the script is built off this ratio.
Tiered volume classification
Instead of treating all volume spikes equally, the script classifies them into three tiers:
Defined as:
Each higher tier overrides the lower:
This creates a hierarchy of importance:
Directional context (bull vs bear volume)
Each volume event is also classified directionally:
This matters because:
So every event carries two dimensions:
Bubble visualization (what the circles mean)
Volume events are plotted directly on price as circular “bubbles.”
Key properties:
Size bucketing within tiers
Each tier is subdivided into five size buckets:
This is done by splitting each tier’s range into equal steps.
Example:
So a large Tier 1 bubble may still be smaller than a small Tier 2 bubble, preserving hierarchy.
What bubbles represent in practice
Each bubble is a localized participation event.
Interpretation:
They are not signals by themselves. They are markers of where something important happened.
Naked levels: projecting volume events forward
The core feature of this script is not the bubbles themselves, but what happens after them.
For every qualifying volume event, the script creates:
These are called naked levels.
Why both high and low:
What “naked” means
A level is “naked” if:
These are important because:
Level lifecycle
1) Creation
On a volume event:
2) Extension
Each level extends forward in time:
3) Takeout (resolution)
A level is considered “taken” when price trades through it:
Once taken:
4) Expiry
Levels also expire after a fixed number of bars:
This prevents infinite clutter and ensures relevance.
Why naked levels matter
These levels act like:
In practice:
This aligns with auction market theory:
Tier-aware level significance
Not all levels are equal:
The script reflects this visually:
So you can quickly identify:
Color system
Each tier has separate bull/bear colors.
This allows:
Because:
Line styling
You can choose:
This does not affect logic, only readability.
What this indicator is NOT
It is important to understand what this tool is not doing:
Instead, it is:
How to use it
1) Identify important zones
Focus on:
These represent areas of significant participation.
2) Track naked levels
Watch:
These often act as:
3) Watch level interactions
When price approaches a level:
4) Combine with structure
This tool works best with:
Example interpretations
Scenario 1: Strong bullish bubble cluster
Interpretation:
Scenario 2: Price returns to naked level
Interpretation:
Scenario 3: Level invalidation
Interpretation:
Strengths
Limitations
Summary
Volume Bubble Levels transforms abnormal volume events into forward-projected structural levels. By measuring volume relative to its own baseline, classifying it into tiers, and projecting both the high and low of those events, the indicator builds a dynamic map of where meaningful participation occurred and whether those areas remain unresolved. The bubbles highlight the event, but the real value comes from the naked levels, which act as evolving liquidity zones that can influence future price behavior.
Overview
Volume Bubble Levels is a volume-expansion and liquidity-mapping tool designed to identify statistically significant participation events and project them forward as actionable structural levels.
Instead of treating volume as a secondary confirmation metric, this indicator treats volume spikes as primary events and builds a framework around them:
- Detect abnormal volume relative to a rolling baseline.
- Classify those events into tiers based on intensity.
- Visualize them directly on price using scalable “bubble” markers.
- Project their high and low as forward levels (“naked levels”).
- Track whether those levels remain untouched, get retested, or are invalidated.
The result is a system that highlights where meaningful participation occurred, and more importantly, whether the market has returned to those areas.
This shifts the focus from “what price did” to “where size traded and what has or hasn’t been revisited since.”
Core idea
Markets move through phases of normal participation and abnormal participation. Most bars are noise. Occasionally, a bar prints with volume significantly above its baseline, indicating:
- Aggressive positioning,
- Large order execution,
- Liquidity events,
- Absorption or distribution,
- Forced flows (liquidations, stops, news reactions).
These events often leave behind structural footprints.
Volume Bubble Levels captures those footprints and answers:
- Where did abnormal participation occur?
- How strong was it relative to recent history?
- Have those levels been revisited?
- Are there still “untouched” zones where liquidity may remain?
Volume baseline and normalization
The first step is establishing what “normal” volume looks like.
The script computes a rolling moving average of volume:
- volMa = MA(volume, volMaLen, volMaType)
You can choose the type:
- SMA for stable baseline,
- EMA for faster adaptation,
- RMA for smoother response,
- WMA for weighted emphasis on recent bars.
Then the script computes a ratio:
- volRatio = volume / volMa
This is the key metric.
Interpretation:
- volRatio ≈ 1 → normal participation.
- volRatio > 1 → above-average participation.
- volRatio >> 1 → abnormal participation.
Everything in the script is built off this ratio.
Tiered volume classification
Instead of treating all volume spikes equally, the script classifies them into three tiers:
- Tier 1 — Elevated: moderate expansion above baseline.
- Tier 2 — High: strong participation.
- Tier 3 — Extreme: major volume event.
Defined as:
- Tier 1: volRatio ≥ t1Mult
- Tier 2: volRatio ≥ t2Mult
- Tier 3: volRatio ≥ t3Mult
Each higher tier overrides the lower:
- Tier 3 > Tier 2 > Tier 1
This creates a hierarchy of importance:
- Tier 1 = “noticeable”
- Tier 2 = “significant”
- Tier 3 = “structural”
Directional context (bull vs bear volume)
Each volume event is also classified directionally:
- Bull = close ≥ open
- Bear = close < open
This matters because:
- Bull volume spikes often represent aggressive buying or short covering.
- Bear volume spikes often represent aggressive selling or long liquidation.
So every event carries two dimensions:
- Magnitude (Tier 1 / 2 / 3)
- Direction (bull / bear)
Bubble visualization (what the circles mean)
Volume events are plotted directly on price as circular “bubbles.”
Key properties:
- Position: plotted at the closing price of the bar.
- Color: determined by tier and direction.
- Size: determined by how far the volume exceeds the threshold within its tier.
Size bucketing within tiers
Each tier is subdivided into five size buckets:
- Tiny
- Small
- Normal
- Large
- Huge
This is done by splitting each tier’s range into equal steps.
Example:
- Tier 1 spans from t1Mult → t2Mult.
- That range is divided into 5 segments.
- Higher volRatio within that tier = larger bubble.
So a large Tier 1 bubble may still be smaller than a small Tier 2 bubble, preserving hierarchy.
What bubbles represent in practice
Each bubble is a localized participation event.
Interpretation:
- Cluster of bubbles → sustained participation.
- Single large bubble → isolated liquidity event.
- Tier 3 bubble → major structural event, often worth tracking.
They are not signals by themselves. They are markers of where something important happened.
Naked levels: projecting volume events forward
The core feature of this script is not the bubbles themselves, but what happens after them.
For every qualifying volume event, the script creates:
- A horizontal line at the bar’s high.
- A horizontal line at the bar’s low.
These are called naked levels.
Why both high and low:
- High captures the upper boundary of the event.
- Low captures the lower boundary.
- Together, they define the full price range where abnormal volume occurred.
What “naked” means
A level is “naked” if:
- Price has not yet traded back through it.
These are important because:
- They represent unresolved areas.
- Liquidity may still be resting there.
- Market participants involved in the original event may still be positioned around that level.
Level lifecycle
1) Creation
On a volume event:
- High line and low line are created.
- Stored with metadata:
- price
- tier
- direction
- creation bar
2) Extension
Each level extends forward in time:
- Updated every bar.
- Projected to the right until resolved.
3) Takeout (resolution)
A level is considered “taken” when price trades through it:
- High level taken when: high > level price
- Low level taken when: low < level price
Once taken:
- The line is terminated.
- Removed from active tracking.
4) Expiry
Levels also expire after a fixed number of bars:
- If (current bar - birth bar) > extendBars → level is removed.
This prevents infinite clutter and ensures relevance.
Why naked levels matter
These levels act like:
- Liquidity magnets,
- Revisit zones,
- Areas of unfinished business.
In practice:
- Price often returns to high-volume zones.
- Untouched levels can act as targets.
- Revisits can trigger reactions, pauses, or reversals.
This aligns with auction market theory:
- Markets seek to revisit areas of high participation.
- Unfinished auctions tend to get completed.
Tier-aware level significance
Not all levels are equal:
- Tier 1 levels = weaker, more frequent.
- Tier 2 levels = meaningful.
- Tier 3 levels = major structural zones.
The script reflects this visually:
- Tier 3 lines are thicker.
- Colors differ by tier and direction.
So you can quickly identify:
- Which levels matter most.
Color system
Each tier has separate bull/bear colors.
This allows:
- Bullish volume zones vs bearish volume zones.
- Visual distinction between accumulation-type and distribution-type activity.
Because:
- A high-volume bullish bar and a high-volume bearish bar represent very different order flow contexts.
Line styling
You can choose:
- Dotted
- Dashed
- Solid
This does not affect logic, only readability.
What this indicator is NOT
It is important to understand what this tool is not doing:
- It is not a volume profile.
- It does not aggregate volume by price level.
- It does not measure cumulative delta.
- It does not predict direction directly.
Instead, it is:
- Event-based, not distribution-based.
- Forward-projecting, not historical summarizing.
- Structure-focused, not signal-focused.
How to use it
1) Identify important zones
Focus on:
- Tier 2 and Tier 3 bubbles.
- Clusters of bubbles.
These represent areas of significant participation.
2) Track naked levels
Watch:
- Untouched levels ahead of price.
- Levels near current price.
These often act as:
- Targets,
- Reaction zones,
- Liquidity pools.
3) Watch level interactions
When price approaches a level:
- Rejection → confirms level relevance.
- Clean break → invalidates it.
- Chop around level → absorption.
4) Combine with structure
This tool works best with:
- Trend context,
- Support/resistance,
- Market structure,
- Other flow indicators.
Example interpretations
Scenario 1: Strong bullish bubble cluster
- Multiple Tier 2–3 bullish bubbles form.
- Price moves away without revisiting.
Interpretation:
- Strong accumulation zone.
- Untouched lows may act as future support or targets.
Scenario 2: Price returns to naked level
- Price revisits a previously untested level.
Interpretation:
- Liquidity is being re-engaged.
- Potential reaction point.
Scenario 3: Level invalidation
- Price blows through a level with strong continuation.
Interpretation:
- That level no longer holds structural significance.
- Market has repriced beyond that participation zone.
Strengths
- Highlights meaningful participation events.
- Projects actionable forward levels.
- Separates noise from structural volume.
- Works across assets and timeframes.
Limitations
- Depends on volume quality (less reliable on low-liquidity assets).
- Does not indicate direction by itself.
- Can produce many levels in volatile environments.
- Requires interpretation, not plug-and-play signals.
Summary
Volume Bubble Levels transforms abnormal volume events into forward-projected structural levels. By measuring volume relative to its own baseline, classifying it into tiers, and projecting both the high and low of those events, the indicator builds a dynamic map of where meaningful participation occurred and whether those areas remain unresolved. The bubbles highlight the event, but the real value comes from the naked levels, which act as evolving liquidity zones that can influence future price behavior.
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オープンソーススクリプト
TradingViewの精神に則り、このスクリプトの作者はコードをオープンソースとして公開してくれました。トレーダーが内容を確認・検証できるようにという配慮です。作者に拍手を送りましょう！無料で利用できますが、コードの再公開はハウスルールに従う必要があります。
Check out whop.com/signals-suite for Access to Invite Only Scripts!
Or go to backquant.com/
Or go to backquant.com/
免責事項
これらの情報および投稿は、TradingViewが提供または承認する金融、投資、取引、またはその他の種類の助言もしくは推奨であることを意図したものではなく、またこれらに該当するものでもありません。詳細は利用規約をご覧ください。