Volume Spike Levels

Volume Spike Levels turns the highest volume candles on any chart into support and resistance levels automatically, in real time and across every major timeframe at once. When one candle carries far more volume than the candles around it, that is where the largest positions changed hands, and price has a habit of reacting when it comes back to that spot.

Developed by Trend Friend, the indicator runs two volume spike detection engines side by side. The realtime engine watches your chart as it moves and draws a line the moment a candle locks in the highest volume of its designated window, with six independent lookback slots you can set anywhere from 15 minutes to 12 months. The higher timeframe engine reviews every completed 15 minute, hourly, four hour, daily, weekly, monthly, quarterly and yearly period, compares those values to an adaptive rolling average of previous volume bars and marks the prices where the heaviest volume traded, including a color filled important volume zone for each timeframe so you know exactly which areas deserve the closest attention.

If you can be patient and let price come to these levels instead of chasing candles in the middle of nowhere, you give yourself entries at prices where a reaction is likely, and you cut out a lot of the overtrading that happens in between levels.

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How the Levels Are Calculated

Big volume does not come from retail traders. It comes from large players building or unloading positions, and those players tend to defend the prices where they did it. So instead of averaging volume the way most volume tools do, this indicator hunts for the single candle that carried the most volume inside each window it watches and turns that candle's prices into levels:

Realtime Levels - Each of the six realtime slots watches a rolling time window on your chart. When a candle closes with the highest volume of its window, that candle's closing price becomes a level.
Higher Timeframe Levels - When a period completes, such as a day or a week, the indicator reviews that entire period at several smaller data resolutions, finds the most important volume candle at each resolution, and draws a level at each of those prices.
Important Volume Zones - For each higher timeframe, the highest volume candle at the finest resolution become the top and bottom of that timeframe's important zone, with a color fill between them so it stands out.

The way the indicator layers multiple data resolutions inside every period, and manages all of those levels across eight timeframe groups at once within TradingView's drawing limits, is handled by our custom collection engine, and the internals of that engine are what make this script worth protecting. The concept above is what it measures.

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Realtime Volume Spike Levels

Six independent realtime slots, each with its own lookback timeframe: 15 or 30 minutes, 1, 2, 4, 6, 8 or 12 hours, 1, 2 or 3 days, 1 or 2 weeks, or 1, 3 or 12 months.
Each line is drawn at the spike candle's closing price and lasts as long as the timeframe it belongs to, so a 60 minute level draws a line that covers one hour of chart time.
Each slot has its own on/off toggle, label, line color and a setting for how many past lines to keep.

Two display modes control how the realtime levels behave (higher timeframe levels are not affected):

Static Horizontal Lines Only (default) - Every spike draws its own fixed line that never updates, so you build a history of individual levels on the chart.
Variable Lines + Trend Coloring - Each slot keeps one moving line that jumps to the new level whenever a new spike happens, with the history of those moves kept on the chart. A background fill is drawn between price and each level: the bullish color when price is at or above that level and the bearish color when price is below it, which gives you a fast read on the trend compared to where the heavy volume came in.

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Higher Timeframe Levels and Important Volume Zones

Eight timeframe groups: 15 Minute, Hourly, Four Hour, Daily, Weekly, Monthly, Quarterly and Yearly.
Each group's levels are drawn at the start of a new period using the completed period's data, so a fresh set of daily levels appears when each new day opens.
The important zone for each timeframe is drawn as two lines with a color fill between them. These zones are the areas most likely to produce a strong price reaction, so they are the ones to watch closest.
Every group has its own line color and a setting for how many past periods to show, and most groups also have their own labels, line lengths and an Important Zones Only toggle. The daily and higher groups can also extend their lines to the right.
A master Important Zones Only switch strips every timeframe down to just the zones when you want a clean chart.

Keep in mind price will often range inside or near an important zone while the market decides on a direction, and breakouts away from these zones tend to move fast, so it pays to always know where the nearest zone sits on your chart.

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How to Trade with This Indicator

Continuation bounces - When price breaks out of its recent range and starts extending, wait for a volume spike level to print and for price to retrace back to it, then enter in the direction of the trend. Place your stop just beyond the pivot that bounced off the level.
Range reversals - When the market is ranging, find the spike levels near the top and bottom of the range and wait for price to reach one and start turning. Enter on the reversal and place your stop just beyond the pivot price made at the level.
Zone breakouts - When price ranges inside or near an important zone and then builds an accumulation just outside of it, trade the breakout in the same direction price moved away from the zone. These breakouts often move quickly.
Take profits at the next level - Whichever setup you trade, the next major spike level or zone is your natural target, so plan your exit at or just before it.
Trail your stop with lower timeframe levels - Use a lower timeframe slot's levels as price points to trail your stop loss to as price becomes supportive at each one and moves past it.
Be patient - The levels do the waiting for you. Standing aside until price actually reaches one keeps you out of the low quality trades in between.

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Alerts

The alerts are split into three separate event types so you always know exactly what fired:

Volume Spike Alerts - Fire when one of the realtime slots detects a new spike. One alert per slot plus an any-spike alert.
Level Cross Alerts - Fire when price crosses a level. Available for each realtime slot and for the Hourly, Daily, Weekly, Monthly, Quarterly and Yearly groups, plus combined any-level alerts. The 15 Minute and Four Hour groups are covered by their zone entry alerts.
Zone Entry Alerts - Fire when a candle wick crosses into an important volume zone. Available for every timeframe group from 15 Minute to Yearly, plus an any-zone alert.

A few things to make sure of when setting up alerts:

Spike and crossing alerts for the realtime slots only fire when the candle closes, so every alert matches a line that actually gets drawn on your chart.
Crossing and zone alerts only track the most recent levels of each timeframe, not older lines still on your chart.
Alerts only work for levels that are turned on and showing on your chart, so if you want alerts for Realtime 2, make sure the Realtime 2 levels are on.
Every alert is labeled the same as its levels are in the settings so you can easily pick the right one.

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Higher Timeframe Data, Level Confirmation and Repainting

No lookahead anywhere. The script never uses lookahead to read future data, and every piece of data it requests from other timeframes is confirmed data.

Higher timeframe levels never repaint. Each timeframe group's levels are calculated from a fully completed period and drawn once, at the moment the next period opens. After a level is drawn it is never moved, changed or redrawn. This also means you will not see a period's levels while that period is still forming, because the levels do not exist until the period completes. The only way a line leaves your chart is when it ages past your number of lines setting and the oldest one is removed to make room for the newest.

Realtime levels draw on candle close and never repaint. Spike detection for the realtime slots runs when a candle closes, so a line only appears once the spike is locked in, and it is never moved or removed afterward. You will never see an intrabar spike line that disappears before the close. In Variable Lines mode, each slot's line moves to the new level when a new spike confirms, and the trend color fill updates live with price the same way any live chart element does.

Level precision on higher timeframe charts. The higher timeframe levels are built from smaller resolution data. If your chart timeframe is above one of those resolutions, the indicator automatically uses your chart timeframe data in its place so it can still calculate, which makes the levels less precise on high timeframe charts. For the most precise levels, view lower timeframe charts.

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Settings Overview

Every setting has a tooltip, so make sure to hover over the "i" icon next to any setting and a popup will explain exactly what it does. The settings break down like this:

Master Settings - All labels on/off, all realtime levels on/off, Important Zones Only across every timeframe, all zone color fills on/off, the zone fill color, the realtime display mode with its bullish and bearish trend colors, and the Bar Index Threshold error fix.
Realtime Volume Spike Levels 1-6 - Each slot has its own on/off toggle, label toggle, lookback timeframe and line length, line color and number of past lines to keep.
Higher Timeframe Groups - Each of the eight groups has its own on/off toggle, zone color fill and line color, with labels, line lengths, Important Zones Only and extend lines right available on most groups.
Labels - The label offset distance from the current candle and the label text color.

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Markets and Chart Timeframes

This indicator works on any market that has volume data, including stocks, crypto, futures, forex and more.

It has been programmed to work on these chart timeframes: 15 and 30 seconds, 1, 2, 3, 4, 5, 10, 15, 30 and 45 minutes, 1, 2, 3, 4, 6, 8 and 12 hours, 1, 2 and 3 days, 1 and 2 weeks, and 1, 3 and 12 months. Make sure to stick to these timeframes, because other chart timeframes may give errors or irregular results.

Each higher timeframe group needs enough data underneath it to calculate, so each group only shows on chart timeframes at or below a certain size:

15 Minute levels - 5 minute chart or lower
Hourly levels - 15 minute chart or lower
Four Hour levels - 3 hour chart or lower
Daily levels - 12 hour chart or lower
Weekly levels - 1 day chart or lower
Monthly levels - 1 week chart or lower
Quarterly levels - 1 month chart or lower
Yearly levels - 3 month chart or lower

The realtime levels work on all supported chart timeframes.

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Important Notes and Limitations

TradingView allows an indicator to draw a maximum of 500 lines. If your settings go past that, TradingView starts deleting the oldest lines and a warning table appears at the top of the chart with the exact line count so you know to reduce the number of levels shown.
If a chart with very little historical data shows an index out of bounds error, hover over the red exclamation point next to the indicator name, note the first number in the error message, and set the Bar Index Threshold To Fix Errors setting slightly higher than that number. No need to worry, this just adjusts the calculations to fit that chart's data and clears the error.
On 1 to 5 minute charts, yearly and quarterly levels may not populate late in the year or quarter because TradingView limits how many historical bars an indicator can calculate on. The workaround is to open the daily chart, note the yearly and quarterly levels shown there, and draw horizontal lines at those prices on your lower timeframe chart. Unfortunately there is no way for us to work around this limit with code.
If a realtime slot's lookback timeframe is very long compared to your chart timeframe, like 1 Month on a 1 minute chart, the indicator cannot reach back far enough and the lines will bunch up at the most recent candles, or in Variable Lines mode the level will just follow price. If that happens, just lower that slot's lookback timeframe until the levels show up properly.
Levels are less precise on higher timeframe charts due to the data resolution swapping explained above, so view lower timeframe charts when you want the most precise levels.
No indicator is right all of the time and past results never guarantee future performance. These levels are areas to watch for price reactions, not promises, so always use your own judgment and manage your risk on every trade.

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