Order Flow Volume Spike is an overlay indicator that highlights “high-conviction” momentum candles by combining a volume spike filter, a candle-based order flow imbalance model, and dual trend confirmation (EMA + VWAP). It’s designed to surface impulsive continuation moves where participation (volume) and direction (price action) align.
How it works
Volume spike: Current volume must exceed a moving average baseline (Volume SMA over the selected lookback) multiplied by the Volume Spike Threshold.
Relative volume:volume / volume_ma must also be greater than the same threshold (extra confirmation).
Order flow (proxy): “Buying volume” is assigned to bullish candles (close > open) and “selling volume” to bearish candles (close < open). Both are smoothed with a 5-bar SMA to estimate buying/selling pressure.
Order flow ratio:buying_pressure / selling_pressure. Bullish bias requires the ratio to exceed Order Flow Strength; bearish bias requires it to fall below 1 / Order Flow Strength.
Price action strength: The signal candle must have a strong body (body/range > 0.6) and positive/negative 3-bar momentum (ta.change(close, 3)).
Trend confirmation: Longs require price above the EMA and above VWAP; shorts require price below the EMA and below VWAP.
