OPEN-SOURCE SCRIPT
MHIDa Volume-Dry Pullback
A trend-context tool. It highlights a pullback (dip) inside an uptrend where trading volume has dried up, i.e. current volume has dropped below its own moving average. The idea, to be read together with the chart: a dip on low volume often carries less conviction behind the down-move than a dip on heavy volume.
How it is calculated:
- Trend gate: price above an EMA (default length 50) marks the uptrend context.
- Dip read: price below a shorter EMA mean (default length 20) together with RSI (default length 14) below a threshold (default 45) marks a pullback.
- Volume dry: current volume below a fraction (default 0.7) of its own moving average (default length 20) marks the volume drying up.
- Optional confirmation: current close above the previous close (price turning back up).
When all conditions line up, the bar is marked with a small triangle below the candle, the dip bars are tinted, and the uptrend background is highlighted. Every threshold is a free, adjustable input: the defaults are a starting point to explore, not a tuned trading setup. It works on any market and timeframe.
How to use: add it to the chart and adjust the EMA lengths, the volume-dry threshold, and the RSI dip level to fit the symbol and timeframe you are studying.
Disclaimer: this is a context tool meant to support your own reading of the chart. It is not a signal, not financial advice, and not a standalone winning strategy. Always do your own analysis and make your own decisions.
How it is calculated:
- Trend gate: price above an EMA (default length 50) marks the uptrend context.
- Dip read: price below a shorter EMA mean (default length 20) together with RSI (default length 14) below a threshold (default 45) marks a pullback.
- Volume dry: current volume below a fraction (default 0.7) of its own moving average (default length 20) marks the volume drying up.
- Optional confirmation: current close above the previous close (price turning back up).
When all conditions line up, the bar is marked with a small triangle below the candle, the dip bars are tinted, and the uptrend background is highlighted. Every threshold is a free, adjustable input: the defaults are a starting point to explore, not a tuned trading setup. It works on any market and timeframe.
How to use: add it to the chart and adjust the EMA lengths, the volume-dry threshold, and the RSI dip level to fit the symbol and timeframe you are studying.
Disclaimer: this is a context tool meant to support your own reading of the chart. It is not a signal, not financial advice, and not a standalone winning strategy. Always do your own analysis and make your own decisions.
Open-source script
In true PulseWire spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by PulseWire. Read more in the Terms of Use.
Open-source script
In true PulseWire spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by PulseWire. Read more in the Terms of Use.