OPEN-SOURCE SCRIPT
MHIDa Volume-Dry Pullback
A context tool that highlights a pullback (a dip) inside an uptrend where volume has dried up, i.e. it dropped below its own moving average.
WHAT IT DOES
It looks for three things together, all read on closed bars: (1) an uptrend, defined as price above a 50-period EMA; (2) a dip, defined as price below a 20-period EMA (the mean price tends to revert toward) while RSI(14) is below 45; (3) volume that dried up, meaning the current bar's volume is below a configurable fraction (default 0.7) of its own 20-bar average. Optionally it also requires the current bar to close higher than the previous one, as a sign the dip is turning up. When all conditions align, a small triangle marks the bar and the dip bars are shaded gray.
WHY VOLUME MATTERS HERE
The idea: a pullback on low volume often carries less selling conviction than a pullback on heavy volume, so it can be read as a quieter dip inside the broader uptrend rather than the start of a real reversal. This is not a proven edge on its own -- it is a lens to read what the chart already shows.
HOW TO USE IT
All lengths and thresholds are inputs, grouped as Trend gate, Volume dried up, and Dip read -- tune them to the symbol and timeframe you watch, they are a starting point, not a finished setup. The background is lightly shaded while price is above the trend EMA, the two EMAs are plotted for reference, and the marker/alert only fire on confirmed, closed bars (no repainting, no lookahead).
DISCLAIMER
This is a context tool meant to support your own reading of the chart. It is NOT a buy/sell signal, NOT financial advice, and NOT a standalone trading system. Always do your own analysis and manage your own risk.
WHAT IT DOES
It looks for three things together, all read on closed bars: (1) an uptrend, defined as price above a 50-period EMA; (2) a dip, defined as price below a 20-period EMA (the mean price tends to revert toward) while RSI(14) is below 45; (3) volume that dried up, meaning the current bar's volume is below a configurable fraction (default 0.7) of its own 20-bar average. Optionally it also requires the current bar to close higher than the previous one, as a sign the dip is turning up. When all conditions align, a small triangle marks the bar and the dip bars are shaded gray.
WHY VOLUME MATTERS HERE
The idea: a pullback on low volume often carries less selling conviction than a pullback on heavy volume, so it can be read as a quieter dip inside the broader uptrend rather than the start of a real reversal. This is not a proven edge on its own -- it is a lens to read what the chart already shows.
HOW TO USE IT
All lengths and thresholds are inputs, grouped as Trend gate, Volume dried up, and Dip read -- tune them to the symbol and timeframe you watch, they are a starting point, not a finished setup. The background is lightly shaded while price is above the trend EMA, the two EMAs are plotted for reference, and the marker/alert only fire on confirmed, closed bars (no repainting, no lookahead).
DISCLAIMER
This is a context tool meant to support your own reading of the chart. It is NOT a buy/sell signal, NOT financial advice, and NOT a standalone trading system. Always do your own analysis and manage your own risk.
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.