OPEN-SOURCE SCRIPT
MHIDa Volume-Dry Pullback
MHIDa Volume-Dry Pullback is a context tool for reading pullbacks (dips) inside an uptrend where volume has dried up.
WHAT IT DOES
It flags bars where three conditions line up: (1) price is above a longer EMA (the uptrend gate), (2) price has pulled back below a shorter EMA mean while RSI is below a configurable "dip" threshold, and (3) current volume is below a fraction of its own moving average (volume has "dried up"). Optionally it also requires the current close to be higher than the previous close (a turn-up confirmation).
WHY VOLUME AND PRICE ARE READ TOGETHER
A pullback that happens on light volume usually carries less selling conviction than a pullback on heavy volume. Reading the two together (price structure + volume) gives more context than price alone. The indicator combines a trend/mean-reversion read (EMA gate, EMA mean, RSI) with a volume-average read in one tool because they qualify the same event from two different angles: one measures distance/momentum, the other measures how much the crowd participated in the move.
HOW IT IS CALCULATED
- EMA-gate: an exponential moving average (default length 50) used only to define the uptrend (close above it).
- EMA mean: a shorter exponential moving average (default length 20) used as the pullback reference (close below it = a dip).
- RSI (default length 14): the dip counts as "stretched" when RSI is below a configurable threshold (default 45).
- Volume average: a simple moving average of volume (default length 20). Volume is "dried up" when it drops below a configurable fraction of that average (default 0.7).
- Everything is read on closed bars only, no lookahead.
HOW TO USE IT
A lime triangle below the bar marks a bar where all conditions line up (uptrend + dip + dry volume, optionally + turn-up). Bars that are just "dip + dry volume" (without the full condition set) are also lightly shaded in gray as a softer visual cue. Use the highlighted areas as context to support your own reading of the chart, not as a buy signal. All inputs are adjustable in the settings, and the defaults are a starting point, not an optimized setup: tune them to the symbol and timeframe you are watching.
This is a context and educational tool. It is not a signal, not financial advice, and not a standalone trading system. Always do your own analysis and make your own decisions.
WHAT IT DOES
It flags bars where three conditions line up: (1) price is above a longer EMA (the uptrend gate), (2) price has pulled back below a shorter EMA mean while RSI is below a configurable "dip" threshold, and (3) current volume is below a fraction of its own moving average (volume has "dried up"). Optionally it also requires the current close to be higher than the previous close (a turn-up confirmation).
WHY VOLUME AND PRICE ARE READ TOGETHER
A pullback that happens on light volume usually carries less selling conviction than a pullback on heavy volume. Reading the two together (price structure + volume) gives more context than price alone. The indicator combines a trend/mean-reversion read (EMA gate, EMA mean, RSI) with a volume-average read in one tool because they qualify the same event from two different angles: one measures distance/momentum, the other measures how much the crowd participated in the move.
HOW IT IS CALCULATED
- EMA-gate: an exponential moving average (default length 50) used only to define the uptrend (close above it).
- EMA mean: a shorter exponential moving average (default length 20) used as the pullback reference (close below it = a dip).
- RSI (default length 14): the dip counts as "stretched" when RSI is below a configurable threshold (default 45).
- Volume average: a simple moving average of volume (default length 20). Volume is "dried up" when it drops below a configurable fraction of that average (default 0.7).
- Everything is read on closed bars only, no lookahead.
HOW TO USE IT
A lime triangle below the bar marks a bar where all conditions line up (uptrend + dip + dry volume, optionally + turn-up). Bars that are just "dip + dry volume" (without the full condition set) are also lightly shaded in gray as a softer visual cue. Use the highlighted areas as context to support your own reading of the chart, not as a buy signal. All inputs are adjustable in the settings, and the defaults are a starting point, not an optimized setup: tune them to the symbol and timeframe you are watching.
This is a context and educational tool. It is not a signal, not financial advice, and not a standalone trading system. 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.