Volume Pulse Dots

Relative Volume at a Glance

Volume Pulse Dots is a lightweight, price-overlay indicator designed to highlight unusual volume activity directly on the chart, without adding clutter or a separate volume pane.

Instead of raw volume bars, this script uses relative volume (rVol) — current volume compared to a moving average of recent volume — to visually flag moments when participation meaningfully deviates from normal.

How It Works

Relative volume is calculated as:

Current volume ÷ Volume moving average (user-defined length)

Based on this ratio, small dots are plotted on the chart:
• High relative volume (green dot below bar)
Signals increased participation compared to recent activity. Often appears during momentum moves, breakouts, or strong continuation candles.
• Very high relative volume (larger cyan dot below bar)
Indicates extreme participation. Common near major breakouts, capitulation candles, or key inflection points.
• Low relative volume (gray dot above bar)
Highlights weak participation. These candles often represent fake moves, fading momentum, or price drifting without conviction.

Dots are intentionally subtle and plotted directly on price to keep context clear while staying out of the way.

How to Use It

This indicator is not a standalone signal generator. It works best when combined with:
• VWAP and EMA structure
• Key support and resistance levels
• Candlestick context (range, wicks, follow-through)
• Price location relative to the open, highs, or prior day levels

Examples:
• High rVol dots near VWAP can confirm real participation
• Very high rVol dots at extended levels may signal exhaustion
• Low rVol dots during breakouts often warn of weak follow-through

Customization

You can adjust:
• Volume moving average length
• Thresholds for high, very high, and low relative volume
• Optional display of the rVol value in the status line (no extra pane)

Design Philosophy
• No separate volume pane
• No alerts or signals
• No repainting
• Minimal visual footprint

This tool is meant to quietly surface information that experienced traders already look for, without distracting from price.