Ants Indicator [MVP]Overview This indicator is based on the research and trading concepts of David Ryan, a three-time U.S. Investing Champion and protégé of William O’Neil. The "Ants" indicator is designed to detect institutional accumulation—footprints of "smart money" entering a stock aggressively over a sustained period.
David Ryan discovered that the biggest winning stocks often showed a specific pattern before their major moves: consistent buying (volume) and price appreciation over a short window (12-15 days). This persistent buying creates the appearance of "ants" marching up the chart.
The MVP Logic (Momentum, Volume, Price) The indicator looks for the confluence of three specific criteria over a 15-day lookback period:
Momentum: The stock closed higher in at least 12 out of the last 15 days. This shows persistent demand.
Volume: The average volume over the last 15 days is at least 20-25% higher than the 50-day average volume. This confirms institutional participation.
Price: The price has increased by at least 20% over the last 15 days.
Indicator Features & Signal Colors This script visualizes these conditions using diamond markers above the bars. The colors indicate which criteria are met:
🟢 Green Ant (MVP): The Holy Grail. Momentum + Volume + Price conditions are ALL met. This represents the strongest institutional buying.
🟡 Yellow Ant: Momentum + Volume (Price increase is < 20%).
🔵 Blue Ant: Momentum + Price (Volume increase is < 20%).
⚪ Gray Ant: Momentum only (12/15 up days, but lacking volume and price explosive moves).
Advanced Features: Topping & Extension Detection While "Ants" indicate strength, they also appear when a stock is becoming extended (climax top). This script includes a Smart Tooltip.
Hover over any diamond to see detailed statistics:
Exact MVP counts (e.g., "Close Up: 13/15").
Percentage extended from the 50-day SMA.
ATR Multiple: How far price is from the 50 SMA in terms of volatility. High readings (e.g., >100% extension or high ATR multiples) can signal a potential top rather than a buy entry.
How to Use for Trading DO NOT simply buy when a green diamond appears.
Identify: Use the indicator to find stocks under heavy accumulation.
Wait: "Ants" often appear when a stock is extended. Wait for the stock to consolidate, form a High Tight Flag, or pull back to the 10 EMA or 21 EMA.
Execute: Enter on the breakout from the consolidation area that forms after the Ants appeared.
Formula & Settings
Lookback Period: 15 Days (Default)
Momentum Threshold: 12 Up days (Default)
Volume Filter: +20% vs 50-SMA Volume
Price Filter: +20% return in lookback period
Credits Concept by David Ryan. Script logic adapted for TradingView Pine Script v6.
