Volume Scanner (Spikes & Drops) [Context]

📌 Purpose
This indicator detects significant volume spikes or drops and optionally filters them by price context (local highs/lows).
It helps identify potential breakout or exhaustion points with improved signal quality compared to raw volume alerts.

🧠 How It Works
1. Volume Spike / Drop Detection
SMA Volume over N bars is calculated as baseline.

Volume Spike: Volume > SMA × Spike Multiplier (default 1.5×).

Volume Drop: Volume < SMA × Drop Multiplier (default 0.5×).

2. Context Filter (optional)
When Use Context = ON:

Bullish Context: Volume spike at/near local price high (last Lookback bars).

Bearish Context: Volume drop at/near local price low (last Lookback bars).

3. Signal Gap
Minimum spacing between signals (Min Gap Bars) prevents excessive clustering.

4. Visuals
Background shading:

Green = Volume Spike in bullish context.

Red = Volume Drop in bearish context.

Alerts can be configured for both conditions.

📈 How to Use
Volume Spikes near highs can indicate breakouts or exhaustion tops.

Volume Drops near lows can signal liquidity dry-up or potential reversals.

Combine with price action or support/resistance for confirmation.

Recommended Timeframes: Works on all timeframes; more reliable on 15m, 1h, 4h.
Markets: Crypto, Forex, Stocks.

⚙️ Inputs
Volume SMA Length

Spike Multiplier / Drop Multiplier

Use Context (High/Low filter)

Min Gap Bars (avoid clustered signals)

⚠️ Disclaimer
This script is for educational purposes only. It does not constitute financial advice.
Always test thoroughly before live trading.