Pump Catcher [BitMEX] [Alerts]

The Pump Catcher [BitMEX] [Alerts] indicator is a momentum-based momentum tool designed to identify significant market moves by combining volume analysis with trend detection. It aims to catch "pumps" or sharp directional movements by filtering volume spikes through a smoothed trend baseline.

Usage

The tool is primarily used to identify entry points for long and short positions during periods of high relative volume and clear trend direction.

• Long Entries: Triggered when volume crosses above a specific threshold while the smoothed volume signal is rising and the MACD trend is positive.
• Short Entries: Triggered when volume crosses above the threshold while the signal is rising and the MACD trend is negative.
• Exits: The script suggests closing positions when the slow volume signal crosses above the fast signal, indicating a potential loss in momentum.

Users can integrate these signals with automated trading bots (like Autoview) using the built-in alert conditions for LONG, SHORT, and CLOSE.

Details

The indicator calculates a normalized volume ratio by comparing a short-term volume sum against a much longer smoothing period. This allows the script to detect volume "spikes" relative to the historical norm.

To ensure the spike is part of a sustained movement rather than a flash outlier, it uses two volume signals (Fast and Slow) and requires the Slow signal to be rising. Directional bias is filtered using a standard MACD calculation; a positive change in MACD indicates bullish momentum, while a negative change suggests bearish momentum.

Settings

MACD

• MACD - Fast Length: The period for the fast Exponential Moving Average used in trend detection.
• MACD - Slow Length: The period for the slow Exponential Moving Average used in trend detection.

Volume

• Volume - Threshold: The relative volume level required to trigger an entry signal.
• Volume - Fast Length: The EMA period for the fast volume signal.
• Volume - Slow Length: The EMA period for the slow volume signal.
• Volume - Length: The short-term lookback period for calculating current volume pressure.
• Volume - Smoothing: The long-term lookback period used to baseline the volume calculation.

FAQ

How do I interpret the background colors?

Green background shading indicates an active long signal, while red background shading indicates an active short signal. No shading suggests a neutral state or that an exit condition has been met.

Can I automate these signals?

Yes, the indicator includes specific alert conditions for Long, Short, and Close commands. These are compatible with various webhooks and bridge services for automated execution on exchanges like BitMEX.

How can I access Pump Catcher [BitMEX] [Alerts]?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.