# Stopping Volume

Stopping Volume is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

Stopping Volume flags bars where at least twice baseline volume prints the lowest low of a 20-bar decline yet closes mid-range or higher, then tracks the absorption zone through a 5-bar stall window and a low-volume test. An event-anchored VWAP follows the latest stopping-volume zone, with optional topping-out detection and eight alert conditions.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Jun 13, 2026.
- Access: free.
- Concepts: [Stopping Volume](https://www.luxalgo.com/library/concept/stopping-volume/) (primary), [Volume Spread Analysis](https://www.luxalgo.com/library/concept/volume-spread-analysis/)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=dph2024uuebnm7rhf7z3y67w
- Page: https://www.luxalgo.com/library/indicator/stopping-volume/

**Stopping Volume** is a purpose-built detector for [stopping volume](https://www.luxalgo.com/library/concept/stopping-volume/) events, the moment heavy trade halts a sustained decline. A candidate must print the window's lowest low on abnormal volume yet close mid-range or higher; qualifying bars are tagged SV, open a low-to-mid-range absorption zone and anchor a VWAP there.

## How to Trade the Stopping Volume?

- **SV label**: abnormal volume into new lows with the close well off the low. Watch for the decline to stall.
- **Stall confirmed**: no close below the event extreme within the stall window (huge effort, no result) turns the zone active.
- **Test label**: a later dip into the zone on visibly shrunken volume, holding: the classic confirmation.
- **Supply label and broken zones**: heavy volume on a retest warns the decline may resume; a close beyond the event extreme invalidates the zone.

The event-anchored VWAP colors bullish while price holds above it; losing it warns the absorbing buyers are underwater. Eight alerts cover events, stalls, tests, warnings, invalidations and VWAP loss.

## Stopping Volume Settings

- **Downtrend Lookback** (default 20): the candidate must print this window's lowest low.
- **Volume Baseline Length** (default 20): the relative-volume yardstick.
- **Abnormal Volume Multiple** (default 2): minimum relative volume for a candidate.
- **Minimum Close Position** (default 0.5): lowest acceptable close location in the bar range.
- **Require Wide Spread** (default disabled): also demand above-average range.
- **Stall Window** (default 5): bars in which a close beyond the extreme voids the setup.
- **Detect Topping-Out Volume** (default disabled): mirror the whole engine at highs, with TV labels.
- **Test Volume Maximum** (default 1): highest relative volume allowed on a test.
- **Show Event Zones** (default enabled), **Zone Duration** (default 200) and **Maximum Tracked Zones** (default 5).
- **VWAP From Latest Event** (default enabled): anchors a VWAP at the bar that opened the most recent stopping-volume zone.

## Frequently Asked Questions

### Is an SV bar a buy signal by itself?

No. It shows demand arriving, not a finished reversal. The build encodes classical patience: the stall window must complete, then the stronger entry waits for a low-volume test that holds.

### How does this relate to Climactic Action?

The events overlap: a selling climax often prints stopping volume. [Climactic Action](https://www.luxalgo.com/library/indicator/climactic-action/) hunts blow-off extremes in either direction; this build isolates the absorption mechanic, following it through stall, test and invalidation.

### Why does the indicator show a notice instead of signals?

Every rule is volume-relative, so real volume data is required; symbols reporting none show a notice rather than misleading signals.

## Related indicators

- [No-demand / No-supply Bars](https://www.luxalgo.com/library/indicator/no-demand-no-supply-bars/) (Volume Spread Analysis): markdown at https://www.luxalgo.com/library/indicator/no-demand-no-supply-bars.md
- [VSA Test Bar](https://www.luxalgo.com/library/indicator/vsa-test-bar/) (Volume Spread Analysis): markdown at https://www.luxalgo.com/library/indicator/vsa-test-bar.md
- [Climactic Action](https://www.luxalgo.com/library/indicator/climactic-action/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/climactic-action.md
- [Strength/weakness Background](https://www.luxalgo.com/library/indicator/strength-weakness-background/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/strength-weakness-background.md
- [Value Area Reversion Signals](https://www.luxalgo.com/library/indicator/value-area-reversion-signals/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/value-area-reversion-signals.md
- [Structure Volume Profile Setups](https://www.luxalgo.com/library/indicator/structure-volume-profile/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/structure-volume-profile.md
- [AMD POC Trade Setup](https://www.luxalgo.com/library/indicator/amd-poc-trade-setup/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/amd-poc-trade-setup.md
- [Volume Footprint](https://www.luxalgo.com/library/indicator/volume-footprint/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/volume-footprint.md

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Source: https://www.luxalgo.com/library/indicator/stopping-volume/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/
