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Stopping Volume

By LuxAlgoJun 13, 2026

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Stopping Volume is a purpose-built detector for 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 newest event bar.

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 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.

Original indicatorBuilt in-house by LuxAlgo

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