# Volume Dry-up

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

Flags sessions whose turnover contracts to a fraction of its 50-bar average, with an optional range-contraction pair and pivot proximity filter. The lightest print of the base lookback earns the extreme dry-up (VDU) tag, and a 1.5x expansion within a 5-bar window resolves the quiet as a bullish expansion or bearish break, marked on both the volume pane and the price chart.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Jun 8, 2026.
- Access: free.
- Concepts: [Volume Dry-up](https://www.luxalgo.com/library/concept/volume-dry-up/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=z555xk2ftsjxt63ke48qidzt
- Page: https://www.luxalgo.com/library/indicator/volume-dry-up/

**Volume Dry-up** finds sessions where turnover quietly disappears (the [volume dry-up](https://www.luxalgo.com/library/concept/volume-dry-up/) growth-stock methods read as supply exhaustion), then watches for the expansion that answers it. A confirmed session qualifies when volume prints at or below half its 50-bar average, optionally with a contracting high-low spread; the lightest print of the lookback earns the extreme dry-up (VDU) tag. Qualified sessions color the columns, tint the price chart, and arm a resolution window: decisive expansion within 5 bars is graded bullish or bearish.

## How to Trade the Volume Dry-up?

- **Dry-up columns**: dormancy, not a signal. Read the tinted bars against the price structure they sit in.
- **VDU dot**: the quietest trade of the entire lookback, the extreme read late in a base.
- **Bullish Expansion triangle**: an up close on at least 1.5x average volume inside the window, the constructive resolution.
- **Bearish Break triangle**: heavy volume on a down close. Supply answered the test; the constructive read is invalidated.

All four events carry alerts; the dashboard tracks relative volume, bar spread, the dry-up count, and the sequence state.

## Volume Dry-up Settings

- **Volume Baseline** (default 50): bars in the volume and spread averages that stand in for normal.
- **Dry-up Threshold** (default 0.5): baseline fraction at or below which a session qualifies.
- **Base Lookback** (default 50): window for the VDU tag, pivot filter, and dry-up count.
- **Range Contraction** (default enabled, fraction 1): the bar's spread must sit at or below that fraction of its average.
- **Pivot Proximity Filter** (default disabled, distance 5): only qualify quiet sessions closing within 5% of the lookback high.
- **Expansion Multiple** (default 1.5), **Resolution Window** (default 5): what counts as decisive expansion and how long the link stays live.
- Dashboard and style toggles cover the panel, chart markers, and the dry-up tint.

## Frequently Asked Questions

### How does this relate to the Volatility Contraction Pattern?

The [Volatility Contraction Pattern](https://www.luxalgo.com/library/indicator/volatility-contraction-pattern/) tracks the price side of a tightening base; this build reads the volume side. Enabling Range Contraction demands both halves on the qualifying bar.

### Is a dry-up a buy signal?

No. The quiet is a precondition; the trigger is the linked expansion, and it can resolve either way: heavy selling into a quiet base settles the supply test in the sellers' favor.

### When should I enable the Pivot Proximity Filter?

When screening for breakout candidates. Quiet near the top of the base is the constructive location. Leave it off to also surface pullback dry-ups and quiet retests of a low, where location is read from the chart.

## Related indicators

- [Volume Bubbles & Liquidity Heatmap](https://www.luxalgo.com/library/indicator/volume-bubbles-liquidity-heatmap/) (Volume Spike): markdown at https://www.luxalgo.com/library/indicator/volume-bubbles-liquidity-heatmap.md
- [Support and Resistance Levels with Breaks](https://www.luxalgo.com/library/indicator/support-and-resistance-levels-with-breaks/) (Volume at Breakout): markdown at https://www.luxalgo.com/library/indicator/support-and-resistance-levels-with-breaks.md
- [HTF Volume Spike & Imbalance Projection](https://www.luxalgo.com/library/indicator/htf-volume-spike-imbalance-projection/) (Volume Spike): markdown at https://www.luxalgo.com/library/indicator/htf-volume-spike-imbalance-projection.md
- [Session Volume Moving Average](https://www.luxalgo.com/library/indicator/session-volume-moving-average/) (Relative Volume): markdown at https://www.luxalgo.com/library/indicator/session-volume-moving-average.md
- [Volumetric Toolkit](https://www.luxalgo.com/library/indicator/volumetric-toolkit/) (Volume Spike): markdown at https://www.luxalgo.com/library/indicator/volumetric-toolkit.md
- [Luminance Breakout Engine](https://www.luxalgo.com/library/indicator/luminance-breakout-engine/) (Volume at Breakout): markdown at https://www.luxalgo.com/library/indicator/luminance-breakout-engine.md
- [Volume Surprise](https://www.luxalgo.com/library/indicator/volume-surprise/) (Relative Volume): markdown at https://www.luxalgo.com/library/indicator/volume-surprise.md
- [Volume by Time](https://www.luxalgo.com/library/indicator/volume-by-time/) (Relative Volume): markdown at https://www.luxalgo.com/library/indicator/volume-by-time.md

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