Volume Dry-up

Volume Dry-up finds sessions where turnover quietly disappears — the 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 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.