# Volume Signature per Pattern Volume Signature per Pattern is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Detects consolidations whose 14-bar span compresses to within 2x the 200-bar ATR, then audits the classical volume signature: contraction while the pattern forms and expansion of at least 1.5x recent average at the break. Every resolved breakout is tagged Confirmed or Suspect, with zone boxes, a live formation-volume read, and a dashboard verdict. - Indicator in the LuxAlgo Library, by LuxAlgo, published Jun 14, 2026. - Access: free. - Concepts: [Volume Signature per Pattern](https://www.luxalgo.com/library/concept/volume-signature-per-pattern/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=hj442brudel1peg26cqzf8ls - Page: https://www.luxalgo.com/library/indicator/volume-signature-per-pattern/ **Volume Signature per Pattern** automates the classical audit behind the [volume signature per pattern](https://www.luxalgo.com/library/concept/volume-signature-per-pattern/) idea. When a consolidation is flagged (a 14-bar span compressed to within 2 times the 200-bar ATR), a zone box locks onto the window's extremes and the audit begins: the least-squares drift of volume across the formation, and the expansion demanded at the break. A break on contracting formation volume and at least 1.5x average volume is tagged **Confirmed**; anything else is **Suspect**, and the resolved zone fades to match. ## How to Trade the Volume Signature per Pattern? - **Confirmed tag**: both legs of the textbook signature passed. Quiet while coiling, expansion at the boundary. - **Suspect tag**: the signature failed on one leg or both, the breaks charting texts warn about; consider waiting for a retest. - **Formation Volume read**: the running drift inside the zone. Negative and falling is the textbook shape. - **Dashboard**: the live audit, the volume a breakout needs right now, and the last verdict. Five alerts cover new consolidations and both directions of confirmed and suspect breakouts; hovering a tag shows the full audit. ## Volume Signature per Pattern Settings - **Detection Window** (default 14): bars whose high-low span must compress to flag a consolidation. - **Volatility Baseline** (default 200): the long-run ATR yardstick of the compression test. - **Compression Threshold** (default 2): span at or below this ATR multiple flags the coil. - **Breakout Basis** (default Close): resolve on a close beyond the zone, or any wick with High / Low. - **Average Volume Length** (default 20): the volume SMA snapshotted before the pattern and reread at the break. - **Breakout Expansion Multiple** (default 1.5): what the break bar must reach versus recent average. - Dashboard and style toggles cover zones, **Show Last** (default 10), the formation read, and the quality tags. ## Frequently Asked Questions ### How does this differ from Volume Dry-up? The [Volume Dry-up build](https://www.luxalgo.com/library/indicator/volume-dry-up/) qualifies individual quiet sessions against an average; this build grades the whole pattern (a regression across the consolidation plus the expansion check at the boundary) into a per-breakout verdict. ### Does a Confirmed tag mean the breakout will hold? No. The tag reports that volume matched the textbook shape, nothing more; breaks with clean signatures still fail. Weigh it alongside structure and higher-timeframe context. ### What patterns does the detector recognize? It detects compression, not geometry: the zone stands in for a coiling flag, triangle, or trading range without classifying which. The signature audit runs identically on each, which is the point. ## Related indicators - [Gap Fill Breakouts](https://www.luxalgo.com/library/indicator/gap-fill-breakouts/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/gap-fill-breakouts.md - [Ascending Base](https://www.luxalgo.com/library/indicator/ascending-base/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/ascending-base.md - [On-neck / In-neck / Thrusting](https://www.luxalgo.com/library/indicator/on-neck-in-neck-thrusting/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/on-neck-in-neck-thrusting.md - [Rising/falling Three Methods](https://www.luxalgo.com/library/indicator/rising-falling-three-methods/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/rising-falling-three-methods.md - [Swing Highs/Lows & Candle Patterns](https://www.luxalgo.com/library/indicator/swing-highs-lows-candle-patterns/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/swing-highs-lows-candle-patterns.md - [Candle 2 Closure](https://www.luxalgo.com/library/indicator/candle-2-closure/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/candle-2-closure.md - [Breakaway Fair Value Gaps](https://www.luxalgo.com/library/indicator/breakaway-fair-value-gaps/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/breakaway-fair-value-gaps.md - [Channel Continuation](https://www.luxalgo.com/library/indicator/channel-continuation/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/channel-continuation.md --- Source: https://www.luxalgo.com/library/indicator/volume-signature-per-pattern/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/