Volume Signature per Pattern

Volume Signature per Pattern automates the classical audit behind the 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 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.