Dollar Volume (Qullamaggie Style)

The Dollar Volume (Qullamaggie Style) indicator calculates the total monetary value of trades by multiplying asset price by volume, providing a precise measure of institutional liquidity and momentum for identifying Episodic Pivots (EP).

Usage

The Usage section focuses on identifying high-conviction trading opportunities by analyzing cash flow rather than just share count. This tool is primarily used by momentum traders to filter for stocks experiencing significant institutional accumulation.

• Identifying Episodic Pivots (EP): Traders look for bars where the Dollar Volume significantly exceeds the 50-period Simple Moving Average (SMA). These "spikes" often precede major price moves.
• Liquidity Comparison: Unlike standard volume, which treats a $1 stock and a $500 stock the same way if 1,000 shares are traded, Dollar Volume reveals that the $500 stock has $500,000 in liquidity versus $1,000 for the penny stock.
• Visual Analysis: The script includes a 50-period SMA (AVGCV50) as a baseline. When a volume bar closes above this line, it signals abnormal activity.
• Data Readout: A clean UI table in the corner of the chart automatically formats large figures into Millions (M) or Billions (B), allowing for quick assessment of current liquidity levels.

Details

The script is modeled after the methodology used by momentum trader Kristjan Qullamaggie in TC2000. While standard volume indicators only display the number of contracts or shares traded, this script implements the Close * Volume calculation to reflect actual USD participation.

The implementation includes a specific formatting method to ensure that high-liquidity assets remain readable on the chart. By using a 50-period SMA, the script establishes a dynamic threshold for what constitutes "normal" trading activity, helping users isolate genuine institutional "whale" entries from retail noise. The alert system is optimized to trigger specifically when Dollar Volume crosses above this moving average.

Settings

Color Settings

• Volume Bar Color: Sets the color of the vertical columns representing dollar volume.
• Opacity (0-100): Adjusts the transparency of the volume columns for better chart visibility.
• 50 MA Line Color: Defines the color of the 50-period Simple Moving Average line used to track average liquidity.

FAQ

Why is Dollar Volume better than standard volume for momentum trading?

Standard volume can be misleading when comparing stocks of different price points. Dollar Volume normalizes the data to show the actual dollar amount flowing into an asset, which is a more accurate representation of institutional commitment and liquidity.

What does the 50-period SMA represent?

The 50-period SMA acts as a benchmark for average liquidity over the last 50 bars. When current Dollar Volume breaks significantly above this line, it indicates a surge in interest that may lead to a volatility expansion or trend continuation.

How do I access the Dollar Volume (Qullamaggie Style) indicator?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.