Clean Volume (SUV)

The Problem with Raw Volume

Traditional volume bars tell you how much traded, but not whether that amount is unusual. This creates noise that misleads traders:

Stock A averages 1M shares with wild daily swings (500K-2M is normal). Today's 2M volume looks like a spike—but it's just a routine high day.

Stock B averages 1M shares with rock-steady volume (950K-1.05M typical). Today's 2M volume is genuinely extraordinary—institutions are clearly active.

Both show identical 200% relative volume. But Stock B's reading is far more significant. Raw volume and simple relative volume (RVol) can't distinguish between these situations, leading to:

- False signals on naturally volatile stocks
- Missed signals on stable stocks where smaller deviations matter
- Inconsistent comparisons across different securities

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A Solution: Standardized Unexpected Volume (SUV)

SUV applies statistical normalization to volume, measuring how many standard deviations today's volume is from the mean. This z-score approach accounts for each stock's individual volume stability, not just its average.

SUV = (Today's Volume - Average Volume) / Standard Deviation of Volume

Using the examples above:
- Stock A (high volatility): SUV = 2.0 — elevated but not unusual for this stock
- Stock B (low volatility): SUV = 10.0 — extremely unusual, demands attention

SUV automatically calibrates to each security's behaviour, making volume readings comparable across any stock, ETF, or timeframe.

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What SUV Is Good For

✅ Identifying genuine volume anomalies — separates signal from noise
✅ Comparing volume across different securities — apples-to-apples z-scores
✅ Spotting institutional activity — large players create statistically significant footprints
✅ Confirming breakouts — high SUV validates price moves
✅ Detecting exhaustion — extreme SUV after extended moves may signal climax
✅ Finding "dry" setups — negative SUV reveals quiet accumulation periods

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Where SUV Has Limitations

⚠️ Earnings/news events — SUV will spike dramatically (by design), but the statistical reading may be less meaningful when fundamentals change
⚠️ Low-float stocks — extreme volume volatility can produce erratic SUV readings
⚠️ First 20 bars — needs lookback period to establish baseline; early readings are less reliable
⚠️ Doesn't predict direction — SUV measures volume intensity, not whether price will rise or fall

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How to Read This Indicator

Bar Height

Displays actual volume (like a traditional volume chart) so you can still see absolute levels.

Bar Color (SUV Intensity)

Color intensity reflects the SUV z-score. Brighter = more unusual.

Up Days (Green Gradient):
| Color | SUV Range | Meaning |
|--------------|-----------|------------------------------------------|
| Bright Green | ≥ 3.0 | EXTREME — Highly unusual buying activity |
| Green | ≥ 2.0 | VERY HIGH — Significant accumulation |
| Light Green | ≥ 1.5 | HIGH — Above-average interest |
| Pale Green | ≥ 1.0 | ELEVATED — Moderately active |
| Muted Green | 0 to 1.0 | NORMAL — Typical volume |
| Dark Grey | < 0 | DRY — Below-average, quiet |

Down Days (Red Gradient):
| Color | SUV Range | Meaning |
|------------|-----------|-----------------------------------------|
| Bright Red | ≥ 3.0 | EXTREME — Panic selling or capitulation |
| Red | ≥ 2.0 | VERY HIGH — Heavy distribution |
| Light Red | ≥ 1.5 | HIGH — Active selling |
| Pale Red | ≥ 1.0 | ELEVATED — Moderate selling |
| Muted Red | 0 to 1.0 | NORMAL — Routine down day |
| Dark Grey | < 0 | DRY — Light profit-taking |

Coiled State (Tan/Beige):
When detected, bars turn muted tan regardless of direction. This indicates:
- Volume compression (SUV below threshold for consecutive days)
- Volatility contraction (ATR below average)
- Price tightness (small recent moves)

Coiled states may precede significant breakouts.

Special Markers

"P" Label (Blue) — Pocket Pivot detected. Morales & Kacher's signal fires when:
- Price closes higher than previous close
- Price closes above the open (green candle)
- Volume exceeds the highest down-day volume of the last 10 bars

Pocket Pivots may indicate institutional buying before a traditional breakout.

"C" Label (Orange) — Coiled state confirmed. The stock is consolidating with compressed volume and tight price action. Watch for expansion.

Dashboard

The configurable dashboard displays real-time metrics. Default items:
- Vol — Current bar volume
- SUV — Z-score value
- Class — Classification (EXTREME/VERY HIGH/HIGH/ELEVATED/NORMAL/DRY/COILED)
- Proj RVol — Projected end-of-day relative volume (intraday only)

Additional optional items: Direction, Coil Status, Relative ATR, Pocket Pivot, Average Volume.

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Practical Usage Tips

1. SUV ≥ 2 on breakouts — Validates the move has institutional participation
2. Watch for SUV < 0 bases — Quiet accumulation zones where smart money builds positions
3. Coil → Expansion — After consecutive coiled days, the first SUV ≥ 1.5 bar often signals direction
4. Pocket Pivots in bases — Early accumulation signals before price breaks out
5. Extreme SUV (≥3) after extended moves — May indicate climax/exhaustion rather than continuation

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Settings Overview

| Group | Key Settings |
|-----------------|-----------------------------------------------------|
| SUV Settings | Lookback period (default 20) |
| Coil Detection | Enable/disable, sensitivity thresholds |
| Pocket Pivot | Enable/disable, lookback period |
| Display | Dashboard style (Ribbon/Table), position, text size |
| Dashboard Items | Toggle which metrics appear |
| Colors | Fully customizable gradient colors |

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Credits

SUV concept adapted from academic literature on standardized unexpected volume in market microstructure research. Pocket Pivot methodology based on Gil Morales and Chris Kacher's work. Coil detection inspired by volatility contraction patterns.

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This indicator does not provide financial advice. Always combine volume analysis with price action, market context, and proper risk management. No animals were harmed during the coding and testing of this indicator.